Property prices in the Canary Islands hit record highs in July 2025
Buying a home in the Canary Islands is becoming increasingly difficult for both residents and prospective buyers, as second-hand property prices have reached a new historic high. According to the latest data from the property portal Idealista, the average price per square metre in the archipelago rose by 17.2% in July 2025 compared to the same month last year, reaching €3,090/m².
That figure is €408 higher than in July 2024, when the price was €2,682/m². The month-on-month increase from June was 0.7%, while the rise since April stood at 3.6%. In real terms, this translates to an average increase of €46,000 per property over the past year.
Tenerife Tops Provincial Rankings
Breaking the figures down by province, Santa Cruz de Tenerife, which includes the islands of Tenerife, La Palma, La Gomera and El Hierro, leads with an average of €3,292/m², outpacing Las Palmas (Gran Canaria, Lanzarote and Fuerteventura) which now stands at €2,802/m².
Among municipalities, San Bartolomé de Tirajana (Gran Canaria) is the most expensive, with prices reaching €4,677/m², followed closely by Guía de Isora (Tenerife) at €4,632/m². On the more affordable end, Ingenio (Gran Canaria) stands at €1,237/m², with Icod de los Vinos (Tenerife) at €1,368/m².
The capital cities are nearly neck-and-neck: Santa Cruz de Tenerife (€2,486/m²) slightly edges out Las Palmas de Gran Canaria (€2,483/m²).
Rental Prices Also Climbing
Rental prices are also showing significant year-on-year growth, albeit with more modest recent changes. The average rental price across the Canary Islands in July was €15/m², a slight decrease of 0.6% from June, but 7.9% higher than in July 2024.
There is minimal difference between the two provinces: Las Palmas at €15.1/m² and Santa Cruz de Tenerife at €15/m². Popular tourist municipalities like Mogán (Gran Canaria) and Adeje (Tenerife) are pushing past or approaching the €20/m² mark, with Mogán reaching €20.5/m² and Adeje €19.8/m².
New Builds Require Long-Term Financial Commitment
According to the appraisal company Sociedad de Tasación, the average price of newly built homes in the Canary Islands during the first half of 2025 was €3,151/m². Their analysis, based on more than 43,000 properties, suggests that an average household would need nearly eight full years’ worth of income to afford a property.
It’s worth noting that the Bank of Spain fined the appraisal company nearly €600,000 in January 2025 for breaching valuation regulations.
Idealista’s index is based on the average listing prices of current properties for sale and rent. The portal adjusts the data to reduce distortion from changes in property type distribution over time, ensuring a more accurate comparison between periods.
As demand continues to outstrip supply and tourism-driven investment remains strong, especially in island regions, buyers and renters in the Canary Islands face growing challenges in securing affordable housing.
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