Market 2026: a well‑consolidated upward trajectory
September 2026: €3,084/m² after a long series of increases
In September 2026, the average price of residential real estate in the Canary Islands is around €3,084/m², an increase of about +13.4% year‑on‑year.
This growth hasn’t come out of nowhere: it is part of a continuous upward trend observed since January, with almost uninterrupted monthly increases. For an island market that is already highly touristic, this reveals several things:
- sustained attractiveness of the archipelago, well beyond a simple “post‑covid” effect;
- a gradual rebalancing of prices compared with other European sun destinations (Portugal, southern mainland Spain, Greece);
- constant pressure on supply in the most sought‑after areas, especially on the seafront.
In other words, we are no longer in a pure bargain market but in a market in a consolidation phase: prices are rising sharply, but in a way that makes sense given the level of demand.
Data from the Green Acres platform, which specialises in second homes, confirm this move upmarket: in Santa Cruz de Tenerife, properties generally offer generous floor areas, a sign of strong interest in comfortable residences rather than simple holiday bases.
Resilient demand: foreign buyers and short‑term rentals
Despite rising prices, demand remains strong, driven by several profiles:
- Year‑round foreign residents: European retirees, families seeking a mild climate, remote workers.
- Buy‑to‑let investors: individuals targeting short‑term or medium‑term rentals (digital nomads, students, posted workers).
- Spanish residents: especially from major cities, looking for a second home or a change of lifestyle.
What makes the market particularly resilient:
- an attractive climate 12 months a year, and therefore a very long tourist season;
- frequent air links with many European capitals;
- a living environment perceived as more affordable than in other Western European seaside regions.
Short‑term rentals play a key role: they provide attractive additional income and reassure buyers who are hesitant to take the plunge. But they also contribute to supply tensions in certain neighbourhoods, which fuels price increases near the best‑known beaches. 😌
The profiles of foreign buyers clearly reflect this sustained demand. According to searches recorded on Green Acres for the province of Tenerife, Italians account for around 20% of foreign enquiries, ahead of the French (13%) and Germans (10%).
Median budgets are around €259,000 for Italians and €328,000 for the French, with median floor areas between 60 and 100 m², i.e. median prices often above €3,000/m². This confirms Europeans’ appetite for reasonably sized but well‑located properties rather than very large homes set further back.
In the province of Las Palmas (Gran Canaria), the structure of foreign demand is similar: Italians also come first (17% of enquiries), ahead of the French (13%), with median budgets of around €255,000 to €275,000 for floor areas roughly between 65 and 110 m². Again, this reflects the idea of a pleasure/mixed‑use purchase, intended both for holidays and for rental.
Inter‑island disparities: where are prices rising the most?
Coastal areas of Tenerife and Gran Canaria: higher prices and tight supply
The most expensive and tightest markets are, unsurprisingly, in the most touristic coastal areas, in particular:
- in the south of Tenerife (Costa Adeje, Playa de las Américas, Los Cristianos);
- in the south of Gran Canaria (Maspalomas, Playa del Inglés, Meloneras, Arguineguín).
In these areas, you can expect:
- significantly higher prices per square metre than the archipelago average;
- strong competition for properties with sea views, terraces or pools;
- a limited stock of well‑located apartments (5 to 10 minutes’ walk from the beach).
In return, these areas offer:
- virtually uninterrupted rental demand all year round;
- generally easier resale, thanks to their international reputation;
- well‑developed services: shops, restaurants, international schools, private healthcare.
If your priority is liquidity and ease of letting, these coastal areas of Tenerife and Gran Canaria remain safe bets, even though entry tickets have risen sharply.
The median price levels observed among foreign buyers – often above €3,000/m² in both Tenerife and Las Palmas – clearly illustrate the gap between iconic seaside resorts and the rest of the territory.
In the most sought‑after areas, budgets of €250,000 to €350,000 generally correspond to medium‑sized apartments rather than large villas, which is pushing some buyers towards neighbourhoods that are slightly further back but still well connected.
Interior of the islands: lower entry costs, but mobility is essential
Inland areas, whether on Tenerife, Gran Canaria or the less touristic islands (La Palma, La Gomera, El Hierro, Lanzarote, Fuerteventura), see significantly lower prices per m².
Here you will find:
- village houses to renovate, with land, at more accessible price levels;
- apartments in smaller, less touristic but well‑equipped towns;
- fincas or rural properties for more self‑sufficient lifestyle projects.
However, this type of location implies:
- mobility is essential: a car is almost mandatory, with longer journey times to beaches and urban centres;
- a quieter life, with less going on in the evenings and outside the main tourist season;
- rental potential often geared more towards long‑term lets than classic short‑term holiday rentals.
For a lifestyle change project, this is often an excellent price/quality of life compromise, provided you are prepared to accept:
- a more rural or semi‑urban pace of life;
- lower resale liquidity than in the iconic seaside resorts;
- more detailed due diligence on the condition of the building and access (roads, slopes, neighbours).
If you are ready to live slightly away from the coast and travel regularly, the island interiors can still offer very attractive opportunities in 2026. 🚗
Letting and returns: a record‑breaking summer 2026
Summer 2026: higher occupancy rates and RevPAR
Figures for summer 2026 confirm the excellent health of the tourist market:
- hotel and para‑hotel occupancy rates are high, often exceeding pre‑crisis levels;
- RevPAR (revenue per available room) is clearly up, according to INE data and the specialist press;
- sustained demand from European tourists as well as long‑stay travellers (remote workers, digital nomads).
For private investors, this can potentially translate into:
- attractive gross rental income, especially in coastal areas and well‑connected neighbourhoods;
- the possibility of combining short‑term rentals in high season with medium‑term lets in low season;
- good visibility over future demand, as long as the archipelago continues to be perceived as a safe and accessible destination.
However, nothing is automatic: returns depend heavily on the exact location, the quality of the property, the management and… the regulatory framework.
The median budgets observed among foreign buyers in the provinces of Tenerife and Las Palmas also show that many projects are built around hybrid use: personal occupation for a few weeks a year, the rest of the time let out, with the property (size, features, location) calibrated to remain attractive all year round.
Local regulations: a key issue to monitor island by island and city by city
As in many highly touristic destinations, local regulations on short‑term rentals are evolving regularly in the Canary Islands.
Depending on the municipality and the island, you may encounter:
- areas where short‑term tourist rentals are authorised but regulated (licence, registration, specific standards);
- areas where new restrictions are being introduced to protect the local residential market;
- buildings governed by condominium rules that prohibit some or all tourist rentals.
Before buying, it is essential to:
- check the municipality’s urban planning rules and the areas where tourist rentals are permitted;
- review the condominium regulations if you are buying an apartment;
- consult a local professional (lawyer, gestor, real estate agent) to secure your rental strategy.
For those who mainly want to live on site and only let occasionally, these limitations are often less problematic, but it is still wise to take them into account in order to preserve the medium‑ and long‑term liquidity of the asset.
In summary, the income potential in the Canary Islands remains attractive in 2026, but it needs to be assessed with a fine‑grained approach, island by island and neighbourhood by neighbourhood. 🏝️
