OFFICIAL: Canaries to build 1,000 new homes by 2028 after EU funding extension
The Canary Islands Government has confirmed that more than 1,000 new homes are to be built across the archipelago by December 2028, following an extension to key European funding deadlines. For the Canaries, where access to housing has become one of the most pressing social issues, the decision provides crucial breathing space.
The announcement comes after a multilateral housing meeting agreed to extend the execution and justification periods for projects financed through the EU’s Recovery and Resilience Mechanism (MRR).
Regional government spokesperson Alfonso Cabello explained that any housing developments already underway before June 2026 will now have until December 2028 to complete works and justify investment spending.
The extension applies to both new-build housing projects and residential renovation schemes funded by European recovery money.
According to the regional executive, if contracts are awarded before the end of this year, more than 1,000 new homes could be delivered across the islands under the revised timetable.
The measure does not only affect new construction. It also covers residential rehabilitation projects, including energy-efficiency upgrades and structural improvements, a key priority in many Canary municipalities where parts of the housing stock are ageing and in need of modernisation.
Officials say the agreement allows the region to approach the coming years “with far greater optimism”.
The announcement comes amid wider concerns across Spain about delays in the rollout of European recovery funds.
According to figures presented by the Canary Islands’ Finance Department, around 58% of MRR funds allocated to the region have been executed so far — slightly above the Spanish national average, which Economy Minister Carlos Cuerpo recently placed at approximately 55%.
However, the Canary Government has acknowledged that implementation has been more complex than originally anticipated.
Housing Crisis Remains a Major Concern
Access to affordable housing remains one of the archipelago’s most urgent social challenges, driven by rising rental prices, limited supply and growing pressure on the property market.
While the deadline extension does not solve the housing crisis on its own, it significantly reduces the risk of losing vital EU funding due to time constraints.
For residents — including many foreign nationals living and working in the islands — the message is clear: more homes are now expected to move forward, and key regeneration projects will remain viable through to 2028.
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