Rental prices in the Canary Islands experience first monthly drop this year

The cost of long-term rental housing in the Canary Islands, not holiday lets, saw a slight drop of 0.5% in August compared to July, even though prices are 18% higher than the same month of last year, with an average price of 12.83 euros per square metre. This marks the first monthly decrease in 2023, as highlighted in the latest data from the Fotocasa Real Estate Index.

In August, all but one region of Spain experienced an increase in year-on-year rental prices, and six regions witnessed double-digit growth, with the Balearic Islands taking the lead with a remarkable 22.1% surge compared to 2022.

Following closely behind were the Canary Islands with an 18% increase, then the Valencian Community at 15%, Cantabria at 12.9%, La Rioja at 12.5%, the Basque Country at 10.4%, Madrid at 9.5%, Andalusia at 7.8%, Catalonia at 6.5%, Galicia at 6.4%, Castilla y León at 5.4%, Navarra at 5.1%, Castilla-La Mancha at 5%, Asturias at 5%, Aragón at 1.8%, and the Region of Murcia at 1.2%. The sole region to experience a decrease compared to the previous year was Extremadura, with a -1% decrease.

In August, three regions set new record rental prices per square metre per month for their area. These were the Basque Country at €15.06/m2 per month, Asturias at €9.11/m2 per month, and La Rioja at €8.90/m2 per month.

When ranking the regions in order of the highest monthly cost per square metre, the Balearic Islands and Madrid take the top spots with prices of €17.01/m2 per month and €16.90/m2 per month, respectively. Six more regions also exceed the €10.00/m2 per month mark: Catalonia at €15.88/m2 per month, the Basque Country at €15.06/m2 per month, the Canary Islands at €12.83/m2 per month, Cantabria at €12.39/m2 per month, Comunitat Valenciana at €11.40/m2 per month, and Navarra at €10.93/m2 per month.

The Canary Islands:
Within the two Canary Islands provinces, the year-on-year price of rental housing saw an increase in August 2023 compared to August 2022, as per the Fotocasa Real Estate Index. Las Palmas (Gran Canaria, Lanzarote, and Fuerteventura) saw a massive 18.6% surge, while Santa Cruz de Tenerife (Tenerife, La Palma, La Gomera, and El Hierro) followed closely behind with a 16.9% increase.

In terms of rental prices, Las Palmas de Gran Canaria ranked higher with €13.24/m2 per month, while Santa Cruz de Tenerife recorded €12.18/m2 per month, and within the cities of both provinces, the cost of rental homes also experienced year-on-year growth. Specifically, Santa Cruz de Tenerife's capital city recorded an 18.6% increase, while Las Palmas de Gran Canaria saw a 17% surge.

As for the price per square meter in August, Las Palmas de Gran Canaria led the way with €13.55/m2 per month, followed by Santa Cruz de Tenerife's capital city at €11.37/m2 per month.

This data provides a comprehensive view of the rental housing market in the Canary Islands and its provinces, shedding light on the dynamics of housing costs in the region.