Property sales have fallen dramatically in the Canary Islands as prices continue to increase
The Canary Islands housing market has started the year with a sharp slump in sales, even as property prices continue to climb significantly, according to newly released figures from the General Council of Notaries.
Property transactions in the islands fell by 13.6% year-on-year, while the average price rose by a striking 16.5%. At the same time, mortgage approvals for home purchases dropped by 12%, reflecting growing pressure on buyers.
Across Spain, the housing market is showing similar signs of cooling down. Home sales declined by 11.4% compared to the same period last year, while mortgage approvals fell by 6.8% in January, ending a run of 21 consecutive months of growth.
Despite this slowdown, property prices across the country continue to rise, increasing by 9% year-on-year.
Rising Prices and Limited Supply
The data highlights an ongoing housing shortage, with demand continuing to outstrip supply. This imbalance is pushing prices higher and making it increasingly difficult for many people, particularly younger buyers and those on lower incomes, to get onto the property ladder.
This follows a strong end to 2025, when prices rose by 7.5%, surpassing the peak levels seen during the 2007 housing bubble. Property sales also grew by 4.4% last year, marking the second-highest number of transactions on record.
In January, the average price per square metre in Spain reached €2,065.
- Apartments and flats saw a 10.6% annual increase, reaching €2,382/m²
- Detached and semi-detached homes rose by 7% to €1,539/m², surpassing their previous peak from July 2007
Notably, flat prices had already exceeded their pre-crisis highs in early 2025.
The Canary Islands ranked among the regions with the strongest price increases, alongside areas such as Valencia, La Rioja, and Castilla-La Mancha.
Sales Decline Across Most Regions
A total of 49,685 property transactions were recorded in January across Spain:
- Apartment sales dropped by 12.6%
- Detached home sales fell by 7.8%
Sales declined in nearly every region, including the Canary Islands (-13.6%), with only Castilla-La Mancha and La Rioja seeing increases.
The steepest drops were recorded in Cantabria, Madrid, and Andalucía.
Mortgages Fall After Long Growth Period
Mortgage lending also showed a downturn, with 26,450 loans issued in January, a 6.8% decrease year-on-year.
However, the average mortgage value rose by 13% to €186,857, suggesting buyers are borrowing more to cope with rising prices.
Just over half (53.2%) of property purchases were financed through mortgages, with loans covering an average of 72.3% of the property price.
In the Canary Islands, mortgage approvals fell by 12%, placing the region among those with the sharpest declines.
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