While the sale and purchase of homes is losing strength in the Canary Islands, rental housing in the Canary Islands in 2025 is consolidating. In Fuerteventura, where tourist pressure and lack of supply set the pace of the market, this trend is accentuated: there is more and more demand for rentals and less available housing.
For homeowners, this opens a clear window of opportunity. Whether you have an unused property or are considering an investment.
Why are sales falling and rentals rising in the Canary Islands?
According to the latest data from the General Council of Notaries, in April 2025, sales and purchases in the Canary Islands fell by 17.6% compared to the same month of the previous year. This is a notable drop, especially when compared to what has happened in the rest of the country, where sales and purchases have risen slightly.
What is happening? Many people who previously thought about buying have decided to wait. Housing prices are still high, interest rates are making mortgages more expensive and economic uncertainty is not helping. The alternative? Renting.
And this change is already being noticed. According to Fotocasa Research, rental demand has increased in the Canary Islands in 2025, while the intention to buy has fallen. In fact, only 3% of individuals are offering their homes for rent. In other words, there is less supply than ever and more people looking.
Lack of supply will drive up rental housing in the Canary Islands in 2025
While buying and selling is losing strength, renting is consolidating as the predominant option for many Canary Islanders. According to Fotocasa Research, in 2025 the demand for rental housing has continued to increase, while the supply has only reduced: only 3% of individuals offer their homes for rent. This imbalance is causing a sustained increase in prices and greater competition among tenants.
In fact, the average rental price in the Canary Islands reached 15.07 €/m² in May, which means an average of 1,206 € per month for a house of 80 m².which means an average of 1,206 € per month for a house of 80 m². Added to this tension is the scarce supply of affordable housing throughout the archipelago, with only 69 homes available for less than €600 per month at the beginning of April 2025.
In addition, the Bank of Spain warns that up to 50% of the housing stock in tourist areas is being used for holiday rentals, which further aggravates the shortage of available residential housing. This situation translates into a market where high demand and limited supply put upward pressure on prices and accelerate tenants’ decision making, especially in areas such as Fuerteventura, Tenerife and Gran Canaria.
What can homeowners do in the face of the rental housing boom in the Canary Islands 2025?
This scenario of scarcity and high demand opens a very interesting way for owners who, until now, did not consider renting as a strategic option. Whether because they have an empty property or because they are considering an investment, renting today in Fuerteventura offers advantages:
High profitability
Rental prices have increased due to the lack of supply. This means a higher net return than many owners would obtain with traditional financial products or even with the outright sale of the property.
Stability and lower turnover
The lack of alternatives leads many tenants to seek long-term leases. This translates into more stable leases, recurring income and lower tenant turnover.
High level of immediate demand
Publishing a property for rent in areas such as Corralejo, Caleta de Fuste or Puerto del Rosario usually generates multiple requests in a few days. This allows us to select solvent profiles and minimize unoccupied periods.
Professionalization of management
The landlord of 2025 does not need to face the rental process alone. There are specialized agencies that take care of:
- Market research and optimal pricing.
- Professional photographic report and publication in portals.
- Selection and filtering of tenants with guarantees.
- Contract drafting, bond management and collection follow-up.
- Maintenance, incidents and conflict resolution.
Professional rental management not only reduces risk, but also improves the experience for both the landlord and the tenant.
Do you own a property in Fuerteventura and would like to know exactly how much profitability you are eligible for? Would you like to receive a profitability study before putting your home on the market? At Destiny Home you can find the advice you are looking for.
Questions and answers to invest in housing in Fuerteventura
Investing in real estate in Fuerteventura is profitable due to the high demand for tourism and long term rentals. The average holiday rental price is around 108 €/night, and the annual revaluation of properties has exceeded 18% in 2025.
Yes, although they have risen, they are still lower than in other islands such as Tenerife or Lanzarote. For example, in areas such as Puerto del Rosario or Gran Tarajal you can still find opportunities with a price per square meter below the Canary Islands average.
Second-hand properties are the most in demand (around 80% of transactions). This offers the investor opportunities for renovations, revaluation and rental profitability.
Investors benefit from a reduced transfer tax (6.5 %) and deductions for installations such as solar panels. In addition, imported products can be priced up to 30 % lower due to the Canary Islands tax regime.
The regular rental consists of renting a dwelling for a long period of time. In this type of rental, tenants use the dwelling as their primary residence for the duration of the lease.
The profitability of the usual rent is calculated using the formula:
PROFITABILITY OF USUAL RENT= (TOTAL CAPITAL INVESTED-INCOME-EXPENSES) ×100
For example, if you rent a property in Fuerteventura for 900 euros per month (10,800 euros per year), with annual expenses of 1,800 euros and an acquisition cost of 140,000 euros, the return would be 6.42%.
Tourist rental is the rental of a dwelling for short periods of time. Guests use the housing on a temporary basis and are considered visitors.
The profitability of the tourist rental is calculated with the formula:
PROFITABILITY OF TOURIST RENTAL = [(DAILY RENTAL PRICE x AVERAGE ANNUAL OCCUPANCY) – EXPENSES / ( TOTAL CAPITAL INVESTMENT) x 100
For example, if you rent a property in Fuerteventura for 55 euros per night with an occupancy of 150 days per year, and the annual expenses are 1,800 euros, the profitability would be 5.89%.
