Are Tenerife Property Prices, in 2025, going up or down?

Updated Autumn 2025 – The short answer is – property prices in the popular resorts of Los Cristianos, Playa de Las Americas, Costa Adeje etc – the South of Tenerife, have been rising over recent years and are up as much as 79% since 2020.

Recent Price Trends and Different Areas

Looking at the latest data across the south of Tenerife, the numbers are pretty striking. In Adeje, the island’s most expensive municipality, the average price of a second-hand property has surged from just €2,504 per m² in October 2020 to an impressive €4,485 by July 2025, a rise of 79%, the steepest jump anywhere on the island. Costa Adeje still easily holds the crown as Tenerife’s priciest area, with values now at €5,041 per m², while the greatest yearly increase was actually found in Tijoco-La Quinta-Caucho (+17.1%).

Arona is also delivering rapid growth, with average prices up from €2,242 per m² in 2020 to €3,675 in 2025 – a strong 64% increase. Playa de las Américas remains the costliest location in the south, now averaging €5,873 per m². Meanwhile, more residential locales such as El Fraile (+28.2%), Cho-Guaza (+23.6%), and Chayofa (+15%) have posted the fastest growth over the last year.

Granadilla de Abona stands out for aggressive price escalation, up 22% in the past 12 months and 75.6% since 2020. Coveted coastal spots like El Médano (€3,824 per m²) and Los Abrigos (€3,580 per m²) remain in intense demand, while San Isidro and the town centre continue to reach record highs.

Even in San Miguel de Abona, prices have climbed an incredible 68% over five years, with areas like Golf del Sur and Amarilla Golf now averaging €3,320 per m². Traditionally more affordable enclaves such as Las Chafiras (+17.6%) are also seeing marked appreciation.

Across the south, it’s the same story. High demand from overseas buyers and a short supply of well-priced homes continues to fuel price rises, both in established hotspots and in areas once considered more budget-friendly.

Why Have Property Prices Risen So Much in Tenerife?

The answer to this question is lengthy and multi-faceted. The property price boom in Tenerife really began after the Covid lockdowns began to lift. Demand really started to surge from all of the traditional markets. Demand increased further with the onset of the war in Ukraine, when lots of Eastern European buyers began to look for safe havens to park their money and Tenerife was seen as far away, stable and with a solid holiday rental income. Tenerife is about as far away, in Europe, as you can be from the conflict zones and as such we have seen a large amount of buyers emanating from Ukraine, Latvia, Lithuania, Estonia, Poland and the Czech Republic.

As a result of this increase in demand, supply has dwindled and prices have inevitably squeezed higher and higher. We are just at the start of the 2025 / 2026 season after another very busy year.

The Overpricing Problem

There’s a noticeable shortage of good quality properties at reasonable prices, partly due to widespread overpricing. Hundreds of inexperienced agents are promising unrealistic valuations to win listings, and owners naturally choose the agent quoting the highest price.

The result? Properties sit on the market for months with little interest. If your property has been listed since January 2025 without selling, it was either overpriced or had access issues or some other issue – because most correctly priced properties sell between November and May.

While it’s a great time for owners thinking of selling their property in Tenerife with prices at all-time highs, get the valuation wrong and you’ll waste a year with little chance of success. As the gap between seller expectations and buyer budgets widens, only correctly priced properties will sell – the rest will stagnate with no interest.

Who Has Been Buying?

I work in all markets across Europe. I sell to lots of Brits and lots of non-Brits. From the huge number of sales we have had between 2020 and 2025, there were a total of 25 different nationalities. 31% of our sales were to British, 8% were to Spanish, 7% to each of Belgian, German and Irish and 40% were across the rest, which were Czech, Italian, Swedish, French, Swiss, Romanian, Polish, Slovenian, Russian, Dutch, Lithuanian, Hungarian, Slovakian, Icelandic and Norwegian. The number of buyers from these countries is rising and this is a market we are paying a lot of attention to.

So the British market is still our largest but has fallen as an overall percentage of our sales.

What Kind of Offers Are People Making and Accepting for Property in Tenerife?

In 2021, the accepted offer was 97% of asking price over all of our sales.

In 2022 the average accepted was identical at 97% of asking price.

In 2023 and 2024, it was 96% of asking price.

The large number of nationalities show why it is more important than ever to be targeting buyers from the rest of Europe, as well as the UK. Countries like Czech Republic, Hungary, Romania and Poland are very active, as are the Baltic states. I massively increased our marketing budget in 2020 as the Covid restrictions kicked in and that paid off for me and for my clients who wanted to sell. Especially when many agencies pulled back and reduced their marketing spend (some to zero.) To this day many agents here market only on one or two Spanish portals, neglecting the 10 to 15 international portals where a lot of the buyers are coming from – they do not have the marketing budget to fully exploit all of the marketing channels now available.

Has Brexit Affected Property Prices in Tenerife?

The 90/180 rule does not appear to be affecting demand – owners can still spend up to 6 months a year here. Looking at buyers from the UK, most of them tend to be of working age and generally looking to spend 2 or 3 weeks at a time here so aren’t really affected.

Sellers Expectations on Prices

So far as sellers, for the past 15 years or more, 95% of my sales have been to cash buyers. So when these owners come to sell, very few of them have mortgages and those that did, have paid them off.

This is very different to how it was pre-financial crisis when most bought with Spanish mortgages at high LTV (80% – 100% of price.)

A lot of the sellers I deal with are well into their 70’s. They are retired, own outright, have pension income and are under little to no pressure to sell other than they think it’s about the right time for them. There is rarely any real pressure on sellers to find a buyer quickly.

There may be people of working age who need to sell (cash flow issues with business back home etc) but I haven’t seen and am not seeing much of this at all. If priced correctly, properties will sell close to asking price.

Are Prices Falling in Tenerife?

So far, definitely not! They have been increasing overall as supply has tightened. The market is very buoyant and the lack of properties for sale combined with enormous demand from buyers means those who have been patiently waiting for a property market crash, have been very much left behind.

Will We See Huge Price Drops on Properties in Tenerife?

I really don’t think so. I just don’t see much of anything driving prices down. Given the demand at the moment, most properties that are priced sensibly will attract interest and very likely sell, so the impetus to drop prices further is simply not there. We have been through Covid, lockdowns, travel restrictions etc, an ongoing cost of living crisis, the war in Ukraine and rising inflation, and prices have not fallen, demand is higher than ever and sales are continuing.

Advice for Buyers

If you want to buy a well-priced property, find one that is for sale at a price you are happy with, that makes sense in the current market and make a sensible offer on it. You may well have to pay more for it now than you would have last year or the year before, perhaps quite a lot more. But if prices keep going up the way they have been, then now is the best time for you to buy.

And if the property is affordable, don’t lose it because they wouldn’t accept your offer – think about whether for the difference between the asking price and your offer, is it worth losing and having to start all over with your search and then maybe not being able to find another?

Need more information about selling?

For a complete, no obligation valuation of your property including a full breakdown on all of the costs involved, you can contact me by filling out the form below: