The Canary Islands had the biggest property price increases in Spain in February

The Canary Islands experienced a 0.8% monthly increase in the price of second-hand homes in February, with a huge 23% year-on-year variation, setting the average price at 2,470 euros per square metre, according to data from the Fotocasa Real Estate Index. This 23% annual increase is the ninth consecutive month above 20% since June 2023.

"Property prices have risen significantly again. The demand continues to exert pressure on the supply, persisting in anticipation of potential price reductions and good opportunities. The discourse from the European Central Bank hinting at a possible interest rate cut before summer has further fuelled the market.”

“At present, the lack of supply also hinders any reduction in housing costs. These data indicate that 2024 will be a year of continued rising property prices, leading to increased inaccessibility," comments María Matos, Director of Studies and spokesperson for Fotocasa.

Analysing home prices compared to a year ago, 16 regions in Spain experienced a year-on-year price increase in February. The increases exceeding 10% affected five regions: the Canary Islands (23.0%), Madrid (14.8%), Region of Murcia (12.2%), Valencia (11.2%), and the Balearic Islands (11.0%). Other regions also observed notable increases.

Regarding price per square metre, Madrid and the Balearic Islands top the list with 3,928 euros/m² and 3,848 euros/m², respectively. The Canary Islands ranks fifth with prices at 2,470 euros/m².

Provincial and Municipal Breakdown:

Provinces:

- Santa Cruz de Tenerife saw the highest year-on-year increase at 29.9%, followed by Las Palmas with 13.3%.

- In terms of prices, Santa Cruz de Tenerife is the most expensive province at 2,793 euros/m², followed by Las Palmas at 2,109 euros/m².

Municipalities:

- In the 22 cities analysed by Fotocasa, all witnessed a year-on-year increase in the average price of second-hand homes.

- Eight municipalities recorded a year-on-year increase above 20%, including Guía de Isora (36.8%), La Orotava (28.8%), and Santa Lucía de Tirajana (25.4%).

- The cities with the highest price per square metre in February were Adeje (4,149 euros/m²), Guía de Isora (3,915 euros/m²), and Santiago del Teide (3,298 euros/m²).