Accessing property in the Canaries increasingly requires a greater financial cushion.
According to a study by Qualis Credit Risk, buyers need €43,201 in the province of Las Palmas and €43,171 in Santa Cruz de Tenerife just to cover the deposit and associated mortgage costs.
In relative terms, this amounts to 2.06 and 2.11 annual gross salaries, respectively.
The same report estimates that acquiring a second-hand home of 80 square metres requires 7.6 and 7.7 annual gross salaries in each province.
The spokesperson for the Canary Islands Association of Real Estate Management Companies (ACEGI), Ciro Machado, points out that this prior effort “has always existed, but today it is aggravated by an extremely limited supply.”
“Access to financing has improved due to lower interest rates, but the real problem lies in the lack of supply, which puts even more strain on the market,” he emphasises.
Cheaper to buy
Machado recalls that in many cases, the mortgage payment is lower than the monthly rent, but most potential buyers do not have the necessary savings.
“If they could buy, it would be more profitable for them, but the deposit pushes them towards renting, where there are also no options,” he laments.
By regulation, banks do not finance more than 80% of the property’s value.
Additionally, there is a further 7% in costs such as notary fees, registration, or taxes.
Ineffective guarantees
Machado also refers to the ICO guarantees, designed to cover the 20% that banks do not finance.
Although they are available, “they are not being utilised as expected. The information does not reach the buyer properly, and many entities do not promote them.”
Second-hand predominates
In the Canaries, the weight of second-hand housing is almost absolute.
“New builds are scarce and moreover aimed at a public with greater purchasing power,” Machado indicates.
According to his data, the archipelago needs around 100,000 more homes to meet demand.
Foreign investment
One in four properties was purchased by a non-resident in 2024.
While many of these transactions concentrate in tourist areas, the spokesperson for ACEGI warns that this does not cover the real demand for regular housing.
“There are two distinct markets, and the one that is growing the most offers the least solutions to residents.”
Urgent need to build more
To improve access, the only realistic route is to increase supply.
“We need to build more, and do it now. Public aid is not enough,” Machado asserts.
He believes that the Housing Law of the Government of the Canaries is going in the right direction, but has fallen “short and slow” for current needs.
He also proposes urgent measures such as tax incentives for owners of vacant homes, guarantees against non-payments in long-term rentals, and public-private agreements to free up buildable land.
“Every day we receive dozens of requests from people looking for rental properties and not finding them. The situation is critical and will only be resolved with more housing on the market,” he concludes.
