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Where are the best places to invest in the Canary Islands right now? Is Tenerife still the top pick, or are islands like Gran Canaria, Lanzarote, and Fuerteventura gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the archipelago. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in the Canary Islands and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
1) Arrecife, Lanzarote, is gaining interest for its affordable prices and closeness to the main airport
Arrecife in Lanzarote is catching the eye of property buyers thanks to its affordable prices and prime location.
In October 2024, the average price for homes in Arrecife was €1,877 per square meter, a bargain compared to places like Yaiza, where prices soared to €3,303 per square meter. This makes Arrecife a smart choice for those hunting for budget-friendly real estate on the island.
One of Arrecife's biggest perks is its close proximity to Lanzarote Airport, making it super convenient for both locals and visitors. This easy access is a huge draw, adding to the area's charm and appeal.
Recent upgrades to Arrecife's infrastructure have made getting around a breeze, boosting its connectivity. These improvements, along with the island's booming tourism, have sparked a surge in property interest, especially among international buyers looking for investment opportunities.
Arrecife's growing popularity is also fueled by its vibrant local culture and stunning coastal views, offering a unique blend of urban and beach life. This mix is particularly enticing for those wanting a slice of island paradise without breaking the bank.
With its competitive pricing and strategic location, Arrecife is becoming a hotspot for savvy investors and homebuyers alike, eager to tap into the island's potential.
Sources: Indomio, Canarian Properties, Destinations by LeadingRE
Here is a luxurious villa surrounded by palm trees and a pristine pool in the Arrecife area, reflecting the growing appeal of this budget-friendly yet stunning coastal destination. (Source: Laura Acevedo Real Estate Investment)
2) Corralejo, Fuerteventura, is gaining interest for its high rental yields fueled by booming tourism
Corralejo, Fuerteventura, is a prime spot for property buyers thanks to its high rental yields fueled by a thriving tourism industry.
Tourism is the backbone of Fuerteventura's economy, with 80% of economic activity tied to this sector. The local government has poured over 17 million euros into upgrading tourist facilities, making the area even more attractive to visitors. This investment has paid off, drawing more tourists and boosting the demand for vacation rentals.
In Corralejo, vacation rentals are a hot commodity. For instance, 3-bedroom properties enjoy a median occupancy rate of 67%, which translates to an average annual revenue of €34,509. This consistent tourist interest keeps rental yields high, making it a lucrative market for property investors.
The Canary Islands, including Corralejo, are experiencing a steady rise in property prices and rental demand. This trend is largely due to the influx of international buyers who are captivated by the region's tourism allure and stable real estate market.
With its stunning beaches and vibrant local culture, Corralejo continues to be a magnet for tourists, ensuring that the rental market remains robust. The combination of government investment and natural appeal makes it a smart choice for those looking to invest in property.
Sources: Airbtics, Guide to Canary Islands, Guide to Canary Islands
We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) El Médano, Tenerife, is attracting interest for its affordable beachfront homes and rising rental demand from windsurfing enthusiasts
El Médano, Tenerife, is becoming a hotspot for those seeking affordable beachfront properties and a vibrant rental market.
In 2024, property prices in El Médano averaged €3,606 per square meter, showing a nearly 10% rise from the previous year. This surge underscores the area's growing appeal, especially when compared to other parts of Tenerife. Local real estate experts, like Indomio, highlight the strong demand for beachfront homes, marking El Médano as a top choice for both buyers and renters.
The tourism boom has been a game-changer, with Tenerife attracting over 26 million tourists in 2023. Many flock to El Médano for its prime windsurfing conditions, thanks to the reliable trade winds. This has fostered a tight-knit community of windsurfing fans, further driving up rental demand. Property owners often enjoy high rental occupancy during peak windsurfing seasons, as the area is renowned for the sport.
Rental prices have climbed significantly, with the average monthly rent hitting €14.93 per square meter, a jump of nearly 20% from 2023. This attractive rental yield reflects the increasing popularity among tourists and long-term renters. El Médano's affordability compared to other European beachfront spots makes it a compelling investment.
Sources: Indomio, Canarian Surf Fruit, Savills, Rightmove
4) Costa Adeje in Tenerife is gaining attention for its luxury villas and strong appreciation potential driven by upscale tourism
Costa Adeje in Tenerife is now a prime spot for luxury villas, thanks to its evolution from a simple fishing village to a vibrant tourist hub.
This change kicked off in the late 1960s, with major developers crafting upscale projects like the Abama Resort Tenerife and Baobab Suites. The area has become a magnet for those seeking high-end living.
With over 6.5 million tourists visiting Tenerife in 2023, the demand for luxury villas in Costa Adeje is clear. The numbers are climbing even higher in 2024, drawing affluent visitors who crave exclusive stays, such as those at the Royal River Hotel's villas.
Costa Adeje's charm is further highlighted by its impressive 41% increase in luxury accommodation bookings in late 2024. This surge is part of Tenerife's strategy to lure wealthier tourists, boosting the area's luxury status.
As a result, property values in Costa Adeje are appreciating faster than in other parts of Tenerife, making it a hot spot for investment. The area's upscale tourism appeal is a key driver of this trend.
Sources: Solmar Villas, Turistas Canarias, Tenerife Property Group, Royal River, TTG Media
5) Los Cristianos, Tenerife, is booming with high holiday rental occupancy and vibrant nightlife
Los Cristianos in Tenerife is buzzing with activity, making it a prime spot for property investment.
With holiday rentals boasting an impressive 78% occupancy rate, the area is a goldmine for those looking to invest in short-term rentals. This means property owners can potentially earn around €21,000 annually, a figure that’s hard to ignore.
The island's tourism scene is thriving, with over 6.5 million tourists flocking to Tenerife in 2023. This steady stream of visitors keeps the demand for accommodations high, especially in hotspots like Los Cristianos.
What really sets Los Cristianos apart is its vibrant nightlife. Imagine enjoying live music at The Vault Bar or sipping cocktails at Bar El Infierno, both of which are favorites among tourists. These lively venues not only entertain but also draw more visitors, boosting the local economy.
Investing in Los Cristianos means tapping into a market that thrives on its appealing nightlife and consistent tourist influx. The area’s charm and energy make it a magnet for holidaymakers, ensuring a steady flow of guests year-round.
For those considering a property purchase, Los Cristianos offers a unique blend of high rental yields and a bustling social scene. It's a place where the sun shines, the nights are lively, and the investment opportunities are promising.
Sources: Turistas Canarias, Canarian Weekly, Airbtics
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6) Playa Blanca, Lanzarote, is gaining interest with rising property values from its family-friendly resorts and expanding infrastructure
Playa Blanca, Lanzarote, is seeing a surge in property values thanks to its family-friendly resorts and growing infrastructure.
In the past year, property prices in Playa Blanca have jumped over 23%, making it a hot spot for potential buyers. This rise is fueled by the demand for family-friendly accommodations, with many wealthy buyers eyeing high-end villas and exclusive resorts. The allure of ocean views and luxury amenities is a big draw, not just in Playa Blanca but across the Canary Islands, including Tenerife and Gran Canaria.
Playa Blanca is buzzing with new construction projects, notably the expansion of its port. This development is set to boost the local economy and make the area even more attractive to tourists and investors. The new port will have more carparks and expanded docking facilities, which means more visitors and more business opportunities.
Families are particularly drawn to Playa Blanca for its safe, welcoming environment and the variety of activities available. The area offers everything from water sports to hiking trails, making it a perfect spot for both relaxation and adventure. This family-friendly vibe is a key reason why property values are climbing.
Investors are also taking note of the expanding infrastructure, which includes improved roads and public services. These enhancements not only make life more convenient for residents but also increase the area's appeal to potential buyers. As a result, Playa Blanca is becoming a prime location for real estate investment.
With its combination of natural beauty, modern amenities, and a welcoming community, Playa Blanca is quickly becoming a top choice for those looking to invest in property. The ongoing developments and rising property values suggest that this trend is likely to continue, making it an exciting time to consider buying in this vibrant area.
Sources: Gazette Life, Gazette Life, Destinations by LeadingRE, Rightmove
7) San Cristóbal in Las Palmas is booming with its revitalized waterfront and growing interest from young professionals
San Cristóbal in Las Palmas, Gran Canaria, is buzzing with a real estate boom thanks to its revamped waterfront and the influx of young professionals.
The waterfront's transformation has turned San Cristóbal into a hotspot. With new development projects, the area now boasts improved infrastructure and amenities, making it a magnet for those seeking a lively cultural scene and job opportunities in Las Palmas.
Young professionals are flocking here, drawn by the vibrant lifestyle and economic prospects. This shift has led to a surge in demand for rental properties, with average rents climbing to €16.64 per square meter, further fueling the real estate frenzy.
Local businesses are thriving, catering to the younger crowd and adding to the area's charm. This growth has not only enhanced the community vibe but also boosted property values, making San Cristóbal a prime location for investment.
In 2023 and 2024, property prices in the Canary Islands jumped by 7.1%, with Las Palmas seeing prices soar to €6,000 per square meter in coastal areas. This trend highlights the strong demand for properties in attractive spots like San Cristóbal.
As more young professionals settle in, the neighborhood continues to evolve, offering a dynamic mix of culture, convenience, and opportunity. The real estate boom in San Cristóbal is a testament to its growing appeal and potential.
Sources: Canarian Weekly, New Building Spain
A glimpse of San Cristóbal’s renovated seafront, a sought-after area attracting young professionals and investors alike, with its vibrant lifestyle and stunning views. (Source: Addurno)
8) La Laguna, Tenerife, is attracting investors with its historic charm and growing demand for student housing near the university
La Laguna, Tenerife, is quickly becoming a hot spot for investors thanks to its historic charm and the growing demand for student housing.
With its charming colonial architecture and narrow streets, La Laguna offers a unique blend of history and modern living. This historic appeal is a major draw for investors, especially as property prices have been on the rise. The city's strong rental market is largely driven by the presence of several universities, attracting a growing student population.
The University of La Laguna is a key player in this trend, bringing in a significant number of students, including many from abroad. This influx has created a shortage of student housing, making it a prime opportunity for investors to step in and earn rental income. New student housing projects are popping up, aiming to offer modern and sustainable living spaces for students.
Investors are particularly interested in these developments, as they highlight the city's potential for growth. The combination of academic and cultural attractions, along with a robust rental market, makes La Laguna a smart choice for those looking to benefit from both rental income and property appreciation.
La Laguna's appeal isn't just about numbers; it's about the lifestyle it offers. The city's vibrant atmosphere, coupled with its educational institutions, creates a dynamic environment that continues to attract students and investors alike. This unique mix of elements is what makes La Laguna stand out as a promising investment location.
As the demand for student housing continues to rise, so does the potential for property appreciation. Investors are keen to capitalize on this trend, recognizing the city's ability to offer both immediate rental returns and long-term value growth.
Sources: Elba Invest Inmobiliaria, 4Life Properties, Invest in La Laguna
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Puerto de Mogán, Gran Canaria, is booming with rising property values thanks to its picturesque marina and growing retiree interest
Puerto de Mogán in Gran Canaria is seeing a surge in property values thanks to its picturesque marina and growing popularity among retirees.
In 2023, the average price per square meter in areas like Mogán jumped to 3,327 €/m², marking an annual increase of 8.7%. This rise is fueled by a high demand for real estate, especially in the sunny south of Gran Canaria. The property market is buzzing, with nearly 35% of buyers coming from abroad, including places like Scandinavia, Germany, and the UK.
Retirees are flocking to the Canary Islands, drawn by the mild climate and high standard of living. Surveys show that retirees prefer coastal and scenic spots, making Puerto de Mogán a top choice. The area’s charm and lifestyle are hard to resist, especially for those looking to enjoy their golden years in a beautiful setting.
Demand for housing in Gran Canaria's south has been strong, with some areas seeing over 25% growth in the first half of 2023. This trend highlights the region's appeal, not just for retirees but for anyone seeking a vibrant yet relaxed lifestyle. The influx of international buyers adds to the dynamic property scene, making it a lively market to watch.
Puerto de Mogán’s marina and quaint streets are not just attracting tourists but also those looking to invest in a piece of paradise. The combination of natural beauty and a welcoming community makes it a standout location for property investment. As more people discover its allure, the demand and prices are likely to keep climbing.
Whether you're considering a retirement haven or a smart investment, Puerto de Mogán offers a unique blend of charm and opportunity. Its growing popularity is a testament to its appeal, making it a hotspot in the Canary Islands' real estate market.
Sources: Destinations by LeadingRE, Cardenas Gran Canaria
10) Puerto del Rosario, Fuerteventura, is a real estate hotspot with its strategic location and growing commercial development
Puerto del Rosario in Fuerteventura is quickly becoming a real estate hotspot due to its strategic location and growing commercial development.
Property prices here have seen a 13% annual increase, making it one of the most affordable yet rapidly appreciating areas on the island. This trend is drawing in both local and international buyers eager to invest in a market with great potential.
New businesses are popping up, attracted by Puerto del Rosario's charm as a quiet and culturally rich place to live. This business boom is turning the area into a commercial hub, which is further boosting the real estate market.
The population has grown significantly, exceeding 45,000 inhabitants for the first time in 2023. This growth is likely to bring more government investment in infrastructure, making the area even more appealing.
Improved transportation links have made Puerto del Rosario more accessible, catching the eye of international buyers. Its strategic location, coupled with a booming tourism industry, is pushing property prices up and making it a promising spot for real estate investment.
New amenities and services, like high-quality schools and a wide range of cultural offerings, are enhancing its desirability as a place to live. This development is making Puerto del Rosario a top choice for those looking to buy property in the Canary Islands.
Sources: GoldAcre Estates, Fuerteventura Forum, Destiny Home
11) Santa Cruz de La Palma is gaining interest for its colonial charm and rising demand for eco-tourism properties
Santa Cruz de La Palma is catching eyes for its charming colonial architecture and a surge in eco-tourism properties.
In 2023, the buzz around this area led to rising property prices, showing a strong demand for its unique blend of old-world charm and eco-friendly living. People are drawn to the island's picturesque streets and the promise of sustainable living, making it a hot spot for those looking to invest in a slice of paradise.
Property transactions in La Palma have also seen a boost, likely because it's becoming a favorite for eco-tourism enthusiasts. This trend fits right in with the overall growth in the Canary Islands' tourism sector, which has been thriving thanks to the eco-tourism boom.
There's a noticeable uptick in eco-tourism accommodations and businesses popping up in La Palma. Many colonial buildings are getting a facelift, turning into modern eco-friendly accommodations while keeping their historical charm intact. This not only preserves the city's heritage but also makes it even more appealing to eco-conscious travelers.
These restoration projects are a win-win, offering visitors a chance to experience the island's rich history while enjoying sustainable living options. The blend of old and new is creating a unique atmosphere that is hard to resist.
Santa Cruz de La Palma is becoming a go-to destination for those who appreciate the beauty of colonial architecture and the benefits of eco-tourism. The island's commitment to sustainability is drawing in a new wave of tourists and investors alike.
Sources: Tenerife Weekly, Caan Design, Canarian Weekly
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.