Tenerife Property Prices, Rents & Rental Yields

About Tenerife

Tenerife blends volcanic landscapes, Atlantic coastline, and year-round appeal, making it one of Spain’s most distinctive island markets. From resort towns to quieter inland areas, apartments here sit in a setting shaped by climate, tourism, and limited land supply.

September 2026 brings the clearest signal: prices are still moving higher, while rents have barely shifted. For apartments, the average sale price sits at €294,980, unchanged month over month but up 3.5% year over year. The average price per square metre has reached €3,780, rising 1.3% on the month and 6.2% over the past year.

That leaves investors weighing firmer entry costs against only modest rental growth. The average rent is €1,200, flat from the previous month and up 1.7% year over year, while the reported yield is 4.94%. In other words, September’s market note points to a region where capital values continue to edge forward faster than rental income, so returns are being shaped more by price growth than by rent momentum.