Canary Islands: square metre prices rise faster than the house price index

Property prices in the Canary Islands are continuing to rise. The price per square metre has risen by 14.2 per cent, which is a sharper increase than the price index. The government intends to restrict second-home purchases by foreign buyers.

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The price per square metre of living space in the Canary Islands rose by 14.2 per cent within a year.
According to the statistics office ISTAC, the price per square metre on the open market stood at 2,279 euros in the second quarter of 2026.
The Canary Islands government wants to make it more difficult for foreign investors to buy second homes and is lobbying in Brussels for new restrictions.

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The price per square metre of living space in the Canary Islands has risen by 14.2 per cent within a year. Property prices in the Canary Islands stood at 2,279 euros per square metre for purchases on the open market in the second quarter of 2026, according to the Canary Islands Statistical Office ISTAC.

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House prices in the Canary Islands rose by 11 per cent, according to the house price index published by the Office for National Statistics. The index stood at 110.44 points compared with the same quarter of the previous year. The price per square metre thus rose by 3.2 percentage points more than the index.

In Tenerife , tourism is putting additional pressure on the housing market, as a large number of flats there are used as holiday accommodation. Due to the ongoing rise in prices, politicians in the Canary Islands have already adopted new rules for holiday accommodation.

Canary Islands: Government plans to restrict foreign purchases of second homes

The Canary Islands government also intends to restrict the purchase of second homes by foreign investors. To this end, it is lobbying in Brussels for limits on the purchase of second homes, in order to ease the pressure on the local housing market.