Monthly rents are 57% more expensive in the Canary Islands than in the 2007 housing boom

Over the last few years, the cost of renting a property has increased out of all proportion in Spain, including here in the Canary Islands, and has now reached an all-time high exceeding the level registered in 2007, by 14%, during the housing boom and before the recession. They now stand at 11.55 euros/m2, and rents in the Canary Islands have experienced the second largest increase in the whole of Spain.

According to Fotocasa, only the Balearic Islands have had a greater increase in rents than the Canary Islands, with 62% compared to 57%. They also stress that this cannot be classed as a “rent bubble”, but rather a price premium, and say that the risk of inaccessibility is very high given that wages aren’t going up at the same rate as housing prices.

In most regions of Spain, except Asturias, Aragón and Castilla-La Mancha, the price of rents now exceeds those registered in 2007, and in 11 of the 17 autonomous regions, the increase is double digits. In the most “stressed areas”, the price of rents are now 60%, 50%, 40% or 30% above the previous highest prices, something that has happened in just one year.

During 2022, most regions reached a record high equalling those of 2007, but they did not stay at that level, they have continued to increase until they exceed the data registered in the middle of the bubble, with 96% of provincial capital cities exceeding 2007 figures.

Some capitals stand out for having increases of more than 50%, such as Malaga city (61.7%), Las Palmas de Gran Canaria (59.9%) or Palma de Mallorca (58.2%). There are also cities that show increases of over 30%, such as Valencia capital (45.4%), Barcelona capital (37.1%), Alicante capital (36.3%) and Madrid capital (32.4%), among others.

The big question is, when and how will it stop?