Meeting the Growing Demand for Housing in Lanzarote and Beyond
It’s no secret that the Canary Islands have become one of Europe’s most desirable places to live, invest, and holiday. With year-round sunshine, a relaxed island lifestyle, and breathtaking landscapes, the appeal of these islands is stronger than ever. However, with growing demand comes a growing challenge: there simply aren’t enough properties to meet the needs of those wishing to call the Canary Islands home — and Lanzarote is feeling this pressure more than most.
The Reality of the Current Housing Situation
Over the past few years, the property market in Lanzarote and the wider Canary Islands has seen a sharp increase in demand, driven by both international buyers and local residents looking for permanent homes. But the number of available properties hasn’t kept pace with this surge in interest.
This imbalance between supply and demand is one of the key reasons property prices across the islands have risen so significantly. In fact, experts predict that property sales in the Canary Islands will rise by 8.2% in 2025, with property prices increasing by a further 12%. In popular locations like Lanzarote, where space for new construction is limited and protected natural areas restrict expansion, this issue becomes even more pressing.
A Challenging Time for Local Residents
Whilst the islands continue to attract overseas buyers, the lack of available housing has had a real impact on local residents. Both in the rental market and for those looking to buy, finding affordable accommodation has become increasingly difficult.
Rental prices in particular have soared, with many long-term residents struggling to compete with the short-term holiday rental market. Meanwhile, younger generations and local families face a tough reality: there simply aren’t enough properties available to meet their needs, whether they are first-time buyers or searching for a family home.
This housing shortage is not only a challenge for individuals — it affects the economy too. Businesses looking to attract staff to the islands face difficulties when their employees can’t find somewhere to live. Essential workers, from teachers to healthcare professionals, are impacted by the lack of affordable homes.
Why More New Builds Are Essential
The solution to this growing problem is clear: more homes need to be built. New build developments offer a sustainable and forward-thinking approach to easing the housing shortage across the Canary Islands.
Unlike older properties, new builds are often designed to meet modern standards of comfort and energy efficiency, making them an appealing choice for today’s buyers and renters. Furthermore, by increasing the supply of quality homes, we can help stabilise property prices and create a more balanced market that works for everyone — locals and international buyers alike.
How KPG New Homes Is Part of the Solution
At KPG New Homes, we understand the vital role new developments play in addressing the housing challenges facing Lanzarote and the wider Canary Islands. Our mission is to create high-quality, stylish, and sustainable homes that meet the needs of modern island living.
We specialise in sourcing and promoting new build properties in some of Lanzarote’s most desirable locations, working closely with trusted developers to bring thoughtfully designed homes to the market. Whether you’re a first-time buyer, an investor, or looking for your dream home in the sun, our team is here to help you navigate this dynamic property landscape.
Looking to the Future
The need for more homes in Lanzarote and the Canary Islands has never been greater. As demand continues to rise, creating new housing opportunities will be essential in ensuring that the islands remain vibrant, accessible, and welcoming places to live.
If you’re considering a property investment or searching for a new home in Lanzarote, discover how KPG New Homes can help you find the perfect new build property to suit your lifestyle and budget. Together, we can build a brighter future for Lanzarote and its residents.
