CANARY ISLANDS PROPERTY MARKET: FEWER HOMES ARE SELLING AS HOUSE PRICES CONTINUE TO RISE
The Canary Islands property market is showing a striking contrast this autumn: fewer homes are changing hands, yet house prices continue to move higher.
Fresh figures for July 2026 from the General Council of Notaries show that home sales in the Canary Islands fell by 6.9% compared with July 2025. At the same time, the average price recorded in property transactions rose by 18.8%, reaching €2,453 per square metre.
For anyone living in Lanzarote, planning a move to the island or simply keeping an eye on the Canary Islands housing market, the figures highlight just how tight the supply of homes has become.
WHAT IS HAPPENING TO HOUSE SALES IN THE CANARY ISLANDS?
The latest notarial figures point to a reduction in the number of property transactions across the Canary Islands. July continued a run of weaker sales, with the exception of April earlier in the year.
According to the latest figures reported by the notaries, sales in the Canary Islands fell by 6.9% year-on-year in July. This followed declines of 12.2% in May and 8.1% in June.
That does not necessarily mean that demand for Canary Islands property has disappeared. A market can record fewer completed sales when there simply are not enough suitable homes available, particularly in areas where buyers continue to compete for properties.
WHY ARE CANARY ISLANDS HOUSE PRICES STILL RISING?
The most eye-catching part of the latest figures is the price increase.
The average price of homes sold in the Canary Islands reached €2,453 per square metre in July, an annual increase of 18.8%.
That is a significant movement, but it is important to remember that an average price does not mean every property has increased by 18.8%. Property values vary enormously between islands, municipalities, neighbourhoods, property types, views, condition and proximity to the coast.
Official Canary Islands statistics also show that the wider upward trend is continuing. ISTAC reported that the average assessed value of free-market homes in the archipelago reached €2,279.40 per square metre in the second quarter of 2026, up 14.2% from a year earlier.
The official house price index showed annual growth of 11.9% for new homes and 11% for second-hand homes in the Canary Islands during the second quarter.
LANZAROTE AND THE HOUSING MARKET
For Lanzarote residents and visitors considering buying a property, the national headline figures do not tell the whole story.
Lanzarote has its own property market, with prices affected by location, tourism demand, limited land, the type of property available and the attraction of living on an island with year-round international interest.
Areas such as Puerto del Carmen, Playa Blanca, Costa Teguise and other popular parts of Lanzarote can have very different property values even when they are only a relatively short distance apart.
A sea view, swimming pool, outdoor space, renovation standard and tourist-oriented location can all make a substantial difference to the price of an individual property.
FOREIGN BUYERS REMAIN AN IMPORTANT PART OF THE CANARY ISLANDS MARKET
Foreign purchasers are also an important part of the property story in the Canary Islands.
Data presented by the Colegio Notarial de Canarias showed that foreign buyers accounted for 36.3% of property purchases in the archipelago during 2025. The largest groups included Italian, German and British purchasers.
That helps explain why the Canary Islands housing market cannot be viewed solely through the lens of local demand. The islands attract people looking for permanent homes, holiday properties, investment opportunities and places to relocate.
For Lanzarote, international interest is particularly relevant because the island has a long-established overseas community and a large tourism economy.
WHAT ABOUT MORTGAGES?
The latest figures also show a cooling in mortgage activity.
Housing-loan mortgages in the Canary Islands fell by around 7.9% in July compared with the same month a year earlier, according to the latest notarial data.
Again, this needs to be interpreted carefully. A fall in mortgage lending does not automatically mean that buyers have disappeared. Purchasers can use cash, existing equity or other forms of finance, while higher prices can also change the number of people able to enter the market.
WHAT DOES THIS MEAN FOR PEOPLE LOOKING TO BUY IN LANZAROTE?
For potential buyers, the current Canary Islands property market is one where patience and research are particularly important.
There are fewer properties changing hands, while the latest data show strong price growth. That combination can make finding the right home more difficult, especially in popular coastal areas.
Anyone considering buying property in Lanzarote should look beyond asking prices and compare recent completed sales where possible. The asking price of a property is not necessarily the price ultimately agreed between buyer and seller.
It is also worth checking the property's legal status, community fees where applicable, planning information, taxes, potential rental restrictions and any renovation requirements before committing to a purchase.
AND WHAT DOES IT MEAN FOR SELLERS?
For homeowners thinking about selling, the latest figures suggest that there remains considerable value in the Canary Islands property market.
However, a rising market does not mean every property can command any price. Buyers are becoming increasingly sensitive to value, and properties requiring significant work may behave very differently from modern, well-presented homes in sought-after locations.
Correct pricing remains important. An unrealistic asking price can leave a property sitting on the market even when demand exists.
THE BIGGER PICTURE
The latest Canary Islands property figures paint a more complicated picture than simply saying that the market is booming or slowing down.
Sales volumes are falling, but prices are rising strongly. Official Canary Islands statistics also show substantial annual increases in both new-build and second-hand property values.
The most likely explanation is a market where available housing is struggling to keep pace with demand. The result is that fewer transactions can take place while competition for the properties that do come onto the market keeps prices elevated.
The next few months should reveal whether the fall in sales is temporary or becomes a longer-term trend — and whether the rapid rise in Canary Islands house prices begins to moderate.
