House prices in the Canary Islands saw an unprecedented increase of 19.3% in May compared with the same month in 2025, the highest increase anywhere in Spain, according to new figures released by valuation company Tinsa.

The sharp rise affects both new-build and second-hand properties and comes amid growing concern over the worsening housing crisis across the archipelago.

Nationally, average house prices rose by 15.4% year-on-year in May, matching April’s increase, but the Canary Islands once again led the country with the steepest climb. The Mediterranean coast followed with a 17.6% increase, ahead of metropolitan areas and major cities.

Housing Costs Continue to Outpace Inflation

With the latest increase, property prices across Spain have now risen by 14.9% since the start of 2026, significantly above the rate of inflation.

Analysts say the continued rise is being driven by a lack of housing supply combined with strong demand, further intensifying affordability problems for residents.

Compared with April, house prices in the islands increased by a further 0.5% during May alone.

Prices Now Above 2007 Property Boom Levels

According to Tinsa, property prices in the Canary Islands are now 24.8% higher than they were during the peak of Spain’s property bubble in 2007, at least in nominal terms.

The islands have also seen some of the strongest long-term growth since the post-crash market lows, with prices rising by 97.2% since the market bottomed out after the financial crisis.

Across Spain as a whole, property values are now just 1% below the all-time highs recorded before the 2008 housing collapse.

Economic Uncertainty Still a Factor

Despite the strong market, Tinsa noted that property sales have started to slow slightly during the first quarter of the year.

Cristina Arias, director of research at Tinsa by Accumin, said the market is still adjusting to previous interest rate cuts earlier in the year, while uncertainty surrounding inflation, mortgage costs and the conflict involving Iran has also influenced buyer behaviour.

However, she added that mortgage activity remains relatively strong and property sales continue to sit above historic averages.

The figures come as housing affordability remains one of the biggest concerns for residents in the Canary Islands, with growing political and social pressure over rising rents, limited housing supply and the impact of tourism on the local property market.