Fewer Buyers, Higher Prices: What Is Happening to the Canary Islands Property Market

The Numbers: Canaries Falling Faster Than Spain

In the second half of 2025, foreign buyers completed 3,667 property transactions in the Canary Islands — 10.8 per cent fewer than the same period the year before. Across Spain as a whole, foreigners made 66,629 purchases, a decline of 4.4 per cent. The Canaries are dropping at more than twice the national rate.

This is not a one-off. In the second half of 2024, the Canary Islands were already the only autonomous community in Spain where foreign purchases fell — by 3.9 per cent at the time. The trend has now nearly tripled.

The Paradox: Fewer Buyers, Higher Prices

Falling demand usually means falling prices. Not in the Canary Islands. The price per square metre rose 9 per cent to €2,801 in the same period. The reason: supply is shrinking even faster than demand. New construction is scarce, planning permission takes years, and many owners keep their properties in the booming holiday rental market rather than selling.

There is also a shift within buyer groups. Non-residents — foreigners without an address in Spain — are buying 15.1 per cent less nationwide. But purchases by residents (foreigners living in Spain) rose 3.3 per cent. In the Canaries, residents now account for 62.8 per cent of all foreign purchases. The tourist buying a holiday flat is becoming rarer. The expat already living here is buying more often.

Canaries in the Spanish Context

With a 27.2 per cent foreign share of all property purchases, the Canary Islands rank third nationally — behind the Balearics (32.6%) and Valencia (28.9%). The province of Santa Cruz de Tenerife reaches 33.1 per cent, making it the district with the second-highest foreign buyer share in all of Spain, trailing only Alicante at 43.8 per cent.

Historically, around 36 per cent of all residential sales in the Canary Islands between 2007 and 2025 went to foreign buyers. The islands have been one of Spain's most international property markets for decades.

The Government Plans Restrictions

Madrid has announced support for the Canary Islands regional government in restricting property purchases by non-residents. No draft legislation has been published yet, but the political direction is clear: the Balearics have already discussed similar measures, and the Canary Islands face particularly acute housing pressure.

For non-residents still looking to buy, the window may be narrowing. For owners who already hold property, the combination of rising prices and potential purchase restrictions points towards value stability — fewer transactions, but higher prices per square metre.

What This Means for Owners and Expats

The market is realigning. Non-residents face rising prices and regulatory uncertainty. Residents already living in the islands are buying more. And those who already own property are seeing values rise — even as overall demand falls.

The Canary Islands remain one of Spain's most active property markets. But the buyer profile is changing: fewer holidaymakers, more residents. Fewer impulse purchases, more long-term investments. This is not a crisis — but a shift worth understanding.

Sources: Consejo General del Notariado (April 2026), Canarias7, BrainsRE, elDiario.es Canarias, RTVC, Registradores Anuario 2024.