The average rental apartment in Canary Islands recorded a mean price of 11.77 Euros per square meter in March, which represented a quarterly increase of 8.98%, the most significant in the country. In comparison to March 2023, it grew by 24.16%, once again leading the national ranking. Monthly, it rose by 2.79%, the third most intense increase in Spain, according to pisos.com’s quarterly rental price report.
The Canary Islands were the fourth autonomous community with the highest monthly rent for tenants, behind the Balearic Islands (17.60 €/m2), among others. On the other hand, rental housing in Spain had an average price of 11.44 Euros per square meter in March 2024. This figure marked a monthly increase of 1.06% and a quarterly increase of 2.88%. Year-on-year, it grew by 7.82%. The end of the rental price escalation is still not in sight.
Ferran Font, Director of Studies at pisos.com, acknowledges that the withdrawal of market supply and the increase in demand “are factors that, as long as they are not resolved, will continue putting pressure on prices to rise.” In this sense, the real estate portal spokesperson points out that it is necessary to make this residential product secure and profitable for investment again.
On the tenants’ side, Font indicates that the margin of eviction is getting wider, as the effort rate required for monthly payment consumes a very high percentage of the salary. For Font, “this imbalance poses serious problems for social welfare, as access to housing is essential to develop other life plans.”
On the other hand, the executive highlights that the increase in rent undermines the intention to buy for those who had to wait until the mortgage environment improved: “Although the downward correction of interest rates set by the European Central Bank (ECB) is supposed to be just around the corner, previous savings are still essential to obtain financing, and while this capital is gathered, renting a home whose growing cost does not facilitate this provision,” comments Font.
By provinces
Compared to December 2023, Santa Cruz de Tenerife (9.09%) was the Spanish province that grew the most. Las Palmas (8.89%) ranked fourth on this list. In the year-on-year variation, the rise in Las Palmas (25%) was the most significant in Spain, and that of Santa Cruz de Tenerife (22.59%), the fourth. With 12.50 Euros per square meter in March 2024, Las Palmas was the fifth most expensive province in the country, while Santa Cruz de Tenerife, with 10.80 Euros per square meter, was the seventh.
As for the Canarian capitals, Santa Cruz de Tenerife (6.02%) showed the eleventh most pronounced quarterly increase in the country, while Las Palmas de Gran Canaria (-0.37%) was the Spanish capital that adjusted the least. From one year to the next, Las Palmas de Gran Canaria (20.60%) saw the sixth highest increase in the country, and Santa Cruz de Tenerife (18.43%), the seventh. In terms of average monthly rents, Las Palmas de Gran Canaria (13.84 €/m2) was the eighth most expensive in Spain, while Santa Cruz de Tenerife (12 €/m2) ranked tenth in this same list.
