Property purchase on Tenerife: profitable investment for foreigners
Purchasing real estate on Tenerife is pretty profitable for foreign buyers. And not only as an investment. When buying a local apartment, foreigners can apply for a Schengen visa and a residence permit for the whole family. Besides, investing in Tenerife real estate is also a great opportunity to live all year-round close to the Pacific coast. This area is famous for its unique climate. On the largest of the Canary Islands, the weather is hot and sunny almost 365 days a year.
The main benefits of buying estate on Tenerife
Foreigners actively buy local apartments for several reasons:
- Comfortable climate. In summer, the temperature is about +30 degrees, in winter it’s around +20.
- Never-ending swimming season. The water temperature in the Atlantic Ocean remains suitable for swimming even in February.
- Delicious cuisine. The locals have a unique opportunity to eat fresh seafood and vegetables the whole year.
- Affordable mortgage.
- Reasonable property prices. On Tenerife, apartment prices are much lower than in other European countries. An average price for a regular apartment is €150 thousand.
Favourable income renting real estate
Among the main advantages are high profitability from purchasing square meters on Tenerife. Foreigners often lease apartments they bought here and receive a stable profit in euros. The locals and visiting the island tourists are rather interested in rental real estate. Residential properties in Costa Adeje and Los Cristianos are in high demand on Tenerife. Owners receive the most income from renting apartments in these areas.
Who buys properties most often?
There are 3 main types of buyers of residential and commercial objects on Tenerife:
- Investors. They invest in the Spanish economy to profit from estate renting. Another reason for investment is constant property price growth. On Tenerife, after a certain time, purchased apartments can always be resold at a higher price.
- Families. They buy local housing for personal use. Living on Tenerife allows them to enjoy the ocean and raise their children in a favourable atmosphere. Large families not only buy comfortable houses but also cottages, a cheaper option. When buying an apartment, it is important to take into account a developed infrastructure, to avoid areas full of bars for tourists.
- Buyers for residence. This category includes investors who, in addition to income from purchased apartments, want to obtain the right to live in Spain. They are given a residence permit on the condition that they invest at least €500 thousand into the local economy.
Every year there are more and more real estate buyers on Tenerife. Despite an expensive cost of living, the Canary Islands attract foreign citizens with its advanced economy, the absence of bribes and, of course, magical nature, that cannot be found anywhere else in the world.