ISTAC confirms that May was a key month for La Palma, which has reduced its mortgage decline from 13.6% to a symbolic 1% less in signed mortgages so far this year.
The mortgage market in La Palma has undergone a radical turnaround in just one month. According to data from the Canary Islands Statistics Institute (ISTAC) updated to May, the island has gone from leading the decline in mortgages in the Canaries with a 13.6% less until April to reducing the accumulated drop to a symbolic 1% between January and May. The key lies in a particularly active May, which has reversed the negative trend of the early months of the year.
May, the month that changed the trend
In May, 1,502 mortgages were signed in the Canaries, 16.5% more than in the same month of 2025. The rebound was widespread across all islands except Lanzarote (-6.3%) and La Gomera (-50%), placing La Palma among those that recorded increases. This positive behaviour in May has allowed the island to drastically reduce the accumulated decline, which until April was the most pronounced in the archipelago.
ISTAC has not yet broken down the absolute number of mortgages by island in May, but the change in the accumulated percentage confirms that the La Palma market has regained its momentum. In the first four months of the year, the island had signed only 76 mortgages, far behind the pace of 2025, when 88 operations were recorded in the same period.
Contrast with the rest of the Canaries
Between January and May, four of the seven Canary Islands have accumulated declines in mortgage signings: Fuerteventura (-36.1%), La Gomera (-38.2%), Tenerife (-8.7%) and La Palma (-1%). On the opposite side, El Hierro grows by 70% (although this only amounts to 17 mortgages in absolute terms) and Lanzarote rises by 47.7%, increasing from 461 to 681 operations. Gran Canaria, with 2,919 mortgages, remains the island with the highest volume and records a growth of 12.3%.
In the whole of the Canaries, between January and May, 7,034 mortgages were signed, 0.2% less than in the same period of 2025. This figure reflects general stability, although with marked differences between islands.
Money concentrated in the capital islands
The capital lent continues to be concentrated in Tenerife and Gran Canaria. Between January and May, both islands accounted for 488.1 million and 418.7 million euros respectively, representing 82.5% of the total mortgage amount in the Canaries. Just in May, the capital lent amounted to 262.5 million euros, 46.3% more than a year earlier, in line with the widespread rebound of the month.
For the residents of La Palma, the improvement in mortgage data represents a relief after a challenging start to the year. The island, which came from a 2025 with a loan granting pace lower than the Canary average, seems to have regained the confidence of banks and buyers. The next ISTAC report, with data for June, will confirm whether the upward trend consolidates or if May was just an illusion.
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