Tenerife is one of the most popular and attractive islands in the Canary archipelago, both for tourists and residents. Its mild climate, natural landscapes, cultural and leisure offer and quality of life make it an ideal destination to live or invest.
But is it a good time to buy property in Tenerife? The answer is not simple, as it depends on many factors, such as the type of property, the area, the budget and the buyer’s expectations. However, we can analyse some data and trends in the real estate market to get an overview.
According to official data from the Ministry of Transport, Mobility, and Urban Agenda, the average price of property for sale in Tenerife in the second quarter of 2023 was 1,759 €/m², representing a 0.7% decrease compared to the same quarter of the previous year. This contrasts with the 2.4% national increase, indicating that the Tenerife market has adjusted more to the economic situation resulting from the pandemic.
However, the average price hides large differences between the different areas of the island. Thus, while in the municipality of Santa Cruz de Tenerife the average price was 2,049 €/m², in Granadilla de Abona it was 1,396 €/m². Furthermore, within each municipality there are also more expensive and cheaper neighbourhoods, so it is advisable to compare several options before deciding.
Another vital factor to consider is the supply and demand of housing in Tenerife. According to data from the Official Association of Real Estate Agents (COAPI) of Santa Cruz de Tenerife, there were 8,732 properties for sale in Tenerife in September 2023. This represents a 7.1% increase compared to the same month the previous year, providing more choices and potential negotiation opportunities with sellers.
It’s worth noting that demand for homes in Tenerife remains high, particularly among foreign buyers. In H1 2023, 27% of homes sold in Tenerife were purchased by foreigners, with the British, Germans, and French being the most prominent groups.
In conclusion, buy property in Tenerife can be a good option if you’re seeking a home for long-term living or renting, as reasonable prices and a good quality of life can be found. However, if you’re looking for a short-term rental or quick resale, you should consider that the market is tighter and more competitive, requiring a higher investment and greater risk.
In any case, it’s advisable to seek professional advice from a real estate agency or a specialized manager who can guide you on the best options according to your profile and needs. This way, you can take advantage of the opportunities offered by the Tenerife property market and make a safe and profitable purchase.