Bank delinquency in southern Gran Canaria has experienced a sustained increase over the last year, causing alarm among financial institutions, local business owners, and representatives of the tourism sector, according to data cross-referencing the Bank of Spain's financial statements and inquiries made by Maspalomas24H among financial circles in the south of the island. According to estimates by financial institutions with local structures, the default rate on non-performing commercial credit exceeds "no longer moderate."
Areas such as San Bartolomé de Tirajana and Mogán, traditionally associated with economic dynamism thanks to tourism, have begun to show signs of financial strain in certain credit segments, especially among SMEs in the service sector, small tourist accommodation owners, and individuals with mortgages on vacation homes. Stability in southern Gran Canaria—the island's economic engine—also depends on containing the shadow of default.
According to data collected by industry sources, the default rate on personal and business loans has increased by between 1,5 and 2 percentage points compared to the previous year. Although the overall default rate remains below the national average, the increase is significant in a region whose economic structure depends largely on tourism and foreign investment.
The causes are multiple: cumulative inflation over the last two years, rising costs of basic supplies and services, and a slowdown in vacation rental profitability due to market saturation. Added to this is growing regulatory pressure, such as regulatory requirements for vacation homes and sustainability plans, which have raised operating costs.
"Many small property owners who invested in sea-view apartments, hoping for quick returns, are now struggling to cover mortgage payments and community fees," notes a financial analyst in Maspalomas. "If the tourism model doesn't diversify or stabilize, these defaults could become a structural phenomenon."
Banks and other savings institutions have begun to tighten lending criteria for vacation rentals and are strengthening their recovery departments, while offering one-off refinancing to solvent clients facing temporary liquidity constraints. The concern goes beyond bank balance sheets: a wave of foreclosures could affect the local real estate market, alter foreign investor perceptions, and ultimately negatively impact the image of Gran Canaria as a destination.
