Canary Islands Sees Significant Rise in Rental Prices This November

According to a recent report by Idealista, rental prices in the Canary Islands surged by an impressive 7.4% in November compared to the same month last year. This increase highlights the ongoing demand for rental properties in the archipelago, which continues to attract both locals and expatriates alike.

Understanding the Current Rental Landscape

The average rental cost in the Canary Islands has reached €15.1 per square metre. While this marks a significant annual increase, it is worth noting that there was a slight monthly decline of 0.1% in rental prices. This fluctuation may indicate a temporary adjustment in the market, as seasonal trends often influence rental rates.

As the demand for housing remains high, many landlords are adjusting their pricing strategies to reflect the current market conditions. The Canary Islands, known for their stunning landscapes and favorable climate, continue to be a desirable location for many, which may contribute to the upward trend in rental prices.

Comparative Insights on Rental Prices Across Spain

When placed within the broader context of Spain, rental prices have seen a notable year-on-year increase of 9.9%, culminating at €14.6 per square metre by the end of November. This figure also reflects a modest rise of 0.3% over the past three months and a 0.6% increase from the previous month.

Every autonomous community in Spain has reported an increase in rental prices since November of the previous year. The Community of Madrid stands out with the highest increase at 12.4%, followed closely by Castilla-La Mancha at 11.6% and Andalucía at 10.7%. In contrast, Extremadura recorded the smallest increase at just 2.9%, while both Cantabria and Galicia saw rises of 4% each.

In terms of rental costs, the Community of Madrid leads the way with an average of €21 per square metre, followed by the Balearic Islands at €19.1 and Catalonia at €18.7. The Canary Islands rank fourth in terms of rental expenses, while Extremadura and Castilla-La Mancha remain the most affordable regions, with averages of €7.2 and €8.1 per square metre, respectively.

Capitals Witnessing Notable Rental Price Increases

Across Spain, rental prices have increased in 51 capitals compared to November of the previous year, with the exception of San Sebastián, where rents experienced a slight decrease of 0.2%. The most significant increase was observed in Ceuta, where landlords raised their expectations by an astonishing 18.7%. Other notable increases were recorded in Segovia (16.3%), Santa Cruz de Tenerife (15.3%), Ciudad Real (14.6%), and Guadalajara (14.6%).

On the flip side, Huesca reported the smallest increase at just 1%, followed by Girona (1.1%), Pamplona (1.6%), and A Coruña (2.4%). Major markets across the country have generally experienced upward trends, with increases of 11.3% in Madrid, 8.7% in Alicante, and 7.3% in both Palma and Sevilla. Valencia saw a rise of 6.4%, while Bilbao and Málaga recorded increases of 3.5% and 3.4%, respectively.

In terms of rental prices among capitals, Barcelona remains the most expensive, averaging €24 per square metre, followed closely by Madrid at €22.8 and Palma at €18.2. In contrast, Zamora, Ciudad Real, and Lugo are the capitals with the lowest rental rates, averaging €7.6 and €7.8 per square metre.

Key points

• Rental prices in the Canary Islands rose by 7.4% in November year-on-year.
• The average rental cost in the Canary Islands is €15.1 per square metre.
• Spain’s overall rental prices increased by 9.9% year-on-year, reaching €14.6 per square metre.
• The Community of Madrid has the highest rental prices at €21 per square metre.
• Ceuta saw the largest rental price increase at 18.7% over the past year.
• San Sebastián is the only capital with a decrease in rental prices, down by 0.2%.
• Barcelona has the highest rental prices among capitals, averaging €24 per square metre.