Canary Islands Face Sharp Housing Price Gains and Secure €300 Million Credit Line

The Canary Islands recorded an 18.2% year‑on‑year rise in housing prices in Q2, outpacing the national average of 15.2%. The quarterly increase was 4.3% versus 3.7% for Spain overall. At €2,584 per square metre, prices are about 25% above the Spanish average and only lower than in the Balearic Islands, Madrid and the Basque Country. The surge reflects strong demand driven by population growth, a booming labour market and interest from mainland retirees, while supply remains constrained.

To bolster its treasury, the regional government obtained a preventive short‑term credit line of up to €300 million, usable for up to one year. The facility aims to smooth cash‑flow mismatches as liquidity from the EU Recovery and Resilience Mechanism normalises. The credit line does not affect the region’s solvency; its credit rating remains A+ with a stable outlook, and a recent €500 million sustainable bond issue was fully subscribed.