Why now is the ideal time to invest in real estate in TENERIFE

Why now is the ideal time to invest in real estate in Tenerife

Tenerife’s property market presents unique opportunities for investors in 2025. With robust economic growth, new regulations on tourist rentals and geopolitical shifts, the island is more attractive than ever to both private and corporate investors.

🌎 Economic growth in Spain

Spain remains one of the fastest growing economies in the Eurozone . According to the International Monetary Fund, GDP growth is expected to reach 2.5% in 2025, despite global uncertainties such as trade tensions and political instability. The Bank of Spain has even raised its growth forecast to 2.7%, driven by strong domestic consumption and positive growth in tourism. And it is precisely this positive economic outlook that is boosting confidence in the Spanish property market, particularly in popular destinations such as Tenerife.

🏡 New regulations for tourist rentals

From April 2025, the rules for tourist rentals in Spain will be tightened. Owners will now have to obtain explicit permission from the Homeowners’ Association (HOA) before they can rent their property to tourists. This measure is intended to reduce inconvenience for permanent residents and make the housing market more accessible to local residents. Despite the stricter regulations on holiday rentals, this means that there will be more emphasis on quality and compliance with regulations, which will lead to a more stable and sustainable rental market.

🇺🇸 USA and Geopolitical Influences: The Impact of the US Elections

The recent election of Donald Trump as President of the United States has led to global economic uncertainty. His policies, focused on protectionism and renegotiating international trade agreements, will affect global trade and investment flows. And in times of geopolitical uncertainty, investors often look for stable and attractive markets. Tenerife, with its strong tourism sector and growing economy, offers a safe haven for investment.

🏝️ Why choose Tenerife?

• Tourist appeal: Tenerife attracts millions of visitors every year, creating a constant demand for accommodation.

• Attractive property prices: Compared to other European holiday destinations, Tenerife still offers competitive property prices.

• Tax benefits: The Canary Islands enjoy a more favourable tax climate than mainland Spain, which is beneficial for investors.

• Quality of life: With a mild climate, beautiful nature and a relaxed lifestyle, Tenerife is attractive not only to tourists but also to long-term residents.

📈 Conclusion

2025 offers an ideal opportunity for smart investors. Thanks to strong economic growth, new regulations that professionalize the rental market and favorable geopolitical developments, this is the time to invest in real estate on sunny Tenerife. Those who get in now will benefit from expected increases in value and stable rental income in the future. The new rules on short-term rentals in particular make it important to be well informed.

Are you considering an investment in Tenerife? Then let yourself be guided by an expert who knows the local market and legislation inside and out. Do you have questions about holiday rentals, taxation or legal aspects? We are ready to advise you personally.

From 8 to 13 May I am available for face-to-face meetings in Brussels. A perfect opportunity to discuss your plans and get specific advice.

For an appointment or question, contact us here:

KONTAKT | Tenerife Online