The Canary Islands recorded their strongest year for private home builds in 14 years during 2025, but experts warn that construction levels remain well below what is needed to tackle the region’s ongoing housing crisis.
According to the latest figures from Spain’s Ministry of Housing, a total of 3,152 privately built homes were completed across the archipelago last year. While that represents the highest figure since 2011, it still covers only around one-third of the estimated 10,000 homes needed annually to meet demand and ease pressure on the housing market.
The figures highlight the continuing gap between the number of homes available and the growing demand for housing across the islands. Although construction activity has improved compared with recent years, it remains a fraction of the levels seen before the 2008 property crash, when nearly 30,000 homes were completed in a single year.
There was also positive news in terms of new developments getting underway. During 2025, construction officially started on 4,666 private homes, the highest number since 2008 and the strongest figure recorded in 17 years.
Despite the increase, the pace of building continues to be affected by several challenges, including rising costs, lengthy construction times and economic uncertainty. Developers are also facing concerns over higher material and transport costs linked to ongoing tensions in the Middle East, which have increased costs throughout the global supply chain.
Industry leaders warn that construction firms are operating on very slim profit margins, making it difficult to absorb further price increases. Some developers may push ahead with projects before costs rise further, while others could delay or suspend plans if building becomes financially unviable.
These pressures are already being reflected in property prices. House prices in the Canary Islands continued to rise at double-digit rates during the first quarter of 2026, adding further strain for residents struggling to find affordable housing.
Although the annual figures suggest improvement, the data also reveals how fragile the sector remains. December recorded the weakest month of 2025, with just 69 private homes completed across the islands, an 83% drop compared with the same month a year earlier.
The Canary Islands are bucking the national trend, however. Across Spain, the number of completed private homes fell by 6.7% during 2025. In contrast, the islands saw a 9.1% increase, with 263 more homes completed than in 2024.
For residents and prospective buyers, the figures offer some encouragement that more housing is being built. However, with demand continuing to outstrip supply by a huge margin, the housing shortage remains one of the biggest challenges facing the Canary Islands.
