Property sales dropped by nearly 12% in July in the Canary Islands
The Canary Islands housing market slowed sharply in July, with property sales falling by 11.7% compared to the same month last year, according to data from Spain’s General Council of Notaries.
Nationally, sales declined just 1% year-on-year, totalling 71,550 transactions, while in the islands both demand and financing weakened. Mortgages for home purchases dropped 3.2% in the Canaries, even as property prices rose by 4.9%.
The average price per square metre nationwide increased to €1,910, with apartments up 8.5% to €2,193/m², while single-family homes fell by 1.1% to €1,437/m². In the Canaries, the upward pressure on prices is adding to affordability challenges, particularly for young buyers and vulnerable households.
Across Spain, the sharpest sales declines were recorded in Madrid (-15.5%), followed by the Canary Islands (-11.7%) and Cantabria (-8.2%). By contrast, the biggest growth came in Navarra (21.5%), Aragón (14.1%) and La Rioja (12.6%).
Despite weaker sales, more than half of all property purchases in July were financed through mortgages, with loans covering on average 72.5% of the purchase price. The easing of interest rates has improved financing conditions, but limited housing supply continues to drive up costs.
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