Tenerife is the largest and most populated island of the Canary Islands. Geographically, it is much closer to Morocco and the African coast than to Spain, to which it belongs. Therefore, buying a home in Tenerife is primarily sought by those seeking a combination of European jurisdiction and an African climate, tempered by the cool waters of the Atlantic.
Peculiarities of Buying a House in Tenerife
The most compelling argument for purchasing real estate in the Canary Islands is that the islands are located in a preferential economic zone, and the property transfer tax, instead of the usual 10%, is only 6.5%.
Other features of local real estate:
- Diversity of properties. The island offers villas, townhouses, bungalows, chalets, and seaside homes.
- Investment attractiveness. Houses for sale in Santa Cruz de Tenerife and southern areas such as Los Cristianos generate rental yields of 5-7% per annum thanks to the 3.5 million tourists who visit them annually (Turismo de Tenerife, 2024).
- Eco-friendly standards. New homes on the island are often built with energy efficiency ratings (Class A or B), which reduces utility costs in the mild climate.
House Prices in Tenerife
Between 2023 and 2025, house prices in Tenerife increased by an average of 15-16%, in line with the overall market dynamics on the island. Southern resorts like Costa Adeje and Los Cristianos saw the greatest growth, with the average price exceeding €4,000/m², while in northern areas like Puerto de la Cruz, prices remained closer to €2,000/m².
Average cost of a house in Tenerife by property type:
|
Property type
|
Average price 2023 (€)
|
Average price 2025 (€)
|
| Villa |
600 thousand–2.6 million |
700 thousand–3+ million |
| Townhouse |
260–480 thousand |
300–550 thousand |
| Bungalow |
200–350 thousand |
230–400 thousand |
| Chalet |
320–700 thousand |
380–800 thousand |
| Duplex |
220–450 thousand |
260–520 thousand |
| House by the sea |
650 thousand–3.2 million |
750 thousand–4 million+ |
| Cottage |
1.1–5 million |
1.3–6+ million |
Popular Areas with Houses for Sale in Santa Cruz de Tenerife
The most sought-after area for premium housing is Costa Adeje. It's home to a marina, golf courses, and the island's most expensive villas. Homes with pools and ocean views cost between €800,000 and €2 million.
Other popular areas:
- Los Cristianos. This former port village has been transformed into a major resort. It's ideal for mid-priced homes (€250,000–€600,000). The location is ideal for short-term rentals: the Las Vistas beaches and proximity to Siam Park ensure a steady flow of tourists.
- Puerto de la Cruz is famous for its historical park "Loro Parque". Housing prices in Puerto de la Cruz start from €300,000.
- San Cristobal de la Laguna is a university town. Prices here are affordable, ranging from €280,000 to €500,000.
- El Medano. The island's sports hub, especially for windsurfers. Accommodation is more affordable here: bungalows start at €220,000.
