The price per square meter has fallen to 9.40 euros
Canary Islands – According to a study by the property portal fotocasa.es, rental prices in the Canary Islands have fallen by 3.5% compared to 2019 as a result of the crisis. In recent years there has been a steady rise in rents, which has now been interrupted.
The average price per square meter on the islands leveled off at 9.40 euros in 2020, which corresponds to a rent of 714 euros for a 70 square meter apartment. In the previous five years, according to fotocasa, the price per square meter had risen steadily, from 6.60 euros in 2015 to 9.70 euros in 2019. Broken down by provinces, rents in Las Palmas de Gran Canaria (including Fuerteventura and Lanzarote) rose by 2% dropped and in Santa Cruz de Tenerife (Tenerife, La Palma, La Gomera, El Hierro) by 4.2%.
Experts say that the prices for new rentals continue to go down and that even after renovations, landlords tend not to increase the rent. This is especially true if the tenants are reliable payers who they would like to keep in the apartment.
One of the main reasons for the falling rents is the growing housing supply. Since fewer tourists are coming to the islands due to the pandemic crisis, around a quarter of the holiday apartments have been given long-term rentals again. Especially those owners who still have to service a mortgage have decided to take this step.
Another reason is that many young people had to move back to their parents and rent their apartments to finance the mortgage payments after they became unemployed due to the corona crisis and no longer had their own income.
