The desire of many people to own a home in sunny Spain has caused great consternation among locals and the government, particularly in the Canary Islands.

Foreigners, including Britons, buying property in the Canary Islands have made the region’s property market, including property prices, unsustainable.

Canary Islands spokesperson Alfonso Cabello urged the government to take “courageous decisions” to address the growing situation.

According to a mortgage study carried out by Idealista, the demand for mortgages from non-residents of the Canary Islands represents 7.7 percent of the national total.

This makes the Canary Islands the fifth region in Spain in terms of mortgage loan applications from foreigners.

This is why the Canary Islands government is now considering strict new measures to limit the purchase of new homes by non-residents, according to Canarian Weekly.

The new measures will be part of a wider initiative to address the growing housing crisis in the Canary Islands, including the demographic challenges endured by the region’s residents.

Growing demand for property from foreign buyers and the growing impact of holiday rentals in residential complexes and areas on local housing availability have fueled demands for the government to do more.

The government has taken note of this and will consider exploring further measures within a parliamentary committee.

Parliamentary committee chairman Casimiro Curbelo reiterated that restrictions on non-resident home buyers were necessary.

Curbelo added that despite the need to tackle this problem, a cautious approach would also be necessary in order to align with European Union regulations.

These regulations state that Spain can impose restrictions on non-EU residents purchasing property. However, these restrictions must be based on clear, strict and non-discriminatory criteria.

One solution to the housing crisis in the Canary Islands could be to impose stricter rules for non-residents when trying to buy a house, to ensure that the island can exploit its full potential, without letting property prices beyond the reach of local residents.

According to Statista, Santa Cruz de Tenerife has the highest average house price in the Spanish Canary Islands region as of December 2023, exceeding £2,093 (2,500 euros) per square meter.

Cabello further highlighted that in islands like Lanzarote and Fuerteventura, population growth driven by non-residents has now exceeded that of native Canarians, believing that this is an unsustainable trajectory.

Demand for mortgages from foreigners in the Canary Islands has just outpaced that of other regions, including Madrid (9 percent), Catalonia (15.9 percent), Andalusia (20 percent) and Valencia (28 percent). .4 percent), according to the Idealista mortgage study.

The conclusions on these new measures to tackle the housing crisis in the Canary Islands are currently open for public consultation with a follow-up planned for November.