This is one of those statements that sounds simple, but carries a lot of weight.
The Canary Islands’ Minister for Public Works, Pablo Rodríguez, has publicly encouraged the tourism sector to invest its profits into building housing, particularly protected and affordable homes across the islands.
The message is fairly blunt.
Private money is expected to help solve a public housing problem.
Rodríguez made the comments after meeting with the Círculo de Empresarios de Gran Canaria, describing the response from private companies as positive and suggesting this could help address what he openly admits is one of the biggest challenges facing Canary Islanders… access to housing.
Prices are rising faster than people can keep up
On the same day, Sociedad de Tasación published new figures showing that the price of newly built homes in the Canary Islands rose 6.7% compared to December last year.
That puts the average price at €2,028 per square metre, the highest level ever recorded.
Now add a few realities.
The Canary Islands have some of the lowest wages in Spain, and more than 30% of properties sold are bought by foreign buyers. None of this is news, but it explains why housing has moved to the top of the political agenda.
What is actually being built?
According to Rodríguez, there are currently more than 2,000 homes under construction across the islands, delivered through:
- ICAVI
- The Canary Islands Government
- The public company Visocan
The government’s core belief is that increasing supply will eventually bring prices down.
That’s the theory.
What hasn’t happened is just as important.
There have been no regional measures introduced to:
- Curb property speculation
- Limit accumulation by large owners or investment funds
- Restrict purchases for tourist use
- Bring back into use the more than 200,000 empty homes currently sitting unused across the islands
The construction sector has welcomed the current approach.
Convincing private investors is the main lever
Rodríguez has described one of the government’s key strategies as convincing private companies to build housing, particularly protected and affordable stock.
He says that strategy is starting to work.
Housing production increased by more than 4,000 homes in 2024, with over 5,000 new homes expected to enter production in 2025.
For context, between 2009 and 2023, the Canary Islands averaged around 1,000 new homes per year.
So yes, it’s a significant increase.
Even so, Rodríguez admits it’s still insufficient.
Tourism profits building homes?
One of the more eye-catching points was his hope that the tourism sector will reinvest its profits into housing construction, supported by incentives such as the Canary Islands Investment Reserve (RIC).
On paper, it makes sense.
In practice, asking tourism to shoulder the burden while avoiding tougher decisions on speculation and empty homes feels like only half the solution.
No magic solution, just pressure
Rodríguez was at least realistic about one thing. There’s no magic wand.
He described housing as a global problem and said the government is exploring several routes, including:
- Speeding up administrative processes
- Recovering closed homes for rental or sale
- Supporting renters, including €36 million in rental aid
He also expressed optimism that the Holiday Rental Law will help push some properties back into the long-term market.
That remains to be seen.
Foreign buyers and possible limits
On the sensitive topic of foreign buyers, Rodríguez said he is open to negotiating a formula that provides some protection for Canary Islanders trying to access housing.
He stated that the Canary Islands were initially alone in this position, but now have support from the Spanish government, which he believes improves the chances of progress.
Details, for now, are thin.
Business leaders want faster administration
The president of the Círculo de Empresarios de Gran Canaria, Juan Ramírez, supported the minister’s stance and called for a broad social pact focused on:
- Housing
- Talent
- Administrative efficiency
He also highlighted what many residents already know. The Canary Islands suffer from slow and outdated administration, something he described as a long-standing failure.
Faster processes, better training, digitalisation. Sensible ideas. Nothing revolutionary.
The bigger picture
Housing is now front and centre in Canary Islands politics.
Encouraging private investment may help. Increasing supply may help. But without addressing speculation, empty homes and demand pressures, it’s hard to see meaningful relief arriving quickly.
This debate isn’t going away.
