Overview

As we wrap up 2025, Tenerife's property market shows stable demand, modest price growth in most areas, and signs of softening in high-performing locations. First-time buyers and investors should pay attention to zones with consistent growth and newly set historical highs. Sellers are encouraged to price realistically to avoid stagnation in listings.

Price Snapshot (€/m², MoM %, QoQ %, YoY %)

Analysis by Area

Costa Adeje

• Slight monthly increase (+1.3%), reaching a new record of 5,155 €/m².
• The market here remains solid with a 7.9% annual growth.
• Listings remain steady, suggesting supply is stable.

Los Cristianos – Palm Mar

• New record at 4,431 €/m², with consistent quarterly and annual gains.
• High buyer interest with more listings than last month.

Costa del Silencio – Las Galletas

• Price per square metre now at 3,301 €/m².
• This area shows a healthy 10.9% increase YoY.
• Still relatively affordable, attracting both local and overseas buyers.

Playa de las Américas

• Continues to lead the high-end bracket.
• 16.4% YoY growth and a new high of 6,276 €/m².
• Low inventory keeps pushing prices up.

Golf del Sur – Amarilla Golf

• Climbing steadily again to 3,401 €/m².
• Prices still below historical peak, but up 12.3% YoY.

Callao Salvaje – Playa Paraíso

• Back on the rise with 4,316 €/m² and a strong 11.2% YoY.
• Remains popular with second-home buyers.

Playa San Juan

• Drops further to 4,962 €/m², down 10% from its peak.
• Still a prime zone, but market cooling off.

Acantilados de Los Gigantes

• Continues slight decline to 4,278 €/m².
• Down 2.1% annually and below its 2024 peak.

Puerto de Santiago

• Up again to 3,720 €/m², maintaining solid yearly growth.

  
  

Takeaways

• Playa de las Américas and Costa Adeje remain the most expensive.
• Los Cristianos, Palm Mar and Costa del Silencio are drawing strong investor demand.
• Playa San Juan is correcting after hitting record highs.
• Puerto de Santiago continues steady growth.

  
  

2026 Outlook

The recent VV (holiday rental) legislation could reduce speculative buying and lower short-term rental stock.

This may:

• Keep prices stable in tourist zones
• Push demand for licensed properties higher
• Create more realistic pricing among sellers

Buyers should act fast if they find something suitable. Inventory remains tight in many zones.

Sellers should price sensibly. Overpriced properties are sitting too long.

FAQ:

Will prices keep rising in 2026?

Likely moderate. VV law changes could cool down speculation, but long-term value in Tenerife could remain strong.

Is now a good time to buy?

Yes, if you're looking long-term. Reserve the right property quickly; demand is still high for now.

Is this a seller’s market?

It depends on the area. Prime and mid-tier zones priced right still move quickly. Overpricing slows down sales.

All data sourced from idealista.