Real Estate in Tenerife in 2025: How Much Do Houses and Apartments Cost?

Introduction
Tenerife, the largest island of the Canary archipelago, is one of the most sought-after locations for real estate purchases. Its excellent climate, developed infrastructure, and attractive prices make it popular among investors and home buyers. In recent years, the demand for real estate in Tenerife has grown significantly, leading to an increase in prices. As 2025 unfolds, the real estate market continues to evolve, making it crucial to understand what to expect in the future.
In this article, we will examine key trends in the Tenerife real estate market, discuss price forecasts, and provide valuable advice for buyers looking to invest in this picturesque part of Spain.
Current State of the Real Estate Market
By the end of 2024, the real estate market in Tenerife remained active and growing. Key trends included:
• Rising property prices. The average price per square meter increased by 15–20% over the past three years.
• High demand. Apartments and houses in the southern part of the island remained the most sought-after properties.
• Limited supply. The number of new construction projects remained low, causing the prices of existing properties to rise.
The average price per square meter ranged from €2,500 to €3,500, depending on the location and property specifications.
Price Forecast for 2025
Analysts predict that real estate prices in Tenerife will continue to rise in 2025. The key factors driving this trend include:
1. Tourism growth. Tenerife remains one of the most popular holiday destinations, sustaining high demand for short-term rental properties.
2. Influx of foreign investors. Buyers from Germany, the UK, and Scandinavian countries are actively investing in Tenerife’s real estate.
3. Limited supply. Due to strict building regulations, new housing developments are introduced slowly, increasing the value of existing properties.
Expected price growth in 2025 is estimated at 5–10%, which may push the average price per square meter to €3,000–4,000 in the most popular areas.
Property Prices in Different Areas of Tenerife
Tenerife can be divided into southern and northern regions, each with distinct features and price levels.
Southern Tenerife (Las Americas, Costa Adeje, Los Cristianos)
This region is the most expensive due to its developed infrastructure, large number of tourists, and high quality of life.
• Apartments: €3,500 to €5,500 per square meter.
• Houses and villas: €500,000 to €2,500,000, depending on location and size.
Northern Tenerife (Puerto de la Cruz, Santa Cruz de Tenerife)
The northern part is less touristy but attractive for permanent living due to its mild climate and lush landscapes.
• Apartments: €2,000 to €3,500 per square meter.
• Houses and villas: €300,000 to €1,500,000.
Central and Mountainous Areas
Less developed but with investment potential.
• Apartments: from €1,500 per square meter.
• Houses: from €200,000.
Factors Influencing the Real Estate Market in 2025
1. Economic conditions in Europe. Inflation rates and interest rates could impact investment attractiveness in Tenerife.
2. Short-term rental regulations. Possible changes in rental laws may affect the profitability of investments in vacation properties.
3. Infrastructure development. New roads, schools, hospitals, and shopping centers in certain areas may drive property prices up.
Investment Opportunities
Buying property in Tenerife remains an attractive option for investors. Key investment strategies include:
1. Purchasing for short-term rental. Particularly profitable in tourist areas such as Las Americas and Costa Adeje.
2. Long-term rental investment. Suitable for the northern part of the island, where properties are in demand among locals and expatriates.
3. Property flipping after renovation. Undervalued properties can yield high returns after quality refurbishments.
Buyer Advice
If you plan to purchase real estate in Tenerife in 2025, consider the following recommendations:
1. Choose a location based on your goals. The southern part is best for rentals, while northern areas offer better conditions for permanent living.
2. Evaluate future price growth. Invest in areas with developing infrastructure.
3. Ensure legal compliance. Work only with trusted agencies and consult legal professionals before finalizing a purchase.
4. Consider new developments. They offer better long-term returns and comply with modern quality standards.
Conclusion
Tenerife continues to be one of the most attractive regions for real estate purchases in 2025. Prices are expected to keep rising, while demand for housing remains high. Investors and buyers who make timely purchase decisions can secure significant benefits.
With the right choice of property and investment strategy, real estate in Tenerife can become a profitable asset, generating stable income while offering the pleasure of owning a home in one of Spain’s most beautiful locations.