Canary Islands public works tenders rise 37.1% as cement demand and mortgages grow
Public works tenders in the Canary Islands reached €886.1 million in the first half of 2026, up 37.1% year on year. Wholesale cement sales rose 7.8% to 316,002 tonnes, while housing mortgages increased 31.4% in June.
Public tenders reach €886.1 million
Construction and property activity in the Canary Islands accelerated during the first half of 2026, supported by a sharp increase in public procurement, stronger cement demand and rapid growth in housing finance. Vozpópuli reported that provisional public works tenders across the archipelago reached €886.1 million, 37.1% more than in the same period of 2025.
The expansion was unevenly distributed. Las Palmas accounted for 55.8% of the regional total, with €494.7 million of tenders, an increase of 57.2%. Santa Cruz de Tenerife registered €354.9 million, or 40.0% of the total, after growth of 8.3%. A further €36.5 million, equivalent to 4.1%, could not be assigned to an individual province.
Local authorities remained the largest contracting group, increasing tender volumes by 22.8% to €555.2 million. Of that amount, €338.9 million went to the eastern province and €213.4 million to the western province. Central government procurement grew fastest, rising 75.6% to €136.1 million, including €61.4 million in Las Palmas and €74.6 million in Tenerife. The regional administration raised tenders by 66.8% to €194.7 million, with €94.3 million in Las Palmas and €66.7 million in Tenerife.
Cement sales expose differences between islands
The procurement pipeline is already accompanied by higher consumption of construction materials. According to wholesale figures published by the Canary Islands Statistics Institute, ISTAC, cement sales increased 7.8% year on year to 316,002 tonnes in the first half, from 293,194 tonnes a year earlier.
Tenerife remained the largest market, taking 40.1% of sales with 126,579 tonnes, up 7.6%. Gran Canaria followed with 101,504 tonnes, representing 32.1% of the market and growth of 2.1%. The smaller islands recorded some of the strongest increases: El Hierro rose 47.9% to 2,156 tonnes, Lanzarote advanced 31.2% to 38,755 tonnes and Fuerteventura gained 11.1% to 30,992 tonnes. Demand contracted elsewhere, with La Palma down 7.4% to 12,865 tonnes and La Gomera down 5.8% to 3,151 tonnes.
The figures indicate that suppliers face markedly different local demand conditions despite the archipelago-wide rise. Las Palmas' lead in tendering and Lanzarote's strong cement growth point to greater near-term material requirements in the eastern islands, while falling volumes in La Palma and La Gomera show that the upswing is not universal.
Housing finance outpaces the national market
Property finance also strengthened. Citing National Statistics Institute data, Vozpópuli said the number of housing mortgages in the Canary Islands rose 31.4% year on year in June to 1,663. Across Spain, mortgage originations increased 10.8% to 45,907, the highest June figure since 2010. Canary Islands house prices were 10.7% higher year on year, compared with a national increase of 12.9% in the first quarter of 2026.
Revenue from the property transfer tax reached €188.2 million through June, up 0.45% from 2025, although June revenue declined 3.68% to €35.5 million. Housing-related urban property transfers fell 2.35% year on year, while transfers of building plots rose 41.85%. This divergence suggests that financing and land activity are expanding even as completed-home transactions remain under pressure.
New-building documentation provides another signal
Revenue from stamp duty totalled €47.6 million in the first half, down 0.54% from 2025 but 35.52% above 2024. June receipts reached €9 million, up 19.70% year on year. Mortgage-linked notarised documents returned to growth at 3.87%, while declarations for new construction and horizontal property division increased 30.83%.
For cement, brick and other construction-material suppliers, public procurement offers the clearest source of incremental demand. The timing of project awards and execution will determine how quickly the €886.1 million tender volume translates into physical consumption, while the large differences between islands will shape inventory, transport and distribution requirements.
