Tenerife is the largest island in the Canary Islands, boasting year-round temperatures of around 22°C (72°F) and a landscape that combines beaches with volcanic mountains. The island's capital, Santa Cruz de Tenerife, has a population of only about 200,000, but receives over 800,000 visitors annually.
Benefits of Buying Real Estate in Tenerife
Buying real estate in Tenerife is beneficial not only as an investment asset generating rental income, but also as a place to live year-round. This is facilitated by:
- The climate of "eternal spring". The average annual temperature in coastal zones ranges from +21°C to +28°C.
- European infrastructure. The island has two international airports (Tenerife Norte and Tenerife Sur), 14 golf courses, 3 universities, and medical centers.
- Preferential tax regime. The Canary Islands benefit from a special EU economic regime, which reduces local VAT to 7% compared to 21% in mainland Spain.
Prices for Properties for Sale in Tenerife
In 2025, the Tenerife real estate market is expected to grow by 4.2% compared to 2024. The variety of properties is wide, with studios, apartments, townhouses, villas, and commercial properties available for purchase.
Prices for real estate for sale in Tenerife:
| Category |
Area (m²) |
Price range (€) |
Locations/Features
|
| Studios and apartments |
30–50 |
80,000 – 140,000 (secondary) |
Los Cristianos, Playa de las Américas |
| New buildings (apartments) |
50–70 |
from 180,000 |
Complexes with panoramic ocean views |
| Townhouses |
80–120 |
220,000 – 450,000 |
Adeje, El Medano, usually with a communal pool |
| Villas |
150–300 |
700,000 – 3,000,000 |
Costa Adeje, Abama; private pools, views of Teide |
| Commercial real estate |
30–100 |
from 100,000 |
Premises for cafes and shops in tourist areas |
Popular Areas for Buying a Home in Santa Cruz de Tenerife
Tenerife's most sought-after housing is in Costa Adeje, a southern area with luxury complexes. The popular beaches of Playa del Duque and Playa Fañabé are located here, and the average price per square meter ranges from €4,500 to €6,000.
Other popular areas:
- Los Cristianos. A former fishing village, now a tourist hub. Popular residential complexes rent apartments for €800–€1,200 per month. Purchase prices are higher, at €2,500–€4,000 per square meter.
- Playa de las Américas. A nightlife hub with bars and clubs. Suitable for young people and investors seeking high rental yields (6-9% per annum). Prices per square meter range from €3,000 to €5,000.
- Puerto de la Cruz. The northern region with black volcanic beaches and the Loro Parque botanical garden. Tenerife property for sale in Puerto de la Cruz is carried out at prices ranging from 2000–3500 euros per square meter.
- Santa Cruz de Tenerife (center). An urban area featuring Garcia Sanabria Park and the Tenerife Auditorio. Ideal for those who prefer an urban lifestyle, with prices ranging from €2,200–€3,800 per square meter.
