A guide to understanding the declaration of high-density residential areas in Adeje, Tenerife

A basic guide to grasp the new residential measure under discussion in numerous southern municipalities of Tenerife, burdened by tourism overflow.

During the plenary session held on April 3rd, the Adeje Town Council took a significant step by voting to request the Canary Islands Government to conduct the necessary studies to declare the southern municipality as a “high-density residential area.” This decision, marking the third such instance in the Canary Islands after La Orotava and Granadilla, underscores the growing concern over the housing situation in certain regions. By initiating this process, Adeje aims to address the pressing issues surrounding rental prices and housing affordability within its jurisdiction.


At the heart of this initiative lies the Housing Law’s provision for the declaration of high-density residential market areas, which seeks to tackle the escalating costs of rent and essential living expenses. With a focus on restoring balance to the housing market, this legislative framework empowers local authorities to identify areas facing a shortage of housing supply relative to the needs of residents. Criteria for determining high-density areas include rental and living expenses surpassing 30% of average household income and a rental cost increase exceeding the regional Consumer Price Index (CPI) by 3% over the previous five years.

A guide to understanding the declaration of high-density residential areas in Tenerife

Upon receiving an explicit request from concerned municipalities, competent housing administrations assume responsibility for the declaration process. In the case of Adeje, following a favorable vote in the plenary session, the town council will forward the request to the Canary Islands Government. Subsequently, the regional executive is expected to conduct a thorough assessment of rental conditions in the area, laying the groundwork for the establishment of a reference price index for rental housing.

The proposed reference index aims to provide a benchmark for rental prices, facilitating greater transparency and affordability for tenants. While landlords are encouraged to align their rental rates with the index, adherence remains optional. However, concerns have been raised regarding the methodology and potential implications of this index. Critics question the criteria used for valuation and highlight potential inconsistencies that could arise from its application.

A guide to understanding the declaration of high-density residential areas in Tenerife

Despite these concerns, proponents of the measure believe that it represents a critical step towards addressing housing affordability challenges in high-density residential areas like Adeje. By introducing measures aimed at curbing excessive rental costs and promoting fair housing practices, local authorities hope to create a more equitable and sustainable housing market for residents. As the process unfolds, stakeholders will closely monitor developments to assess the effectiveness of these initiatives in addressing the housing needs of communities across the Canary Islands.

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