Holiday rental properties in the Canary Islands drop to two-year low
The number of holiday rental properties in the Canary Islands has fallen by 4% compared to last year, reaching its lowest level in two years.
According to the Canary Islands Statistics Institute (ISTAC), there were 42,896 holiday lets available across the islands in February 2026. While still an impressive figure, there is a notable decline from February 2025, reflecting the impact of tighter regulations introduced by the regional government.
The drop comes after the Canary Islands Parliament approved new legislation in November, limiting the proportion of properties that can be used as holiday rentals compared to residential housing. The law also introduced a five-year ban on the creation of new tourist accommodation of this type.
The decline is even more pronounced when it comes to capacity, with the total number of available beds falling by 6.6% year-on-year to 176,657.
Despite the reduction in supply, demand remains strong. In February, 42,262 holiday rental properties received at least one booking, representing 92.7% of all available listings on the digital platforms analysed.
Tenerife continues to dominate the market, accounting for 41% of all holiday rentals in the Canary Islands. Gran Canaria follows with 23%, while Lanzarote and Fuerteventura represent 15% and 14% respectively.
At the municipal level, the highest concentration of holiday lets is found in the popular tourist hotspots. Arona tops the list with 4,231 properties, followed by Adeje (3,815), San Bartolomé de Tirajana (3,670), La Oliva (3,335), Yaiza (2,362) and Tías (2,079). These figures far exceed those recorded across the smaller “green islands”, with La Palma hosting 1,972 properties, La Gomera 824 and El Hierro just 461.
In contrast, the lowest numbers are found in less tourist-heavy areas, particularly inland or northern municipalities. These include Valleseco (16 properties), Artenara (23), San Andrés y Sauces (26), La Victoria (26), Barlovento (33), Betancuria (35), Firgas (39), Arafo (39) and Vilaflor (42).
The figures highlight a shifting landscape for holiday rentals in the Canary Islands, as authorities attempt to balance tourism demand with the growing need for residential housing.
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