Canary Islands rental prices soar

Renting a property in the Canaries is now 28% more expensive than it was last year, according to the online platform www.pisos.com.

The average weekly rental price per square metre in the Canaries is now €12.42, above the Spanish average of €11.62. the year-on-year increase in rent is the highest in any of Spain’s autonomous communities.

Rent now accounts for almost 50% of the income of the average Canarian tenant, while official recommendations suggest that this share should not exceed 30%.

The main reason for the high rents is the lack of available properties for long-term residential rentals, resulting in a market that favours landlords. While the Canarian Government has announced various housebuilding plans, the results will not be immediate and are not expected to alleviate the situation significantly in the short term.

Canarian Vice President Manuel Domínguez, has announced that “one of the most powerful tax incentives of the Economic and Fiscal Regime (REF) is activated to contribute to alleviate the housing crisis on the islands, encouraging the private sector to invest in rental housing.”

The project will use the Canarian Investment Reserve (RIC) to channel investments from local companies and self-employed workers into the property market for around €2 billion.

However, Dominguéz stated that the project is “another measure to address the problem, but it is not the solution.”

The rental crisis has not been helped by a rush to register holiday rental properties before the Canarian Government passes its controversial new holiday rental law. Several thousand applications have been received by the authorities after the announcement of the new law, which will make the registration and assessment of holiday rentals extremely restrictive.

Canarian Tourist Minister Jessica de León has announced that the final draft of the law will be completed in June, and will include certain amendments, such as reducing the minimum area of rental properties from 39 m2 to 25 m2, which will permit more nonhotel properties to comply.