Property Prices in South Tenerife Surge by 73% Over Five Years
The cost of buying property in south Tenerife’s tourist areas has increased by an average of 73% since 2020, reflecting a significant shift in the real estate market driven by various factors, including heightened demand and limited availability.
Significant Price Increases in Key Areas
According to data from property portal Idealista, municipalities such as Adeje, Arona, Granadilla de Abona, and San Miguel de Abona have experienced dramatic price hikes, making them some of the most sought-after locations for property investment in the region.
Adeje, the most expensive municipality in the area, has seen the average price of second-hand homes rise from €2,504 per m² in October 2020 to €4,485 in July 2025, marking a staggering 79% increase, the steepest in the region. This surge has positioned Adeje as a prime destination for both local and international buyers.
In addition, Costa Adeje remains the island’s priciest area at €5,041 per m², while Tijoco-La Quinta-Caucho recorded the highest annual growth rate at an impressive 17.1%. This growth indicates a robust demand for properties in these desirable locales, further driving up prices.
Growth in Other Municipalities
Neighbouring Arona has also seen significant increases, with prices climbing from €2,242 per m² in 2020 to €3,675 in 2025, a rise of 64%. Playa de las Américas continues to be the costliest location in the south at €5,873 per m², showcasing its enduring appeal among buyers looking for premium properties.
Granadilla de Abona has experienced aggressive year-on-year growth, with prices up 22% overall and an astonishing 75.6% increase since 2020. Popular coastal spots like El Médano (€3,824 per m²) and Los Abrigos (€3,580 per m²) remain in high demand, attracting both investors and those seeking vacation homes.
In San Miguel de Abona, prices have climbed 68% over five years, with hotspots like Golf del Sur and Amarilla Golf averaging €3,320 per m². This trend highlights the area’s growing popularity among buyers looking for both residential and investment opportunities.
Even traditionally residential areas such as Las Chafiras have seen rapid appreciation, increasing by 17.6%. This broad-based growth across various municipalities indicates a strong and sustained interest in the south Tenerife property market.
Overall, the south of Tenerife is experiencing sustained upward pressure on housing costs, driven by high demand from foreign buyers and limited supply. The combination of these factors is reshaping the real estate landscape, making it increasingly competitive for potential buyers.
Implications for Buyers
The trend indicates that buying property in Tenerife’s south is becoming increasingly expensive, regardless of location. This situation presents challenges for both tourists and residents looking to invest in the area. As prices continue to rise, potential buyers may need to reassess their budgets and consider their options carefully.
For many, the dream of owning a property in this beautiful region may become more elusive as the market evolves. Buyers are encouraged to act swiftly and strategically to secure their investments before prices escalate further.
Key points
- Property prices in south Tenerife have risen by an average of 73% since 2020.
- Adeje has seen the highest price increase at 79%, with average prices reaching €4,485 per m².
- Arona’s property prices increased by 64%, now averaging €3,675 per m².
- Granadilla de Abona has experienced a 75.6% increase in property prices since 2020.
- San Miguel de Abona’s prices have climbed 68%, with hotspots averaging €3,320 per m².
- Demand from foreign buyers and limited supply are driving the price increases.
- Buying property in the south of Tenerife is becoming increasingly expensive for all buyers.
