Canary Islands Rental Prices Ease Slightly – But Finding a Home Remains a Challenge
The Canary Islands rental market showed a small drop in average asking prices during July 2026, offering a rare pause after years of sharp increases. However, despite the monthly decline, the region remains one of the most expensive places to rent in Spain, and finding affordable long-term accommodation continues to be a major challenge for many residents.
According to the latest housing market data, the average asking rent across the Canary Islands stood at €13.29 per square metre in July, representing a 0.41% decrease compared with June. Although prices dipped slightly month-on-month, rents were still 1.32% higher than they were in July 2025, highlighting that housing costs continue to trend upwards over the longer term.
Canary Islands Still Among Spain’s Most Expensive Rental Regions
Even with the modest monthly reduction, the Canary Islands remain the fifth most expensive autonomous community in Spain for rental prices.
Across Spain as a whole, the average rental price reached €14.82 per square metre, with national rents continuing to climb. This means that while rental growth in the Canary Islands has slowed compared with other regions, tenants are still paying significantly more than they were just a few years ago.
Why Are Rents Still So High?
Property experts say the biggest issue is no longer simply rising prices—it’s the lack of available homes.
Demand for long-term rentals continues to outstrip supply across many parts of the Canary Islands. A combination of population growth, tourism-related employment, remote workers and limited housing stock has created intense competition for available properties.
This shortage is particularly noticeable in popular tourist destinations, including Lanzarote, where many local workers report struggling to find affordable year-round accommodation.
What Does This Mean for Lanzarote?
For residents of Lanzarote, the latest figures may offer a small sign that rapid rent increases are beginning to slow. However, the reality on the ground remains difficult, with many homes receiving multiple enquiries shortly after being advertised.
For tourists considering spending several months on the island, or digital nomads looking to relocate, it’s becoming increasingly important to arrange accommodation well in advance, particularly in high-demand areas such as:
- Puerto del Carmen
- Costa Teguise
- Playa Blanca
- Arrecife
Long-term rental availability remains limited throughout much of the island.
Will Rental Prices Fall Further?
While July brought a slight reduction in asking rents, housing analysts believe the market will largely depend on whether more long-term properties become available.
Without a significant increase in housing supply, experts suggest rental prices are likely to remain relatively high despite occasional monthly fluctuations. The imbalance between supply and demand continues to be the biggest factor influencing the Canary Islands property market.
