Else Beekman
Accessing affordable housing in the Canary Islands has become a nearly impossible task for many. With rising rents and limited availability, residents are struggling to find stable homes. However, an innovative solution is emerging with an NGO as the initiator.
The non-governmental organisation (NGO) Provivienda is stepping in to bridge the gap by purchasing properties and offering them for rent at just €300 a month, providing relief for vulnerable families.
The housing crisis in the Canary Islands
Spain has long faced a housing affordability crisis. Major cities like Madrid, Barcelona, and parts of the Canary Islands are experiencing high demand and limited supply. This recent year, the situation has worsened, exacerbated by the pressures of mass tourism and its impact on the rental market. In some areas, workers are resorting to living in motorhomes or even tents due to the unaffordability of local housing. An example is the Tenerife-based couple, Daniel Acosta and Nayra Mesa, who in 2020 were forced to exchange their comfortable home for a 12-metre motorhome. Daniel, a businessman and filmmaker, and Nayra, a writer and journalist, both found that this lifestyle offered them more freedom and less stress about money. Furthermore, another person earning around €1,300 a month who could not afford to rent in southern Tenerife opted to live in a caravan as a more affordable solution.
How does the scheme work?
In response to this dire situation, Provivienda has taken the bold step of purchasing properties in the open market to rent them out at a much lower cost to those who need it most. They ask around €340 per month. The properties are renovated before being leased to people on the public housing demand registry in the Canary Islands. Above that, renters are required to commit to a seven-year lease, with the option to extend their contracts for several decades.
For Spain, this is a groundbreaking initiative. Fernando Rodríguez, a representative of Provivienda, highlights it as “pioneering” in the country. He explains the goal is to address one of the most pressing structural problems in the Canary Islands: the lack of affordable rental housing. Consequently, in 2024, the NGO managed to rent out 40 properties, and by the end of this year, Rodríguez hopes to offer nearly 100 homes under this social rental programme.
Partnerships and funding
Provivienda is not alone in this initiative. The Canary Islands government has committed to investing €6.2 million in 2023 to purchase 76 properties for affordable rentals. This funding, provided through a partnership between Provivienda and the government, will help increase the availability of social housing in high-demand areas. They shared the cost of purchasing of the 76 homes, with 60% funded by public resources and 40% by the NGO.
Criteria for tenants
To ensure that the homes go to those most in need, Provivienda has set clear criteria for tenants. For instance, the annual income of the households must not exceed three times the IPREM (Public Income Index) in order to qualify. This ensures that the programme benefits families who are struggling to access the private housing market.
Addressing the underlying issues
The housing situation in the Canary Islands is part of a larger national issue. Especially in tourist areas, rising rents and the effects of touristification making it increasingly difficult for local residents to find affordable homes. In Santa Cruz de Tenerife, the average rent per square metre has risen by 13.5% in the past year. Meanwhile, Las Palmas has seen an 8.4% increase. Both far exceed the €5 per square metre set by the social rental programme, highlighting the growing affordability gap.
The province has witnessed protests due to these housing issues, and organisations like Provivienda are stepping up to provide much-needed relief.