Canary Islands housing market challenges and initiatives

The Canary Islands is experiencing significant housing market pressures, characterized by high vacancy rates and rising property costs. Data from the National Statistics Institute indicates that approximately 19.42% of the archipelago’s residential stock, or roughly 211,452 homes, is vacant. To address concerns regarding the accuracy of these statistics, the regional government has commissioned the public company Visocan to conduct an independent study expected to be completed in 2026.

In terms of pricing, the cost of new homes in the islands rose by 11.9% year-on-year during the second quarter of 2026, a rate that exceeds the Spanish national average of 7.4%.

In response to these residential pressures, particularly in tourist-heavy areas, the Government of the Canary Islands has initiated public housing projects. This includes a contracting phase for 59 protected housing units in Arona, Tenerife, with an estimated budget of 16 million euros. This development is part of a broader regional initiative involving 134 protected homes across Arona, Guía de Isora, and Adeje, funded through the Recovery, Transformation, and Resilience Plan and Next Generation EU funds to promote social rental housing.