The Canary Islands remain one of Spain’s most dynamic real estate markets. Apartments and condominiums on the archipelago offer an affordable entry point into the Spanish market with potential rental yields of 5–7% annually. The islands’ year-round tourist flow adds to their appeal—in Q1 2025 alone, the Canary Islands welcomed 4.36 million tourists, a 2.1% increase compared to the same period last year.

Contents:

  1. Advantages of Buying Apartments in the Canary Islands
  2. Popular Investment Areas
  3. Overview of Attractive Properties in the Canary Islands
    1. Apartment in Royal Palm Complex
    2. Apartment in Eldorado Complex
    3. Spacious Apartment with Terrace
  4. Current Real Estate Prices in the Canary Islands
    1. Price Growth Dynamics
  5. Purchase Process for Foreigners

Advantages of Buying Apartments in the Canary Islands

Climate conditions
Known as the «islands of eternal spring,» the Canary Islands maintain temperatures between 16—28°C year-round, making them a comfortable place to live or visit at any time.

Stable rental income
The average rental price in the islands rose by 10.3% in 2024, with a 13.5% increase in the western province. Apartments in Los Cristianos show consistent results in the short-term rental market through platforms like Airbnb.

Tax advantages
The Canary Islands have Special Economic Zone (ZEC) status with preferential taxation. The corporate tax rate for ZEC residents is 4% instead of the standard 25%. Instead of the 21% VAT, a special indirect tax (IGIC) applies at a 7% rate, making investments more attractive.

[estates*type-[sale-apartment]*geo-id-687858*title-A Selection of Profitable Apartments in the Canary Islands*button-View all similar properties]

Popular Investment Areas

Los Cristianos (Tenerife)
A resort hub with well-developed infrastructure, where studio apartments start at €159,000, with an average price of €4,283/m². The area offers over 1,500 short-term rental options, with nightly rates starting at €1,670.

Arona (Municipality)
The average property price in Arona is €469,531, with prices ranging from €4,260 to €4,283/m² depending on the specific location.

Playa de las Américas
One of the most popular tourist areas with extensive entertainment infrastructure and proximity to major beaches.

Overview of Attractive Properties in the Canary Islands

We review current real estate offerings in the popular resort area of Los Cristianos, part of the Arona municipality on Tenerife.

Apartment in Royal Palm Complex

[estate-3534063]

  • Price: €267,353 ($290,602).
  • Area: 40 m².
  • Price per m²: €6683/m².
  • Bedrooms: 1.
  • Features: fully equipped kitchen, living room with access to a sea-view terrace, strong rental potential.

The Royal Palm complex is a well-managed property with developed infrastructure, including a pool, gardens, and recreational areas. The apartment features security systems, satellite TV, and free Wi-Fi.

Apartment in Eldorado Complex

[estate-3534119]

  • Price: €315,478 ($342,911).
  • Area: 45 m².
  • Price per m²: €7010/m².
  • Bedrooms: 1.
  • Features: located in Playa de las Américas, close to Las Vistas beach, with a permit for short-term rental (VV).

This property has an official permit for short-term rentals and is conveniently located just minutes from one of the island’s best beaches.

Spacious Apartment with Terrace

[estate-3533894]

  • Price: €299,437 ($325,475).
  • Area: 110 m².
  • Price per m²: €2722/m².
  • Bedrooms: 3.
  • Features: two-level layout, modern finishes, air conditioning, private terrace.

These spacious apartments stand out for their attractive price per square meter and are suitable for both family living and renting to large tourist groups.

Current Real Estate Prices in the Canary Islands

According to the latest data, the average price per square meter in Tenerife ranges from €3,455—3,467. Across the Canary Islands, the average price reached €2,865/m², reflecting a 34.1% increase over the past five years.

Price breakdown by apartment type in 2025:

Apartment type

Average price (€)

Rental yield

Studio

€189,000

6.03%

One-Bedroom

€255,000

5.18%

Two-Bedroom

€320,000

4.88%

Three-Bedroom

€335,000

4.75%

These figures are based on current rental yield statistics for Tenerife, where the average yield is 5.11%, ranging from 3.44% to 6.98% depending on the area.

Price Growth Dynamics

The Canary Islands lead Spain in real estate price growth. According to recent data:

  • 23.4% price growth across the archipelago in 2023–2024, making it Spain’s top performer.
  • 16.3% price growth in 2025, surpassing national averages.
  • In the Santa Cruz de Tenerife province, prices rose by 31.3%, reaching €2,911/m².

Experts forecast continued price growth of at least 4% in 2025.

Purchase Process for Foreigners

Foreign nationals can freely purchase property in the Canary Islands. To complete a purchase, you need to obtain an NIE (Foreigner Identification Number) through a Spanish consulate or a local police department for foreigners (Extranjeria).

Main steps of the purchase process:

  1. Obtain an NIE at a consulate or in Spain.
  2. Open a bank account in a Spanish bank.
  3. Complete the transaction through a notary.
  4. Register property ownership.

The combination of a warm climate, affordable prices, stable rental income, and long-term capital appreciation potential makes the Canary Islands a highly favorable destination for investors.