TheCanarian property marketischaracterized by strong price growth, high demand from international buyers, and new government measures to address affordability issues for residents. The market is also experiencing a supply shortage, particularly in tourist areas.

• Average prices have increased significantly. In August 2025, the average asking price for residential properties in the Canary Islands was €3,370 per square meter, a 14.55% increase compared to September 2024.
• Rapid appreciation in tourist hotspots. Certain areas, like southern Tenerife, have seen even more dramatic price hikes. For example, property prices there reportedly rose by 73% over a five-year period.

• Santa Cruz de Tenerife vs. Las Palmas: In August 2025, the province of Santa Cruz de Tenerife recorded the highest asking price for properties for sale (€3,722/m²), while Las Palmas had the lowest (€2,738/m²).
• Rental vs. sales prices: In contrast, rental prices were higher in Las Palmas (€17.69/m² per month) than in Santa Cruz de Tenerife (€15.33/m² per month) during the same period.
• Fuerteventura's affordability: Despite being a popular tourist destination, Fuerteventura remains one of the more affordable islands for property purchases compared to Tenerife or Gran Canaria.

• Limiting foreign purchases: In September 2025, the Canarian government announced plans to develop legal measures to limit property purchases by non-residents. This policy is a direct response to a housing market where local residents are increasingly being priced out.
• Targeting southern municipalities: The focus is particularly sharp in southern municipalities with high tourist traffic, such as Mogán and San Bartolomé de Tirajana, where foreign-driven sales and price disparities are most pronounced.

• High international demand: The Canary Islands remain a very attractive market for overseas buyers seeking holiday or investment properties. Demand has grown since the pandemic, with buyers drawn by better value for money compared to other parts of Spain.
• Shift in buyer demographics: While British buyers were historically dominant, other European nationalities (Dutch, German, Belgian, Swedish) and North Americans have become more active. The British market has slowed significantly due to Brexit and other domestic pressures.
• Supply shortage: A lack of housing stock is supporting high prices, particularly for well-maintained coastal properties that are popular with international buyers.

• Lower transfer tax: The Canary Islands have a lower property transfer tax (6.5%) compared to some other regions in Spain (like Valencia, at 10%), making them a more cost-effective choice for some buyers.
• New-build and off-plan options: There are numerous new-build and off-plan property developments across the islands, providing alternative options for investors.
• Professional guidance: Prospective buyers are advised to work with local estate agents and English-speaking lawyers. This ensures all legal checks are completed correctly and helps navigate the local nuances of the market.