5 islands to invest in the Canary Islands with high profitability. Know the investment opportunities of each island to get your real estate operation right.
The price of housing in the Canary Islands has set a new record in the month of October, registering the highest price per square meter since records have been kept. This is shown in the price history published by the portal Idealista. Specifically, the price of housing in the Canary Islands stood at 2,767 euros per square meter, which represents an increase of 16.3% over the price of housing recorded a year ago.
The Canary Islands archipelago has become the target of both national and international investors, becoming a highly coveted destination due to its combination of profitability, unique landscapes, stunning beaches and a delightful subtropical climate.
Where to invest in the Canary Islands?
If you are looking for the best island in the Canary Islands to invest or simply want to buy a second home in the Canary Islands to enjoy your vacations, here is a selection of opportunities in the archipelago.
| Island capital | Price €/m² (October 2019) | Price €/m² (October 2024) | Percentage change |
| Santa Cruz de Tenerife (Tenerife) | 1.771€ | 2.908€ | 64,20% |
| Puerto del Rosario (Fuerteventura) | 1.275€ | 1.665€ | 30,58€ |
| Arrecife (Lanzarote) | 1.447€ | 1,871 (*price September) | 29,30% |
| Las Palmas de Gran Canaria (Gran Canaria) | 1.972€ | 2.392€ | 21,29% |
| Santa Cruz de la Palma (La Palma) | 1.314€ | 1.460€ | 11,11% |
Investing in Tenerife
Tenerife is the largest and most populated island of the Canary Islands. With an area of 2,000 km2, Tenerife has a diversified economy and a dynamic real estate market, which means that we can find the largest real estate offer in the Canary Islands.
Tenerife is ideal for those looking for variety in urban, rural and beach environments. Areas such as Costa Adeje and Los Cristianos are luxury destinations popular with investors and tourists.
Profitability in Santa Cruz de Tenerife
According to Idealista’s price history, housing in Santa Cruz de Tenerife has increased in price by 64.20% in the last 5 years, from €1,771 in October 2019 to €2,908 in October 2024.
Santa Cruz de Tenerife stands out from other islands for being the administrative and economic center of the Canary Islands, offering great business and employment opportunities. It has excellent connectivity thanks to its port and airport, which facilitates both trade and tourism. Despite its increase, the price of housing in Santa Cruz de Tenerife is still more competitive than in other coastal areas of Spain.
Investing in Fuerteventura
Fuerteventura is famous for its long golden sandy beaches, crystal clear waters and relaxed atmosphere. It is the ideal choice for those looking for quality of life and tranquility. The areas of Corralejo, Caleta de Fuste and Costa Calma are perfect both for living and for profitable investments in the tourism sector.
Profitability in Puerto del Rosario
The price of housing in Puerto del Rosario has increased in price by 30.58% in the last 5 years according to the Idealista price index, going from 1,275 euros in October 2019 to 1,665 euros in October 2024.
Fuerteventura is currently considered the best island to invest in the Canary Islands as it combines high profitability (more than 30% over 5 years in the capital) with competitive prices. If prices follow the same evolution as they have been in the last 5 years, we can currently buy a house in Puerto del Rosario of 70m2 for 116,550 euros, and sell it 5 years later for 151,515 euros, which would mean an absolute gross profitability of 34,965 euros.
In addition to investment in home buying and selling, Puerto del Rosario also has a growing demand for rental properties due to the attractiveness of its beaches and the tranquility it offers for those looking for a home or a second residential destination.
*As a real estate agency specializing in the island, we want to put at your disposal our latest real estate report in Fuerteventura, a PDF in which you will find information on the most expensive and cheapest areas to buy housing on the island, price developments, number of registered operations and other information of interest to those who wish to intervene in the real estate market on the island.
Investing in Lanzarote
Lanzarote is known for its volcanic landscape, something that attracts residents and tourists in search of a quiet and exclusive environment. Lanzarote is a very attractive island especially for investing in properties for tourist rental or holiday enjoyment.
Profitability in Arrecife
Arrecife is the capital of the island of Lanzarote and, according to the Idealista price index, has increased the average price of its real estate by 29.30% in the last 5 years. If buying a home in Arrecife in October 2019 cost 1,447 euros per square meter, in September 2024 that value has increased to 1,871 euros.
Arrecife is also a very interesting population of the Canary Islands to invest through rental, both tourist and residential. Its strategic location near the airport and its wonderful beaches, ensures a constant flow of visitors, which boosts profitability.
Investing in Gran Canaria
Investing in Gran Canaria’s real estate market offers various opportunities, supported by a stable economic environment and a constant demand in both the residential and tourism sectors. In addition, Gran Canaria concentrates close to 80% of the new construction supply in the Canary Islands.
Profitability in Las Palmas de Gran Canaria
Las Palmas de Gran Canaria, as the capital and most populated city, is the main focus of attraction, which indicates a solid demand and a great potential for profitability for investors.
According to the Idealista price index, Las Palmas de Gran Canaria offers a gross return of 21.29% over 5 years. This is a very interesting return on investment, especially considering that the price of housing in this city is somewhat higher than in most of the other islands of the archipelago. Specifically, buying a house in October 2024 in Las Palmas de Gran Canaria costs 2,392 euros per square meter on average.
Investing in La Palma
La Palma is a very interesting island due to its focus on rural and sustainable tourism, being one of the least developed islands in the Canary Islands in terms of tourism. Known as ‘La Isla Bonita’, it is characterized by green landscapes and sunny weather. It should be noted that due to the eruption of the volcano for months, the interest towards the island grew, raising the price of its real estate considerably.
Profitability in Santa Cruz de La Palma
Santa Cruz de La Palma has the cheapest price per square meter of the 5 population centers analyzed, which is an opportunity for small and medium investors who wish to invest in the Canary Islands without making too high an outlay of money.
Despite this, the price of housing in the capital of La Palma has increased by 11.11% in the last 5 years, placing the price of housing in October 2024 at 1,460 euros according to the Idealista price index.
Investing in the Canary Islands with high profitability
Fuerteventura is one of the most stable islands to invest in housing in the Canary Islands. Its balance between profitability, competitive prices and tourist attraction, make Fuerteventura a safe option when investing in real estate.
If you are looking for an investment opportunity in Fuerteventura, Destiny Home can help you find it. Make an appointment with one of our advisors, explain us what type of investment you are looking for and we will show you the investment opportunities that best match your needs.
