Quick answer: Which archipelago offers higher profitability, the Canary Islands or the Balearic Islands?
Investing in property in the Canary Islands is today one of the most profitable and secure options in Spain. Unlike the Balearic Islands, the price per square meter is much lower, which makes it possible to obtain higher profitability with less investment. In addition, the archipelago has exclusive tax advantages, such as an IGIC of 7% and a reduced ITP, together with a stable tourist demand all year round, a solid revaluation of the market and a great potential for holiday rentals.
Investing in property in Spain continues to be a safe and profitable option, but not all locations offer the same opportunities. Two of the most attractive destinations are the Canary Islands and the Balearic Islands, both with great tourist and investment projection. However, there are clear differences between them that can directly influence the profitability we can obtain.
When looking for an investment property, which archipelago to choose?
Below, we analyze the main factors to be taken into account: price, revaluation, taxation and tourist demand.
Lower housing prices
One of the great advantages of investing in the Canary Islands is the much more affordable cost per square meter compared to the Balearic Islands. This allows entering the market with a lower initial investment and, therefore, a greater potential for profitability.
| Period | Canary Islands housing price (€ / m²) | Balearic Islands house price (€ / m²) |
|---|---|---|
| 2nd quarter 2025 | 1.996,8 | 3.518,2 |
| 2nd quarter 2024 | 1.811,8 | 3.108,7 |
| 2nd quarter 2023 | 1.698,7 | 2.869,9 |
Table based on data published by ISTAC (Canary Islands Institute of Statistics).
While the average price in the Balearic Islands exceeds 3,500 €/m², in the Canary Islands it remains below 2,000 €/m², which represents a difference of almost 80%. This makes the Canary Islands, especially Fuerteventura or Gran Canaria, ideal destinations for those looking to invest with a lower initial outlay.
Higher level of revaluation
The real estate market in the Canary Islands continues to show a positive evolution, driven by economic stability, tourist demand and the growing interest of international buyers. According to data published by ISTAC, between 2023 and 2025 the average price of housing in the archipelago has risen from 1,698.7 to 1,996.8 euros per square meter, which represents a 17.6% increase in value in just two years.
Within the Canarian real estate market, Fuerteventura is probably the most profitable island to invest in housing. In it, we find municipalities such as Tuineje that have achieved a revaluation of more than 17% in the last 12 months according to data published by Idealista.
| Municipality | Price October 2025 (€/m²) | Annual change |
|---|---|---|
| Tuineje | 2.229 | +17,5% |
| Puerto del Rosario | 1.933 | +16,1% |
| Pájara | 2.783 | +8,3% |
| Antigua | 2.659 | +6,5% |
| La Oliva | 3.301 | +4,3% |
Table based on data published by Idealista.
Puerto del Rosario and Pájara would also be two very interesting options to invest in the Canary Islands since the annual revaluation of housing in these municipalities reaches 16.1% and 8.3% respectively.
- You may be interested in: Which is the best island to invest in the Canary Islands?
Tax benefits in the Canary Islands
The Canary Islands have their own tax regime: the Economic and Fiscal Regime (REF), which offers unique advantages compared to the Peninsula and the Balearic Islands.
The IGIC (7%) replaces the VAT (21%), which considerably reduces the purchase cost of new construction. Furthermore, in the Canary Islands there is an unusual situation compared to the rest of the Communities, which only occurs in the Canary Islands and Galicia: the price of new housing is cheaper than that of second-hand housing. The more peripheral location of these developments, together with the insufficient stock of second-hand housing and the fact that new construction has been less affected by inflation, are some of the reasons behind this unusual trend.
If you are interested in new build properties, you can sign up to our Property Exchange. We will inform you about all the current new developments available in Fuerteventura and we will notify you every time a new development comes on the market.
Beyond the new construction, the transfer tax is also lower in the Canary Islands compared to other communities such as the Balearic Islands. Specifically, in the Canary Islands the ITP remains at 6.5% on the value of the property compared to 8%-13% in the Balearic Islands.
In addition to all this, there are specific incentives for business and tourism investment, such as the Canary Islands Special Zone (ZEC) or deductions for investment in fixed assets, which can also benefit those acquiring properties intended for rental or rehabilitation.
Overall, this tax framework allows investors to obtain a higher net return, with a lower tax burden and greater scope for reinvestment in new opportunities within the archipelago.
Tourist demand throughout the year
The Canary climate is one of its main attractions: sunshine and mild temperatures throughout the year. This guarantees a constant and stable tourist demand during the 12 months. In the Balearic Islands, demand is more seasonal, concentrated mainly in the summer months, which can limit income outside the high season.
How to invest in the Canary Islands with profitability
Investing in the Canary Islands, and especially in Fuerteventura, is betting on a solid, profitable and growing market. If you are thinking of buying a property or exploring different investment opportunities on the island, in Destiny Home we accompany you throughout the process: from the selection of the ideal property to the management and profitability of your investment.
In addition, if you have in mind to monetize your property through renting, Destiny Home also offers short and long term rental services, maintenance and administrative management of the properties. A comprehensive service to make investing in the island a simple process regardless of whether you live in Spain or abroad.
Contact our team and discover the investment opportunities that Fuerteventura is able to offer you.
Invest in Fuerteventura with high returns
Consult with a real estate expert to maximize your investment returns
Outstanding properties
Luxury villa in Corralejo
Reference: #SMXVHERED211025
Location: Avenida Grandes Playas, Corralejo
This villa represents the premium investment profile in Fuerteventura. Located in one of the most emblematic avenues of Corralejo, a few minutes from the beaches and the commercial center, it is aimed at an investor with a patrimonial vision, who prioritizes prime location, scarcity of product and high international demand.
From an investment standpoint, this type of asset fulfills three key functions:
- High rental profitability, with a high average ticket and sustained occupancy throughout the year.
- Capital appreciation in the medium and long term, in an area where the supply of villas is limited and foreign demand continues to grow.
- A safe haven asset, ideal for diversifying real estate assets in a consolidated tourist destination.
The buyer profile is usually foreign (German, Italian, French or Nordic), with the capacity to buy without financing and with a clear vision of return + personal enjoyment.
Urban lot in Llanos de la Concepción
Reference: #SMXVPARCELLANPTO-03
Location: Llanos de la Concepción
Investing in land in Fuerteventura remains an inconspicuous but highly profitable strategy when the location is well selected. This urban plot is located in a quiet area, well connected and with progressive residential growth.
This type of asset is particularly interesting for:
- Investors seeking land appreciation in the medium term.
- Small or patrimonial developers who wish to develop a single-family home for sale or for their own use.
- Buyers who want to enter the market with lower initial investment, versus finished product.
The key here is not immediate profitability, but anticipation. In a context of scarcity of new construction, well-located urban land steadily gains value.
Apartment with pool in Corralejo
Reference: #SMXVOASISDANT0925
Location: Corralejo
This apartment represents one of the most demanded assets by the average investor: functional housing, in a complex with swimming pool and in an area with a strong tourist attraction.
From a financial point of view, it is a very efficient product because:
- It has high liquidity in case of resale.
- Allows rental with easy management.
- It requires a more contained investment than a villa, with high occupancy rates.
It is a type of investment that is highly sought after by European investors who want profitability without complexity, delegating management and minimizing risks.
Apartment with pool in Costa de Antigua
Reference: #SMVROQDEL1120112025
Location: Coast of Antigua
Costa de Antigua has established itself as a strategic area for investors looking for lower entry prices without giving up rent.
This apartment stands out for:
- Its proximity to the airport and Caleta de Fuste.
- A constant demand for medium and short stays.
- A more functional tourist profile, which ensures rotation and occupancy.
It is a clear example of a defensive investment, with less risk and a reasonable return, ideal for first-time investors or for portfolio diversification.
Apartment in the center of Corralejo
Reference: #SMXVPTTORREMI21025
Location: Corralejo center
The apartments in the center of Corralejo are a very interesting hybrid asset. They allow:
- Residential or medium-stay rental, thanks to its proximity to beaches, leisure and services.
- Fast resale, due to its high structural demand.
This type of property tends to attract both investors and end buyers, which increases its liquidity and reduces the risk of divestment.
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.
