Usually, the drive into Santa Cruz is a bit of a battle, but the real struggle these days isn’t on the TF-1… it’s in the property listings.
As you might know, I record a video called the Tenerife Property Market Snapshot every month, this is a snapshot of the property market in the south…of the main areas that I dealw ith for property sales…I report on the average asking prices for Arona, Los Cristianos, Adeje, Las Americas and Costa Adeje.
Recently I’ve been looking at the latest data but for Santa Cruz, and it’s got to be said: what’s happening in Santa Cruz de Tenerife right now is nothing short of madness.
While we all know the south of the island has its own micro-climate of high prices, the capital has suddenly become the epicentre of a national surge…national as in…throughout Spain!!
We aren’t just leading the pack in the Canaries; Santa Cruz is currently recording the highest year-on-year house price increase in the entire country, hitting a staggering 34.1% rise.
Breaking Down the Numbers in Santa Cruz de Tenerife
Trying to make sense of the local market can be mind-numbing, but the figures for the city are very specific.
The average price per square metre in Santa Cruz has climbed to around 3,666€….a paltry sum in comparison to the south, but it’s the increase that’s surprised me.
To put that 3,666€ into real-world terms, if you’re looking for a standard 80m² apartment, you’re now facing a price tag of roughly €293,280.
For comparison, just across the water in Las Palmas, a similar home would cost you about €216,320.
It’s a massive gap that’s opened up in a very short space of time.
A National Trend (But We’re Winning the Race)
It isn’t just our little corner of the world feeling the heat, though we are definitely setting the pace. Across the 50 provincial capitals analysed, every single one saw prices climb compared to last year.
In 28 of those cities, the rise was over 10%, which shows you just how much pressure is building up in the Spanish market.
When you look at things at the provincial level, the story is much the same. A total of 25 provinces reported increases of more than 10%.
While Santa Cruz de Tenerife as a province saw a significant jump of 23.9%, other areas are also seeing heavy movement:
- Valencia: 25.6%
- Murcia: 24.4%
- Las Palmas: 15.8%
Why the Sudden Surge?
Not the most exciting topic, I know, but it matters because it’s changing the face of the city. This “perfect storm” of high demand and zero supply has pushed prices in the Canary Islands to historic highs.
Experts are pointing to a few different gears turning at once: increased demand, a lack of available homes on the market, and the heavy influence of the tourism and investment sectors.
When you have more people wanting a slice of the island than there are actual slices available, this is what happens.
It’s basic math, but it doesn’t make it any less frustrating for someone just trying to find a decent place to live.
Navigating the Madness
If you’re looking at the market right now, my advice is to stay sharp. You’ll see plenty of listings that are overpriced or just plain out of date…this happens a lot.
Some agents will take on anything at the owner’s “dream” price, which doesn’t help anyone.
That’s something I’ll come back to in the future, especially with how these prices are reigniting the debate over housing accessibility for locals and expats alike.
For now, if you’re buying in Santa Cruz, expect a bit of a scrap.
