Greenfield Investment Real Estate in TenerifeIsland where mornings beginwith Atlantic views

Real estate in Tenerife, Spain: year-round lifestyle and steady investment returns

Why invest in property in Tenerife

Tenerife, the largest and most populated of the Canary Islands, offers a unique blend of subtropical climate, modern infrastructure, and growing tourism — making it one of Spain’s most attractive destinations for real estate investment. With more than 300 sunny days per year, EU legal protections, and no residency restrictions for foreigners, the island is a hotspot for buyers seeking vacation homes, rental income, or lifestyle relocation.

Tenerife’s economy is driven by tourism, international education, digital nomad communities, and increasing foreign investment. As air connectivity expands and demand grows for climate-resilient living, the island's real estate market offers both capital appreciation and income potential — particularly in the south, where rental demand is highest.

Types of real estate available

The island offers a wide variety of property types, from beachfront apartments and resort villas to rural fincas and modern urban flats. In the south — especially in towns like Costa Adeje, Playa de las Américas, and Los Cristianos — buyers can find vacation apartments, seafront residences, and gated communities with pools and tourist licenses. These areas are ideal for short-term rental strategies or second-home living.

In Santa Cruz (the capital) and La Laguna (a UNESCO-listed city), investors can acquire urban apartments, townhouses, or student rental units — often at more affordable prices compared to coastal resorts. The north of the island, including Puerto de la Cruz and La Orotava, offers more lush landscapes and traditional Canarian architecture, attracting long-stay visitors and nature lovers.

There are also opportunities in new developments, particularly around Golf del Sur, Palm-Mar, and El Médano — which offer a mix of modern design, energy efficiency, and sea views. Inland properties such as fincas or rustic homes offer renovation potential for boutique hospitality or eco-tourism ventures.

Foreign ownership and legal aspects

As part of Spain, Tenerife operates under EU property law. Foreigners can freely purchase and own property, whether for personal use or investment. Buyers need a NIE (tax identification number), a Spanish bank account, and must sign the purchase deed before a notary. Due diligence is particularly important in coastal zones, where building regulations and tourist licenses must comply with regional laws.

VelesClub Int. ensures legal and technical support throughout the transaction. We conduct property checks, coordinate with trusted notaries and legal partners, and manage the registration process. We also guide clients through the short-term rental licensing system — including Vivienda Vacacional registration — and assist with tax structuring, permit approvals, and, if desired, Golden Visa applications.

Property prices and rental yields

Tenerife offers a wide range of price points, making it accessible for both budget-conscious investors and premium buyers. In Costa Adeje, prices for modern apartments or villas range from €3,500 to €6,500/m², with seafront properties exceeding €7,000/m². In Playa de las Américas and Los Cristianos, prices average €2,500–€4,500/m² depending on location, amenities, and tourist licensing status.

Santa Cruz and La Laguna offer more affordable options, with prices between €1,800 and €3,000/m². In Puerto de la Cruz and northern villages, prices start from €1,500/m², with opportunities for scenic homes and boutique development projects. Inland fincas requiring renovation may be acquired below €1,000/m².

Rental yields are attractive — especially in licensed holiday properties in the south. Short-term vacation rentals can generate 6%–10% gross annually, with occupancy rates above 80% during high season (October to April). Long-term rentals offer 3%–5% yields and are in demand among expats, remote workers, and retirees seeking year-round living.

Neighborhoods and lifestyle

Tenerife’s diversity means that buyers can select a location aligned with their investment or lifestyle goals:

• Costa Adeje and La Caleta: Upmarket and modern, popular for luxury rentals and second homes.
• Playa de las Américas and Los Cristianos: Tourist-heavy zones with high short-term rental returns and international appeal.
• Santa Cruz and La Laguna: Urban centers with cultural life, student demand, and affordable urban housing.
• Puerto de la Cruz and La Orotava: Northern towns with green landscapes, lower density, and long-stay appeal.
• Golf del Sur and Palm-Mar: New development zones with golf resorts, sea views, and turnkey rental investments.

The lifestyle in Tenerife is relaxed, sunny, and international. The island offers top-rated hospitals, international schools, fiber-optic internet, and direct flights to Europe year-round. Outdoor activities abound — from hiking in Teide National Park to water sports and beach life. The cost of living is lower than mainland Spain, and the pace of life is slower, attracting retirees and digital nomads alike.

Who buys real estate in Tenerife

Tenerife attracts a global buyer base. The majority of foreign investors come from Germany, the UK, Scandinavia, Belgium, and Italy. Many buy second homes or holiday properties for personal use and seasonal letting. Increasingly, younger buyers — including digital nomads and remote professionals — are choosing Tenerife for its infrastructure, climate, and affordability.

Local Canarian buyers are active in Santa Cruz and La Laguna, while international buyers dominate in southern resorts. Investors also include developers seeking licensed apartments, turnkey hotel units, or plots for small-scale tourism projects. Interest in Golden Visa-compliant properties is growing among Latin American and Asian investors seeking EU access through real estate acquisition.

How VelesClub Int. helps you

VelesClub Int. provides full-service support for buying, investing, or relocating to Tenerife. We begin with an in-depth consultation to define your objectives — whether lifestyle, rental income, development, or residency. Our experts identify high-performing zones, verify legal and technical details, and accompany you through the entire transaction.

We help buyers secure rental licenses, set up marketing platforms (Airbnb, Booking), and manage properties on their behalf. For renovation or development projects, we coordinate local architects, engineers, and contractors, and assist with municipal permits. Our legal advisors handle Golden Visa processing, tax structuring, and succession planning for international owners.

Whether you're purchasing a beach apartment in Costa Adeje, a traditional home in La Orotava, or a revenue-generating asset in Los Cristianos, VelesClub Int. ensures your Tenerife investment is seamless, secure, and profitable.