
2024 Property Market Report for South Tenerife
Introduction
The South Tenerife property market has demonstrated significant resilience and dynamic growth throughout 2024. Renowned for its stunning coastlines, favourable climate, and vibrant tourism sector, South Tenerife continues to attract a diverse range of buyers, from international investors to retirees seeking idyllic living conditions. This comprehensive report delves into the latest market trends, key metrics, buyer and seller behaviours, and provides insightful predictions for the upcoming year, making it an essential guide for anyone interested in properties for sale in Tenerife.
Market Overview
In 2024, the South Tenerife property market experienced robust growth, underpinned by strong international demand, increased tourism, and a stable economic environment. Key municipalities such as Adeje, Arona, and Granadilla de Abona saw substantial price increases, reflecting their popularity among both residential buyers and holiday investors. The sustained interest from a diverse buyer base, including British, German, Belgian, Eastern European, and increasingly, American investors, has been pivotal in driving the market forward.
Key Metrics
Average Property Prices (December 2024)
Location | Price/m² | Monthly Variation | Quarterly Variation | Annual Variation | Historical Maximum | Maximum Variation |
---|---|---|---|---|---|---|
Santa Cruz de Tenerife | €2,144/m² | +0.1% | +3.1% | +5.0% | €2,144/m² (Oct 2024) | 0.0% |
Adeje | €4,137/m² | +0.4% | +1.6% | +5.4% | €4,137/m² (Dec 2024) | 0.0% |
Arona | €3,452/m² | +2.0% | +2.7% | +14.8% | €3,452/m² (Dec 2024) | 0.0% |
Granadilla de Abona | €2,559/m² | +0.7% | +6.5% | +34.7% | €2,559/m² (Dec 2024) | 0.0% |
Santiago del Teide | €3,491/m² | +0.8% | +1.5% | +21.0% | €3,491/m² (Dec 2024) | 0.0% |
San Miguel de Abona | €2,641/m² | +0.1% | +0.7% | +14.7% | €2,641/m² (Dec 2024) | 0.0% |
San Cristóbal de la Laguna | €1,778/m² | +2.8% | +6.1% | +12.3% | €1,778/m² (Dec 2024) | 0.0% |
Puerto de la Cruz | €3,100/m² | +0.3% | +1.7% | +16.1% | €3,100/m² (Dec 2024) | 0.0% |
Los Realejos | €1,687/m² | +0.3% | +2.3% | +18.2% | €1,687/m² (Dec 2024) | 0.0% |
La Orotava | €1,754/m² | -0.2% | +2.6% | +24.2% | €1,757/m² (Nov 2024) | -0.2% |
Güímar | €1,752/m² | +2.6% | +3.8% | +17.8% | €1,752/m² (Dec 2024) | 0.0% |
Icod de los Vinos | €1,361/m² | +1.2% | +6.5% | +43.9% | €1,361/m² (Dec 2024) | 0.0% |
El Rosario | €1,985/m² | -1.5% | +2.7% | +3.8% | €2,030/m² (Oct 2024) | -2.2% |
El Paso | €2,184/m² | +1.3% | +2.3% | -2.0% | €2,292/m² (Nov 2022) | -4.7% |
Candelaria | €2,303/m² | +4.2% | +3.9% | +11.8% | €2,303/m² (Dec 2024) | 0.0% |
Tegueste | €1,732/m² | +6.2% | +5.9% | N/A | €1,739/m² (Aug 2011) | -0.4% |
Property Market Report for the Last Quarter of 2024 – South Tenerife
Quarterly Highlights
The final quarter of 2024 saw continued momentum in the South Tenerife property market. Key areas maintained their growth trajectories, supported by strong international demand and ongoing tourism recovery. Notably, Granadilla de Abona and Santiago del Teide exhibited exceptional price increases, underscoring their rising appeal.
Tourist Hub Areas
Tourist-centric areas like Playa de las Américas, Los Cristianos, and Costa Adeje remained hotbeds for property investment. These locations offer unparalleled access to beaches, vibrant nightlife, and a plethora of amenities, making them highly attractive for both buyers and renters.
International Buyer Demographics
- - British, German, Belgian, and Eastern European Buyers: These groups continue to dominate the market, attracted by Tenerife's favourable climate and investment potential.
- - American Investors: There has been a notable uptick in interest from U.S. investors, driven by competitive exchange rates and promising rental yields.
Buyer and Seller Behaviour in Q4 2024
Buyers:
- - Investment Focus: Properties in high-demand tourist areas and those offering modern amenities remain highly sought after.
- - Affordability Considerations: More buyers are exploring affordable options in areas like Icod de los Vinos and Güímar without compromising on essential features.
Sellers:
- - High-Demand Areas: Sellers in premium locations are confident in achieving asking prices due to limited inventory and sustained buyer interest.
- - Price Adjustments: In less competitive markets, sellers are more flexible with pricing to facilitate quicker transactions.
Opportunities and Challenges
Opportunities
- 1. Tourism-Focused Investments: High rental demand in tourist-heavy zones offers attractive yields, particularly for properties near key attractions.
- 2. Sustainability Trends: Eco-friendly properties with features like solar panels are increasingly popular, especially in luxury segments.
- 3. Emerging Buyer Markets: The growing interest from American investors presents new avenues for market expansion.
Challenges
- 1. New Rental Regulations: Stricter rental laws introduced in 2024 impose limitations on short-term rentals in certain areas, potentially affecting the profitability of investment properties.
- 2. Economic Headwinds: Rising interest rates and inflation may dampen demand from domestic buyers and smaller investors.
- 3. Limited Supply: High-demand areas such as Adeje and Santiago del Teide face inventory shortages, which could constrain market growth.
2025 Market Predictions
Despite the new rental regulations introduced in 2024, the demand for properties in South Tenerife is expected to remain high in 2025. This sustained demand is largely driven by the region's enduring appeal as a prime holiday destination and favourable investment environment. Consequently, sellers can be confident in achieving their asking prices, particularly in high-demand areas where inventory remains scarce. The continued interest from international buyers, including the burgeoning American investor segment, further bolsters market confidence. Therefore, 2025 presents a favourable period for sellers to capitalise on the strong market fundamentals and limited property supply.
Geographical Focus
Top Performing Areas
- - Adeje (€4,137/m²): Known for its luxury resorts and vibrant tourism sector.
- - Arona (€3,452/m²): A favourite among families and investors due to its diverse amenities.
- - Granadilla de Abona (€2,559/m²): Rapidly growing with significant infrastructure developments.
- - Santiago del Teide (€3,491/m²): High-end coastal properties attracting affluent buyers.
- - San Miguel de Abona (€2,641/m²): Popular for its golf courses and luxury residences.
Emerging Areas
- - Icod de los Vinos (€1,361/m²): Offers affordability and significant growth potential.
- - Güímar (€1,752/m²): Increasingly attractive due to its sustainable property developments.
- - Candelaria (€2,303/m²): Balances residential appeal with proximity to tourist amenities.
South Tenerife's property market in 2024 has showcased remarkable growth and resilience, driven by robust international demand and a thriving tourism sector. Key areas such as Adeje, Arona, and Granadilla de Abona have led the charge with substantial price increases, while emerging locales like Icod de los Vinos present lucrative opportunities for budget-conscious investors. Despite the challenges posed by new rental regulations and economic uncertainties, the market remains buoyant, with strong demand ensuring that sellers can achieve their desired prices. As we look towards 2025, the South Tenerife property market is poised for continued success, making it an opportune time for both buyers and sellers to engage in this vibrant real estate landscape.
Contact Us
For more information and comprehensive guides for sellers and buyers, contact us at The Property Gallery. Visit our website: www.thepropertygallery.com
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