SANTA CRUZ DE TENERIFE, 8 April. (EUROPA PRESS) –
The average rental price for an apartment in the Canary Islands reached 11.77 euros per square metre in March, showing a quarterly surge of 8.98%, the highest in the country. Compared to March 2023, this represented a growth of 24.16%, once again leading the national rankings. On a monthly basis, there was a 2.79% increase, ranking third in Spain, according to the quarterly rental price report by apartments.com.
The Canary Islands ranked as the fourth autonomous region with the highest monthly rental costs for tenants, behind regions such as the Balearic Islands (€17.60/m2). In Spain, the average rental price per square metre was 11.44 euros in March 2024, showing a monthly increase of 1.06% and a quarterly increase of 2.88%. Year-on-year, there was a growth of 7.82%. The rising trend in rental prices shows no signs of slowing down.
Ferran Font, Director of Studies at apartments.com, acknowledges that the decreasing supply in the market and the increasing demand are factors that will continue to exert upward pressure on prices until resolved. In this context, the spokesperson for the real estate portal emphasises the need to once again make residential property secure and profitable for investments.
Font highlights that tenants are facing a widening gap, as the high percentage of their income required to cover the monthly rent poses serious challenges to their financial stability. Access to affordable housing is crucial for pursuing other essential life goals, according to Font.
Moreover, the escalating rental costs are hindering the buying plans of individuals waiting for an improvement in mortgage conditions. Font points out, “Although the expected decrease in interest rates by the European Central Bank (ECB) is on the horizon, saving beforehand remains crucial to secure financing. Meanwhile, the increasing rental costs make this task more challenging.”
Santa Cruz de Tenerife (9.09%) experienced the most significant growth among Spanish provinces compared to December 2023. Las Palmas (8.89%) secured the fourth spot on the same list. In terms of year-on-year variation, Las Palmas (25%) witnessed the most notable surge in Spain, while Santa Cruz de Tenerife (22.59%) was ranked fourth. With a price of 12.50 euros per square metre in March 2024, Las Palmas became the fifth most expensive province in the country, whereas Santa Cruz de Tenerife, with 10.80 euros per square metre, ranked seventh.
In relation to the capital cities of the Canary Islands, Santa Cruz de Tenerife (6.02%) showed the eleventh most significant quarterly surge in the country, while Las Palmas de Gran Canaria (-0.37%) experienced the least adjustment. Annual comparisons revealed that Las Palmas de Gran Canaria (20.60%) witnessed the sixth-highest increase among Spanish capitals, and Santa Cruz de Tenerife (18.43%) ranked seventh. In terms of average monthly rents, Las Palmas de Gran Canaria (€13.84/m2) ranked as the eighth most expensive city in Spain, while Santa Cruz de Tenerife (€12/m2) occupied the tenth spot on the list.
