RENTAL PRICES IN TENERIFE ARE RISING

Rental prices in Tenerife are rising significantly, as on the other islands, partly due to the island’s increasing popularity among both tourists and investors.

This trend is driving up prices and increasing demand for exclusive housing. The rental price in Tenerife and the other Canary Islands rose by 3.6% in February compared to the previous month and by 11.9% compared to last year, resulting in an average price per square meter of 14.45 euros, according to data from the Fotocasa Real Estate Index.

Fotocasa

Per province, the year-on-year increases were 13.3% in Las Palmas and 10.7% in Santa Cruz de Tenerife, with respective average monthly prices of 14.86 euros and 14.02 euros per square meter. Fotocasa This accelerated the increase in rental prices in the Canary Islands from 10.8% in February 2024 to 11.9% in the same month in 2025.

In absolute terms, prices rose from 12.91 euros per square meter in February 2024 to 14.45 euros in February 2025. Rental prices continue to rise at a double-digit rate, similar to the pace during the market boom of 2007. Although price levels are comparable to those 18 years ago, the cause today is different. The demand for rental properties is historically high while supply is historically low, resulting in upward price pressure, according to María Matos, Director of Research and spokesperson for Fotocasa.

Top rankings

Highest rankings Compared to a year earlier, rental prices in February increased in all 17 autonomous regions of Spain. The strongest increases were recorded in Aragón (15.3%), Madrid (14.6%), Asturias (13.8%), Murcia (13.6%), La Rioja (12.6%), Catalonia (12.5%), Navarra (12.4%), Canary Islands (11.9%), Valencia (10.2%), and Andalusia (10.0%). Following these were Castilla-La Mancha (9.6%), Galicia (9.6%), the Basque Country (8.9%), the Balearic Islands (6.7%), Castilla y León (6.6%), Extremadura (4.5%), and Cantabria (0.5%).

Regarding the ranking of autonomous communities with the most expensive rental housing in Spain, the four regions with prices exceeding 15 euros per square meter per month are: Madrid with 20.96 euros, Catalonia with 18.50 euros, the Balearic Islands with 18.34 euros, and the Basque Country with 16.62 euros.

This substantial increase in rental prices underscores Tenerife’s attractiveness for investors but also highlights the necessity of measures to ensure affordable housing for local residents. Fotocasa Highest rankings