Rental prices skyrocket and reach all-time highs

Rental prices have reached record highs this summer in the two Canarian capitals due to increased demand. / Arcadio Suarez

In Las Palmas de Gran Canaria it is impossible to find a home for less than 550 euros, not even in the neighborhoods far from the center

Silvia Fernandez

The
rental price has skyrocketed this summer in the Canary Islands as a result of a growing demand and a supply of housing that has been reduced in part due to the good times in the real estate market and that has boosted sales.

The rise that has occurred and is higher than two digits has led the
prices at historical highsabove those registered before covid and in the boom years prior to the Great Recession.

The rebound in prices is practically generalized in all the municipalities of the islands, although it is in the capitals and south of the archipelago where the rise has been more intense, according to the data it handles.
Idealistic. In the capital of Gran Canaria, the square meter has been located at almost 11 euros on average, while in Mogán it is close to 15 euros and 16 in San Bartolomé de Tirajana.

For less than 550 euros you will not find anything, not even in the neighborhoods

Currently and as indicated by different sources from the real estate sector consulted, in Las Palmas de Gran Canaria it is "practically impossible" to find a decent rental home for less than 550 euros, not even in the neighborhoods furthest from the center. In the lower city, the minimum price of a two-bedroom apartment is around 700 euros and from there, upwards.

"We are at a time when the
sets the price is the owner. He is the one who rules in the market”, says the Era Grupo Arcoiris broker,
Raphael Bello.

The head of the real estate firm
Venportucasa, Jose Saavedra, assures that the demand is so strong in the capital of Gran Canaria that up to 60 requests can be received in a week with a bill of housing for rent. As he explains, around 70%-75% of those looking for a house in Las Palmas de Gran Canaria want it to be in the center.

Demand has grown between 15% and 20%

The rebound in demand in recent months, which is estimated at between 15% and 20%, responds to different factors.

Saavedra points to a
"structural issue and not conjunctural», in the sense that we are facing a change of mentality in the new generations who do not want to buy but live for rent. Added to this is a transfer of customers who were going to buy but who, given the prospect of rising interest rates and market exchange rates, entered into the lease.

For Bello, there is another element that is inflating demand and that is the arrival on the islands of
telecommuters who are looking for a house. “Digital nomads are a type of client that didn't exist a few years ago and that now pulls the market hard,” he says.

In addition to young people seeking to become independent, the demand has been strengthened by older and retired people who change their residence to the capital to be closer to services. In these cases, they look for central streets, not peripheral neighborhoods. "Before covid, the rental market had entered a phase of stability, but in recent months the demand has grown a lot and pushed prices up," says Saavedra.

On the housing supply side, there has been a slight decrease in recent months. The fear of a rise in rates encouraged the real estate market and has led some owners to sell by cutting the
offer for rent. The gap is not being filled with new housing because construction levels are low.

On this occasion the
holiday home it is not a cause of the lower number of the offer for rent. According to Saavedra and Bello, despite the improvement in the arrival of tourists, not many owners are changing to vacation rentals. “Many of them have realized that managing a vacation rental is complex and takes time. In addition, with the covid, many entered this segment and have realized its advantages," says Saavedra.

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