Panic in Canary Islands as prices rocket in Tenerife and Gran Canaria | World | News
The housing crisis in the Canary Islands has reached new heights, as new data has revealed that the average rent for a home in the Spanish archipelago increased to a record high last month. According to property portal Idealista, the monthly cost of renting a home on its islands, including Tenerife and Gran Canaria, reached a record average of €15.30 (£13.30) per square metre in December.
Rental prices in Spain have been heavily affected by overtourism across the country, as long-term housing supplies have been converted into highly profitable short-term tourist rentals through websites such as Airbnb and Booking.com. This, in turn, has reduced local supply and increased competition, especially in major tourist hotspots like Barcelona and Madrid, making housing unaffordable for many residents and sparking protests. The new statistics reveal the worrying impact this effect is now having in the Canary Islands too.
The Canary Islands’ two provinces – Santa Cruz de Tenerife and Las Palmas – both showed similar year-on-year growth according to the data, with rents rising by 8.6% and 8.1% respectively. Within Las Palmas, the capital, Las Palmas de Gran Canaria recorded an 8.2% rise to €14 (£12.17) per square metre, while La Olivia in northern Fuerteventura faced the sharpest increase at an eyewatering 14.3%. Elsewhere, rents rose by 10.8% in Agüimes and by 10.1% in Telde, both in eastern Gran Canaria.
San Bartolomé de Tirajana, a picturesque village in southwestern Gran Canaria, remained the most expensive market at a staggering €21.50 (£18.70) per square metre, while Santa Lucía de Tirajana, located in the southeastern part of the island, was the most affordable at €10.90 (£9.47) per square metre.
Across the water in Tenerife, the capital, Santa Cruz de Tenerife, registered a 13.6% annual increase to €13.30 (£11.56) per square metre, while San Miguel de Abona (southern Tenerife) and Guía de Isora (western Tenerife) saw the steepest rises at 21.6% and 16.3%, respectively. The popular tourist resort of Adeje in the southwest and Arona in the south topped the price table with €19.50 (£16.95) and €18.90 (£16.42) per square metre, respectively.
La Orotava near Puerto de la Cruz in northern Tenerife remained the most economical option on the island, at €10.70 (£9.30) per square metre.
While the picture was particularly stark in the Canary Islands, it followed a trend across Spain. Nationally, monthly rental prices in Spain grew by 8.5% last year, reaching an average of €14.70 (£12.77) per square metre. Of the 50 provincial capitals analysed, 25 hit a record high for the final quarter of 2025. Ceuta, an autonomous city on the North African coast, bordered by Morocco, recorded the largest annual increase at 17.8%.
Meanwhile, San Sebastián (Donostia), a beautiful coastal city in the Basque Country, was the only capital where prices fell, albeit by only 0.5%.
Unsurprisingly, the Catalonian capital of Barcelona continued to be the most expensive city for renters, at an eye-watering €23.80 (£20.68) per square metre, followed by Madrid (€22.70 or £19.37) and Palma on Majorca (€18.30 or £15.90).
