Rent prices in the south of Tenerife not likely to be decreasing

Isidro Martín, a real estate expert, and Manuel Fitas, a trade unionist, concur on the significant demand in tourist regions and the employment "crisis" brought about by the elevated expenses and prices.

The assessment provided by both Manuel Fitas, the Secretary-General of Sindicalistas de Base, and Isidro Martín, the Chief Executive in the Canary Islands of the Association of Professional Real Estate Experts, paints a bleak picture for rental prices in Tenerife, particularly in the southern part of the island. According to Manuel Fitas, this situation may eventually “overwhelm the tourism sector.” Both experts agree that there are no signs of rental prices decreasing because “demand far exceeds supply,” as stated by Isidro Martín.

Martín highlights that in areas such as Granadilla, Arona, Adeje, and Guía de Isora, the demand for housing is incredibly high. This is mainly due to the abundant supply of properties, both for sale and rent, in these municipalities, making them attractive to large investors, especially for vacation homes. He emphasizes the need to “resume the construction of subsidized housing, which hasn’t been done in the last 20 years,” although he acknowledges that this is a long-term solution. He also calls for government intervention in acquiring unfinished or closed buildings and making them available for social or affordable rent, as announced.

Rent prices in the south of Tenerife not likely to be decreasing.

However, where Martín and Fitas disagree is in attributing the housing crisis in southern Tenerife and the metropolitan area solely to holiday rentals. Martín believes that the new Housing Law has increased the supply of holiday rentals and driven away residential rentals. He sees it as government interventionism, leading to a potential disappearance of rental supply. On the contrary, Fitas argues that holiday rentals have displaced workers from tourist areas to more inland regions. He points out that this issue, which was already a concern in 2014, still affects workers today, as many refuse hotel jobs due to a lack of affordable housing for their families.

As a potential solution, Fitas proposed to Ashotel the elimination of split shifts in the tourism sector. In discussions with the Adeje Town Hall, the possibility of freeing up land for the construction of 300 affordable rental homes (300 euros for one bedroom, and 500 euros for two) was also raised. Currently, the price per square meter ranges between 12 and 15 euros, resulting in an average rent of 700 euros for a small 60-square-meter apartment. Despite these high prices, finding available rental properties remains a considerable challenge.

Scroll to Top