Building permits in the Canary Islands are on the rise, but remain at historically low levels

In June, 55.4 per cent more planning permissions for flats were granted in the Canary Islands than a year earlier. The Canary Islands Statistical Office ISTAC recorded 623 permissions, compared with 401 in June of the previous year.

There was also an increase compared with May: in May, ISTAC had recorded 429 approvals, whilst the June figure is 45.2 per cent higher. Taking the months from January to June 2026 together, the agency has issued 3,339 approvals, which is 29.4 per cent more than in the first half of the previous year.

The statistical series begins in January 2000, when ISTAC recorded 2,784 permits on the islands. Despite the recent surge, the June figure remains 77.6 per cent below this baseline.

Canary Islands: House prices are rising, and a construction boom is shaping the coastline

Prices also rose in tandem with the number of planning permissions granted. According to ISTAC, residential property on the open market cost 2,279 euros per square metre in the second quarter, 14.2 per cent more than a year earlier. On the rental market, 71,946 registered holiday lettings across all the islands are competing with the regular supply (as of Wednesday). Furthermore, there are plans in the Canary Islands to issue planning permission much more quickly.

A study by SOS Costas Canarias and the University of La Laguna shows that earlier phases of construction have left their mark. According to the study, a large proportion of the Canary Islands‘ current coastal infrastructure has been built since the 1980s. The previous construction boom in the south of Tenerife continues to shape the coastline there to this day.