Living costs in the Canary Islands: Why rent, bills and groceries are climbing

A new look at the islands shows big differences in housing, food and utility costs from one place to another

Living in the Canary Islands is no longer cheap, especially for people earning local salaries. Rent has risen for four straight years, groceries are up 34% since 2021, and electricity bills are still putting pressure on household budgets.

The picture is not the same across the archipelago, though. Each island has its own market, its own pressures and its own price tag. Lanzarote is very different from El Hierro, and renting in a tourist area in Fuerteventura is not the same as living in a residential part of La Laguna.

Rent is the clearest example of the squeeze. In Las Palmas de Gran Canaria and Santa Cruz de Tenerife, the two main capital cities, demand is especially strong. In Las Palmas, a one-bedroom flat in a typical area costs around €700-€900 a month, while on the outskirts the price drops to €600-€700. In central areas, one-bedroom rents can run from €650 to €900, with outlying areas falling to €500-€650.

Santa Cruz de Tenerife shows similar figures, with a one-bedroom flat in the city around €700 a month.

La Laguna, once seen as more affordable, is also becoming more expensive. Both capitals now share an average rental price of €14.6 per square metre, and Santa Cruz recorded one of the biggest rent rises in Spain last year at 15.2%.

The tourist islands bring another layer of pressure. Lanzarote has seen prices rise as supply has tightened, with the average rent at €11.97 per square metre. A 60 square metre flat there costs around €720 a month. In Fuerteventura, the average rent is €980, though the market varies sharply between tourist areas and inland towns.

The smaller islands still offer lower rents. On La Palma, a two-bedroom flat in Santa Cruz costs between €500 and €700. In La Gomera, long-term rentals in San Sebastián start at €450. El Hierro remains one of the more affordable places, although opportunities and connections are more limited.

Electricity is another concern. The price per kilowatt hour is the same as on the mainland, but the annual bill for an average user on a regulated tariff reached almost €976 in 2025, up 15.5% on the year before. The milder climate does reduce heating costs, but it does not remove the pressure entirely.

Food shopping has also become more expensive. The OCU ranks Las Palmas de Gran Canaria among the most expensive cities in Spain for groceries, and several Canarian municipalities have annual food bills above €6,000 per household. In just four years, the basic food basket has climbed by 34%. 

In the end, there is no single cost of living in the Canary Islands. The reality depends very much on which island you choose, where you live and how close you are to jobs, services and transport.

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