Last updated on January 18th, 2024
best places to Airbnb in Tenerife
Key Takeaways
• Tenerife’s stable economy, solid tourist market, and high standard of living have helped hosts earn a good passive income by owning Airbnb listings.
• Learn the reasons why Tenerife can be seen as a profitable rental market for property investors targeting this location.
• The top 10 most profitable areas in Tenerife are revealed! And be in the know of their recommended property size and Airbnb data.
Introduction
The Canary Islands is home to exotic destinations that will make people think they’re in paradise. Among its paradisiacal islands, Tenerife stands out with its world-class sceneries, charming cities, nice weather, and a wide array of services that assure only the best living conditions.
According to Airbnb, Tenerife stands out for its welcoming atmosphere that makes visitors feel at home. This island’s cities, particularly Santa Cruz, are considered the most hospitable in Spain as well as a destination that any digital nomad would absolutely love.
If you’re considering targeting the rental market of Tenerife, you should consider essential factors. For instance, learning about the most profitable locations to buy an investment property is a must. And we want to lend you a hand on this case!
In this article, we’ll unveil the best places to invest in Airbnb in Tenerife, and some of the expectations when investing in holiday homes on this island. Continue reading to learn more about this market!
Why invest in Real Estate in Tenerife, Spain?
Buying an investment property in Spain, specifically in the cities of Tenerife, is a smart way of securing a source of income that can help you achieve financial freedom. But what advantages can Tenerife’s cities offer to real estate investors?
Check out some of the reasons why investing in a rental property in Tenerife is an excellent idea:
Growing economy
Tenerife financial situation enjoys steady growth, thanks to its flexible business system and its competitive and economic transparency. The island is home to major corporations and over 200 foreign companies, which greatly impact the local economy.
While the strongest industry in Tenerife is tourism due to its high demand, the island is slowly diversifying its economic sectors. For instance, sectors related to energy, light industries, and digital companies have been gaining ground in recent years.
Enjoy great living conditions
Living in or visiting Tenerife allows you to experience a laidback lifestyle amidst spectacular sceneries and friendly locals. The island is a vibrant yet relaxing place to live and work – thanks to its pleasant weather conditions, amount of leisure options, low crime rates, as well as delicious cuisine. That’s why is one of the favorite destinations for digital nomads!
Additionally, the living cost and housing market of Tenerife are relatively affordable compared to other cities in Spain and even the rest of Europe. While it’s fairly cheaper to live on this Island, you still get to have easy access to high-quality services & amenities. Tenerife real estate market offers a wide range of prices, with the average property price of €214k.
Bonus: Canary Islands offers one of the lowest tax rates in Europe, with only 7% of the added value of the product.
Exciting experiences await you!
Looking for unparalleled island vacation experiences? Then Tenerife is the best destination for you. Also known as the island of the thousand experiences, there’s no lack of leisure options that visitors can enjoy every day. Thus, you must visit Tenerife with the inclination to have lots of fun.
With year-round mild temperatures, you can easily dip into its pristine beaches, or walk through the trails of its stunning lush forests. Moreover, discovering striking landscapes composed of volcanoes, cliffs, and slopes has never been easier!
Additionally, Tenerife is home to charming municipalities with fascinating festivities and traditions as well as important historical centers, museums, restaurants, and green spaces.
Is Airbnb Profitable in Tenerife?
Wondering if buying a holiday home in Tenerife is a good business idea? Take it easy! Airbtics assures you that investment properties in Tenerife can help you generate a nice income stream. That said, the profitability that a listing can create also depends on specific factors like the property size and location.
Tenerife offers a stable rental market where Airbnb hosts can secure a nice passive income. According to our previous blog, Tenerife holds the 3rd spot of the best places to invest in Airbnb in the Canary Islands!
For instance, an Airbnb host can expect an average annual revenue of €33,645 and a median occupancy rate of 65% for operating a 3-bedroom property in Tenerife as confirmed by Airbtics’ data.
Top Locations in Tenerife to Buy Investment Property
Tenerife is the most populous island in the Canary Islands, which is divided into 31 vibrant municipalities. Consequently, you can expect the profitability in each area to be different, so it can be a challenge to choose the right location to buy a property to let in Tenerife.
Check out the best areas in Tenerife that are recommended for rental properties:
1. Costa Adeje
- Total Number of Airbnb Listings: 1,387
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): €474,000
- Airbnb Annual revenue: €54,634
- Gross rental yield: 11.50%
2. Playa de las Américas
- Total Number of Airbnb Listings: 565
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €300,000
- Airbnb Annual revenue: €38,737
- Gross rental yield: 12.91%
3. El Médano
- Total Number of Airbnb Listings: 483
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): €295,000
- Airbnb Annual revenue: €35,304
- Gross rental yield: 11.97%
4. La Laguna
- Total Number of Airbnb Listings: 117
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €209,000
- Airbnb Annual revenue: €25,962
- Gross rental yield: 12.42%
5. Puerto de la Cruz
- Total Number of Airbnb Listings: 686
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €230,000
- Airbnb Annual revenue: €25,111
- Gross rental yield: 10.92%
6. Los Cristianos
- Total Number of Airbnb Listings: 1,019
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €295,000
- Airbnb Annual revenue: €25,087
- Gross rental yield: 8.50%
7. El Rosario
- Total Number of Airbnb Listings: 152
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €210,000
- Airbnb Annual revenue: €24,068
- Gross rental yield: 11.46%
8. Santa Cruz de Tenerife
- Total Number of Airbnb Listings: 658
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €192,500
- Airbnb Annual revenue: €23,265
- Gross rental yield: 12.09%
9. Los Realejos
- Total Number of Airbnb Listings: 201
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €125,000
- Airbnb Annual revenue: €21,809
- Gross rental yield: 17.45%
10. Puerto de Santiago
- Total Number of Airbnb Listings: 349
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €255,000
- Airbnb Annual revenue: €20,238
- Gross rental yield: 7.94%
Summary
Buying a property to let in Tenerife can bring rewarding benefits and experiences to investors if we consider the advantages that its rental market offers. Thus, we can conclude that this island can help investors to obtain a good return on investment.
Yet, it’s always important to analyze all options carefully so that you don’t miss out on better opportunities. This is why we encourage you to use the best analytics tool available in the market so that you can go through a financially rewarding experience.
After finding out the best places to Airbnb in Tenerife, it’s time to take the next step and consider long-term profitability! Weigh the anchor, set sails and pursue a promising investment journey by using Airbtics’ Airbnb calculator. Choose to stand out while maximizing your gains now!
Explore The Most Profitable Airbnb Locations in Tenerife
