Tenerife: Upturn on property market continues

Tenerife, the largest of the seven Canary Islands in the middle of the Atlantic Ocean, is one of the most  popular holiday destinations in the world thanks to its mild year-round climate and diverse scenery. In  particular, the municipality of Adeje in the southwest of the island has become increasingly sought-after  in recent years. “The demand for residential and holiday properties on Tenerife remains consistently  high. Over the last two years, sale prices in some areas have risen by up to 30 percent,” said Regine  Hecht, Sales Director of Engel & Völkers Tenerife/Adeje.

High price bracket in prime locations

Among the most expensive regions on the Canary island are the communities of Costa Adeje and Guía  de Isora. In 2018, prices per square metre of up to 6,000 euros were fetched here for premium properties.  Families from abroad are often drawn to the island in search of large detached houses and villas with a  private pool, garden and sea views. Prices for such high-end properties range from 1 to 2 million euros.  Local client interest is more focused on townhouses near Costa Adeje. Such properties with an interior of approximately 100 square metres are selling for between 300,000 and 600,000 euros. 

Adeje: Popular second home location

High international demand is having a large impact on the Tenerife property market. The majority of  prospective buyers are interested in acquiring properties in the locations Costa Adeje and La Caleta. In  recent years, prices here have risen by as much as 30 percent. In 2018, the proportion of foreign buyers  from Engel & Völkers Adeje was around 82 percent. More than half of these buyers come from  Germany, Austria and Switzerland. The remainder of this client group primarily come from England, Belgium, the Netherlands and France.

Outlook: Continuing upward trend expected

Engel & Völkers forecasts that the residential property market on Tenerife will continue on a positive  course of growth in the future. “The high level of interest from international buyers will mean real estate  prices will keep on rising. Municipalities are responding to this sustained demand with investments in local infrastructure and the realisation of new building developments,” said Regine Hecht.  

More information about Tenerife’s residential property market can be found in the
“Market Report for Spain 2018-2019”, published by Engel & Völkers.