Concerns Mount Over Rising Seasonal Rentals in the Canary Islands

Recent analyses indicate a significant shift in the rental landscape of the Canary Islands, with a growing share of the market now devoted to seasonal accommodations. This trend has sparked concerns among local residents and advocacy groups about its implications for housing stability in the region.

Shifting Dynamics in the Rental Market

Currently, around 42% of rental listings across the Canary Islands are categorized as seasonal. This trend is particularly evident in popular tourist destinations such as Fuerteventura, Lanzarote, La Palma, and El Hierro, where the proportion of seasonal rentals has surpassed 50%. These insights stem from a comprehensive report by the Drago Canarias party, which meticulously tracks the evolution of seasonal rentals throughout the islands. The data underscores a growing reliance on short-term rental models, which are increasingly favored by property owners seeking higher returns.

Challenges Faced by Local Residents

The surge in seasonal rentals is posing significant challenges for local communities, particularly for young people and workers who are in search of stable housing options. The prevalence of these rentals is often associated with trends like digital nomadism and covert tourism, which exacerbate the shortage of homes available for long-term residents. Drago Canarias has voiced strong concerns, asserting that the current situation is creating formidable barriers for individuals striving to build a stable life in the Canary Islands. The organization emphasizes the need for urgent action to address these pressing housing issues.

Recent Trends in Rental Listings

Over the past 18 months, the percentage of properties designated for seasonal rentals has seen a dramatic uptick in various municipalities. For example, in Santa Cruz de Tenerife, the share of seasonal rentals has skyrocketed from 5% to 26%, while Las Palmas de Gran Canaria has experienced a jump from 8% to 31.8%. These figures represent staggering growth rates of 500% and 400%, respectively, highlighting the rapid transformation of the rental market in these areas.

Concerns About Job Security and Housing Stability

Carmen Peña, a spokesperson for Drago Canarias, has raised critical alarms regarding the implications of the current rental model. She points out that the combination of temporary rental agreements and precarious employment situations is severely undermining individuals’ ability to achieve residential stability. Peña passionately states, “We are not a season; we are people who need a home,” underscoring the urgent need for reform in the rental market to protect the rights and needs of local residents.

Geographical Insights into Rental Distribution

Lanzarote currently boasts the highest percentage of seasonal rentals, standing at 59.52%, followed closely by La Palma at 54.48%, Fuerteventura at 52.05%, and El Hierro at 50%. In terms of absolute numbers, Gran Canaria has 613 seasonal rental properties compared to 723 residential rentals, while Lanzarote presents a stark contrast with only 17 regular rentals against 25 seasonal ones. This data, collected in October 2025 from a leading real estate portal, paints a vivid picture of the rental landscape across the islands.

Understanding the Regulatory Framework

The regulatory environment governing seasonal rentals in the Canary Islands is outlined in Article 3.2 of the Urban Letting Law. Unlike standard housing agreements, these seasonal rentals do not require mandatory extensions and typically necessitate a two-month deposit, making them more appealing to landlords. This regulatory framework is distinct from vacation rentals, which fall under tourism regulations, and regular residential rentals that provide greater tenant protection and stability. The differences in regulations highlight the challenges faced by those seeking long-term housing solutions in a market increasingly dominated by short-term rentals.

Key points

• 42% of the rental market in the Canary Islands is now seasonal accommodation.
• In Fuerteventura, Lanzarote, La Palma, and El Hierro, over half of the available rentals are seasonal.
• Santa Cruz de Tenerife’s seasonal rental percentage rose from 5% to 26% in 18 months.
• Las Palmas de Gran Canaria’s seasonal rentals increased from 8% to 31.8% during the same period.
• Lanzarote has the highest proportion of seasonal rentals at 59.52%.
• Seasonal rentals are regulated under Article 3.2 of the Urban Letting Law.
• Carmen Peña advocates for the elimination of temporary rentals unless linked to verified employment.