Buying a property in Tenerife
It’s been a top choice for spending a warm winter among welcoming people for a generation or two. But Tenerife has some surprises up its sleeve, with two different sides to the island: lush, tropical, active and adventurous, but with all the tourist essentials and nightlife for a relaxing and hedonistic lifestyle.
Property has risen in price in recent years and it is no longer the really cheap option it used to be, but that’s a testament to its enduring popularity. Getting here is easy, all year round, and the island is ideal for those who want neither a frosty winter or an over-heated summer.
Why buy property in Tenerife
The largest and most populous of the Canary Islands, Tenerife is a hit with international buyers. The island balances fun resorts and busy beaches with natural beauty. It all basks in 3,000 hours of sunshine a year, double that of the UK.
Part of the Canary Islands, Tenerife is rarely too hot in summer or too cold in winter, meaning that it appeals to retirees, second home buyers and investors equally. It has nine good-quality golf courses, waterparks, botanical gardens, vineyards and forests to enjoy, plus a famous carnival.
H3 The natural appeal of Tenerife
Tenerife is ideal for outdoorsy types. It is home to Mount Tiede, at 3,715 metres the highest peak Spain, allowing residents to combine swimming in the sea, a round of golf and a hike through snow all on the same day.
The landscape of Tenerife varies from laurel forests to banana and avocado plantations in the north to arid areas and vast fields of dried out lava from the last eruption over 100 years ago. There are deep ravines and gorges too, some leading down to dramatic cliffs such as Los Gigantes.
Along its over 300-kilometre coastline, you’ll find a variety of beaches. Some are geared towards tourists, lined with bars and ice cream emporia, and places from which to go scuba diving, snorkelling and sailing. But there are also quieter spots reserved for conserving turtles, whale and dolphin watching.
The weather in Tenerife
Tenerife enjoys almost year-round sunshine. Although Tenerife lies on the same latitude as the Sahara the climate is cooled by sea breezes and northeasterly winds.
But not always cooled. Tenerife can experience calima, a hot, dusty wind that blows over from the Sahara.
From March to October, you can expect temperatures in the 20s. August feels the heat the most with an average daily maximum of 30°C. The coldest month is January, but even then, days can be as warm as 21°C.
Weather varies between the north and the south, with the south being hotter and rarely experiencing a cloud. As a result, the south is more popular with holidaymakers.
Tenerife’s property market
The Canary Islands as a rule are not expensive, at around €1,700 per square metre. However, prices in Tenerife have risen quite sharply in recent years, up by around 30% since 2020. Part of that is down to high demand and a shortage of supply.
You will now need close to €200,000 for an apartment in a popular region such as Los Cristianos, but will see your budget stretch the furthest in lesser-known resorts and in the north of the country. Upwards of €150,000 can buy you a one- to two-bedroom apartment with access to a communal pool and gardens. For less, you could purchase an older townhouse or finca at a distance from the coastline. A lovely family villa will require a budget of €300,000.
If you are interested in a new-build property, Tenerife is the best of the Canary Islands to look for one. In desirable areas like the Costa Adeje, you’ll find penthouses and villas close to the golf course, breathtaking panoramic views and swimming pools.
How to get to Tenerife
Tenerife has two airports, Santa Cruz de Tenerife on the northeast coast and Los Cristianos on the southwest coast. Throughout the year, you can get a direct, inexpensive flight to major UK airports. London to Tenerife is about four hours and 30 minutes.
You can also travel to Tenerife via ferry, either to explore the other Canary Islands or to mainland Spain. The quickest journey time between Tenerife and Gran Canaria is an hour and 20 minutes. Tenerife to the port of Cádiz is 33 hours.
Where to buy in Tenerife
Santa Cruz
A bustling port, Santa Cruz provides all the convenient amenities of a capital, with a big dash of fun. It is home to the world’s second largest carnival, a thriving art and culture scene and nightlife that varies from slow jazz in cosy bars to crowded clubs hosting the hottest DJs.
La Laguna
The first city established in the Canary Islands, La Laguna’s Old Town is truly beautiful and has been named a UNSECO World Heritage site. Its pedestrian-friendly streets are lined with bars, restaurants and shops. As a university town, it has a lively nightlife.
Costa Adeje
A southern seaside resort destination, the Costa Adeje is superb for shopping, water sports and family-friendly beaches.
Los Cristianos
An established tourist hotspot, Los Cristianos has beautiful beaches – including a manmade one, Playa Las Vistas, made from golden sands shipped from the Sahara.
Playa de las Américas
If you love to party and be in the heart of the action, Playa de las Américas is the place to be. Veronicas Strip, a famous hedonistic hotspot, is located here.
Puerto de la Cruz
While still equipped with great facilities and beaches, Puerto de la Cruz would suit those looking for a more laidback vibe. It is home to Playa Jardin, a complex of smaller beaches with volcanic sand and lush vegetation.
Is a property in Tenerife a good investment?
The Canary Islands has an especially low property purchase tax (TPI) for a resale property, of just 6.5%. For comparison, in Valencia, it is levied at 10%.
Recently, the Canary Islands has been working towards stricter rules around holiday rentals. But Tenerife remains the most popular Canary Island, with about five million visitors per year. Plus, its pleasant year-round climate means that you need not shut down your holiday home for business outside of peak season.
Steps to buy property in Tenerife
- Search online: Determine what you can buy for your budget, as well as a list of features you would like in a home.
- Form a team of experts. Once you have chosen a handful of properties that tick your boxes, reach out to an estate agent. They will be able to talk through the area and what you are looking for in a home in greater detail. You will also need an English-speaking lawyer to ensure that the purchase is legally secure. Plus, a currency specialist like Smart Currency Exchange can help you to transfer your funds over to Tenerife. You may also want to connect with a financial advisor and a mortgage specialist.
- Book a viewing trip. Once you have your team in place, head out to Tenerife to see your pick of properties. If you haven’t narrowed down to a specific town, check the journey times between each home. If you find a home that ticks your boxes, then reconnect with your professional team and make an offer.
- Once you have made an offer: If the seller accepts your offer, you will sign a reservation contract and pay a fee to take it off the market. While surveys are not the norm in Spain, many international buyers prefer to have one. Then, you will sign and pay the deposit, around 10% of the purchase price. As you’ve now committed to buying your dream Tenerife home, lock in your exchange rate to ensure that you do not lose out to moving exchange rates. Meanwhile, your lawyer will contact the notary to ensure the legality of the sale.
- Hold the keys in your hand: You will need to sign the sale contract, escritura pública at the notary’s office. Finally, pay the balance of the purchase price, minus the deposit you have paid. You must also pay the relevant taxes (ITP), stamp duty, notary fees and legal fees.