The south of Tenerife has strengthened its position as the leading hub of the luxury property market in the Canary Islands. According to the latest data from the Fotocasa Real Estate Index, the most expensive neighbourhood in the archipelago is located on the island, where housing prices have reached record levels and now stand at more than twice the Spanish average.
The province of Santa Cruz de Tenerife continues to dominate the high-end segment, accounting for six of the ten most expensive residential areas in the Canary Islands. The strongest growth is concentrated in the south of the island, driven by sustained demand and limited housing supply.
Playa Fañabé Alto leads the ranking
At the top of the list is Playa Fañabé Alto, in the municipality of Adeje, which has become the most expensive residential area in the Canary Islands.
The average price for second-hand housing in this neighbourhood now stands at €6,578 per square metre, compared with the national average of €2,879 per square metre. This means that property values in Playa Fañabé Alto are 2.3 times higher than the Spanish average.
For buyers, this translates into a significant financial commitment. An average 80-square-metre property in the area currently costs around €526,248, representing an annual increase of more than €30,000, or 6.2%.
Other high-priced areas in Tenerife and Gran Canaria
Tenerife’s dominance in the premium segment is reinforced by the strong presence of other southern and urban districts in the ranking. Following Playa Fañabé Alto, the most expensive neighbourhoods are:
- Playa de las Américas (Arona/Adeje): €5,824/m²
- Los Cristianos (Arona): €4,941/m²
- Callao Salvaje – Playa Paraíso (Adeje): €4,787/m²
- Torviscas Centro and Alto (Adeje): €4,597/m²
- Santa Catalina – Canteras (Las Palmas de Gran Canaria): €4,293/m²
- Guanarteme (Las Palmas de Gran Canaria): €4,087/m²
- Duggi – Rambla – Los Hoteles (Santa Cruz de Tenerife): €4,022/m²
These figures confirm the concentration of high-value housing in tourist-oriented and coastal locations, as well as in central urban districts.
Strong growth in Gran Canaria
Although Tenerife leads in absolute prices, the highest percentage increases have been recorded in the province of Las Palmas. The neighbourhood of San Gregorio, in Telde, has registered a 50% rise in just one year, bringing average prices to €2,787 per square metre.
This sharp growth reflects growing interest in areas previously considered more affordable, as buyers seek alternatives to the most expensive districts.
A “double reality” in the housing market
According to María Matos, spokesperson for Fotocasa, the current market reflects a “double reality”.
On the one hand, demand is becoming increasingly concentrated in prime locations, where supply is limited and buyers have high purchasing power. On the other hand, there is a growing shift towards peripheral and secondary areas, particularly those linked to second homes and holiday properties, which is also pushing prices upwards.
This dual dynamic is reshaping the housing landscape across the islands.
Risks of market pressure and residential exclusion
The report warns that such rapid price growth poses significant risks if housing supply does not expand at the same pace as demand. Rising interest from foreign investors and buyers in the luxury segment continues to exert upward pressure on a market that is already operating at historically high levels.
Experts caution that, without effective measures to increase affordable housing, these trends could lead to greater residential exclusion, making access to home ownership increasingly difficult for local residents.
