What incentives are there to invest and build housing in the Canary Islands?

Incentives to invest and build housing in the Canary Islands are currently marking a turning point in the residential market of the archipelago, with a reactivation in construction that has not been seen since 2009, according to the Canary Islands Housing Observatory (OBVIA).

The Government of the Canary Islands announced that the archipelago closed 2025 with more than 5,000 public housing units completed or under construction. This is a significant figure within the structural housing shortage affecting the community.

Housing production in the Canary Islands is growing, both public and private. In addition, recent regulatory measures make 2026 a key moment to invest or promote housing in the islands.

Incentives to invest and build housing in the Canary Islands by 2026

Current incentives to invest and build housing in the Canary Islands

Among the policies in place to encourage residential construction and development are the following:

• The Decree-Law for the Streamlining of the Processing of Urban Development Licenses and the Promotion of Housing Construction, approved in April 2025 by the Government of the Canary Islands, which allows municipalities to grant building permits with full legal guarantees in a period of less than six months. This regulation significantly facilitates the viability of new residential projects.
• The Canary Islands Government’s broader strategy, described as “the biggest transformation of housing policies in the last decade”, which includes land mobilization, public housing stimulus, affordable housing measures, vacant housing mobilization, and public-private partnerships.
• Regulatory adaptations aimed at “incentivized affordable housing”, a mechanism designed to provide housing for the middle classes through more accessible conditions in private development.

These policies seek to overcome the traditional obstacles of the real estate market, such as the slowness of procedures or the lack of available land. They also aim to create a more favorable regulatory and financial environment for investors, developers and buyers.

How these incentives affect Fuerteventura

Relevance for Fuerteventura: opportunity for new construction and private investment.

AQUA 360 by LandCo, a new private residential development located on the Paseo de Bristol, facing the Atlantic Ocean, in one of the most coveted locations in Fuerteventura.

In the case of Fuerteventura, an island with strong residential, tourist and second home demand, these incentives represent a clear opportunity:

The push for public and affordable housing can relieve pressure on residential supply, but it also legitimizes the development of free housing, a context of stability that benefits private developers.

The real estate market in the Canary Islands is in a moment of dynamism and growth. Therefore, new construction in areas with real demand can offer a positive return for investors.

The streamlining of licenses and the easing of regulations reduce barriers to entry, shorten execution times and reduce the risk inherent in real estate projects in the archipelago.

DestinyHome, with a portfolio of developments and experience in new construction on the island, is well positioned to channel demand and accompany projects adapted to this new framework.

Example of a real opportunity: new construction Costa Lobos in Villaverde, Fuerteventura

DestinyHome markets the Costa Lobos development in Casilla de Costa, Villaverde, a residential area in the north of Fuerteventura. It is a set of townhouses that fits directly with the type of development driven by the approved measures, being new construction in an area with high demand and availability of services.

Promotion highlights:

• Group of 36 semi-detached houses.
• Current availability: 11 units.
• First floor or duplex typologies, with two bedrooms and two bathrooms.
• Scheduled delivery: May 2026.
• Communal swimming pool, green areas and garages on the plot.
• Price from 267,000 €.

Costa Lobos represents the type of residential project that is expected to gain prominence thanks to the current regulatory environment: developments that benefit from a more agile administration and a market with a proven need for new housing.

A favorable time to invest and build in the Canary Islands

The set of measures described above, together with the already visible reactivation of residential construction, has created a more agile, secure and attractive environment for investing and building housing in the Canary Islands.

For those analyzing real estate opportunities in 2026, the combination of:

• regulatory incentives,
• growth in demand,
• and availability of new construction in strategic areas such as Fuerteventura,

The Canary Islands market is a solid option for investment and home purchase.

DestinyHome advises investors and buyers who want access to new homes in a market with growth potential. If you want us to advise you, you can fill out the form and we will contact you.