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Holiday rentals in Gran Canaria: Why is Maspalomas 50% cheaper than Arucas and how does the new regulation affect it?

Holiday rentals in Gran Canaria: Why is Maspalomas 50% cheaper than Arucas and how does the new regulation affect it?

GARA HERNÁNDEZ - M24H Monday, December 15, 2025

The distribution of the 40.387 holiday rental (VV) places in Gran Canaria, the third largest market in the Canary Islands, reveals an unbalanced concentration that is key to understanding the housing crisis and the regulatory response of 2025. The municipality of San Bartolomé de Tirajana (Maspalomas) dominates the sector, accounting for 36% of the total places on the island. It is followed by the capital, Las Palmas, with a significant 21%, and the tourist municipality of Mogán with 17%. 

These three areas account for three-quarters of the island's private tourism offerings, demonstrating that the impact of the vacation rental phenomenon is not uniform. Analyzing the Average Daily Rate (ADR) by municipality in Gran Canaria reveals an economic paradox. Contrary to what might be expected, the municipality with the most accommodation, San Bartolomé de Tirajana, charges an average of €138, a high price, but one far exceeded by smaller towns in the north and interior. The highest rate on the island is recorded in Arucas, at €282, almost 50% more than Maspalomas. 

Other municipalities like Firgas ($173) and Vega de San Mateo (€163) also exceed the average for major tourist areas. This suggests that the high ADRs in the north and inland areas correspond to a niche or premium offering (country estates, rural houses, etc.), while the major sun and beach areas (Maspalomas, Mogán) operate with more competitive prices due to the massive volume of supply.

The capital, Las Palmas, has a more moderate price range (€100), reflecting the use of short-term rentals in urban and urban beach settings (such as the small beach at Las Canteras, which does not have a Blue Flag), where it competes with long-term rentals. This price polarization—high volume and lower prices concentrated in the south; low volume and luxury prices in the north—is the real argument that has driven the new regulations. 

Politicians have identified that the capital's 21% housing stock, combined with higher prices in the interior, directly contributes to the displacement of residents from key urban and rural areas. The Canary Islands government's decision to introduce restrictive regulations, which have already led to a 9,4% year-on-year drop in Gran Canaria's total revenue, focuses on addressing this unbalanced distribution. Future licensing restrictions based on zones and saturation will particularly impact San Bartolomé de Tirajana and Las Palmas. The aim is to stem the housing drain in the capital and prevent further overcrowding in the south of the island, which is already generating high infrastructure costs, at the expense of the residential market.

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