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Friday, 9. October 2026
Canary Islands News

485 million euros sparks housing row in the Canary Islands

The Canary Islands are paying 485 million euros for tourism agreements. The PSOE says opportunities for housebuilding have been missed. The minister still considers the deal the more favourable solution.
The key points: Show summary Hide summary
  • The Canary Islands Government is allocating 485 million euros in compensation to landowners and is therefore not proceeding with the rezoning of the land.
  • The PSOE has criticised the agreements on the grounds that they will result in the islands losing strategic sites for housing development.
  • Minister Miranda defends the agreement as a more cost-effective solution, as a legal battle lasting several years would have incurred higher costs.
Members see a handy summary here

On Friday, Manuel Miranda, the Canary Islands Government’s Minister for Territorial Policy, defended the out-of-court settlements reached with the owners of plots affected by the tourism moratorium in the face of criticism from the PSOE, which has questioned the Executive’s decision to allocate 485 million euros to compensation and to abandon procedures to reclassify land for housing development.

During a parliamentary question regarding the possible consequences of these agreements for the objectives of the demographic challenge, the Socialist MP Nayra Alemán warned that the Canary Islands are not only allocating public funds to compensation payments, but are also missing an opportunity to increase their decision-making power over land that they consider strategic for the development of public policies.

The MP has linked this decision to the Canary Islands Government’s document, *51 Measures for the Canarian Identity of the Future*, which identifies the lack of land and the difficulties in managing it as some of the obstacles to increasing the housing supply.

Canary Islands: PSOE warns of the loss of strategic building land

«Those 485 million won’t be able to be allocated to housing, public services, infrastructure or any other needs of the people of the Canary Islands,» said Alemán.



The MP pointed out that in 2022 the Government initiated procedures to reclassify the land and argued that these would enable the administration to regain decision-making power over its future.

However, she has pointed out that, following the agreements reached, the Government is withdrawing from these proceedings and the landowners retain their land and the right to continue retaining its corresponding use.

«Not only are we going to pay the compensation, but we are also giving up the opportunity to implement public policies on those plots of land,» she said.

Alemán has emphasised that the demographic challenge is not simply about getting more people to live in the Canary Islands, but also about ensuring that those who wish to live on the islands can do so, that young people can become independent, and that families can find a home.

Miranda maintains that these powers lie with the local councils

In his response, Miranda argued that the Government had resolved a problem that could have had more serious economic consequences in the future, and rejected the suggestion that the agreements were inconsistent with the objectives of the demographic challenge.

The councillor pointed out that Article 17.1 of Law 6/2009 provided for compensation for companies‘ building rights over a five-year period, after which the land would revert to its original state.

Miranda added that responsibility for land-use planning and reclassification no longer lies with the Canary Islands Government, but with the local councils; consequently, as he explained, the Executive could not determine on its own whether or not those plots of land should be classified.

«What the Government has done is, faced with a situation that could lead to a much bigger problem in the future, take action, tackle the problem head-on and come up with a solution,» he said.

The minister maintained that the agreements have the necessary judicial backing and pointed out that the Government considered this to be the appropriate way to resolve the conflict.

He has also given an assurance that the Government will continue to work to identify suitable land and explore options for building homes.

PSOE questions whether the agreement is in the public interest

In his response, Alemán pointed out that the court’s approval of the agreement does not mean that its content ceases to be a decision reached between the parties.

The MP has insisted that the public interest must take precedence over private interests and has questioned whether the two are consistent with the agreed terms.

Tourism moratorium: Miranda warns of higher compensation payments

In this regard, Miranda has replied that the public interest can be interpreted from different perspectives and has argued that the agreement also protects future generations from the prospect of even greater debt.

The councillor warned that, without an agreement on compensation, a legal dispute lasting ten years could have resulted in a financial liability greater than the current one.

He concluded that the Government is «very reassured» with its handling of the matter and stated that the agreement puts an end to the claims relating to this issue.

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  • With an image and/or material from the EFE news agency.
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«485 million euros sparks housing row in the Canary Islands»

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