The peculiarities of the rental market in the Canary Islands are of special interest to those who want to invest in real estate here with the subsequent rental of housing. The well-selected property in Tenerife can become a profitable and cost-efficient project for many years to come that will not only pay back the costs, but will also bring a stable income. Information about the regions of Tenerife, types of housing and factors that affect demand can help assess the prospects and select the right kind of real estate. It can also help to decide whether a long-term or short-term lease is the most appropriate in each individual case.
For example, a common fact about the Canary Islands, which all real estate agencies in Tenerife mention in order to attract customers, is the lack of seasonality that results in the year-round demand for rental housing. Although by and large it is true, this fact does not apply to all areas of Tenerife, such as tourist and city zones, as well as mixed variants.
The regions of Tenerife that are most attractive for recreation and permanent residence
Tenerife can be conditionally divided into three zones: north, south and the metropolitan region.
· Santa Cruz de Tenerife - the capital and the largest municipality – is the commercial and transport hub of Tenerife. There are the largest hospitals, educational and cultural institutions, as well as the highest concentration of business activity. It offers all types of real estate from studios in high-rise buildings to villas and mansions. This area is mainly chosen for permanent residence, work and study. Property prices are relatively low here.
· The north of Tenerife has two zones: the respectable tourist Puerto de la Cruz and the picturesque foothills of La Orotava, Los Realejos, Santa Ursula, and Tacoronte - thriving agricultural regions with prevailing local population. Seasonality matters for this zone, since the climate here is cooler and more humid than in the south.
· South Tenerife is a tourist mecca. It has a warm and dry climate with slight annual temperature fluctuations. This area of Tenerife is ranked as one of the most popular places for property rental in Spain. Here, high real estate prices prevail, but these investments are usually justified by the profitability of housing. Stable demand also ensures the relatively high (in comparison with other areas of Tenerife) price tag for rent. Quality modern buildings, developed infrastructure and good weather make this area ideal for investment.
What types of property are in demand for rental housing in Tenerife Apartments are the most common and sought-after type of housing for rent in Tenerife. The apartments are located in well-maintained residential compounds with a private territory, swimming pool and underground parking. They benefit from the modern planning and are in compliance with all modern standards of comfortable housing. Although the range of options is quite wide (from studios to penthouses), the most popular ones are two-bedroom apartments. This type of rental housing in Tenerife enjoys a constant demand for both long and short terms.
High-end real estate in Tenerife includes detached houses, villas and townhouses located in residential compounds. High-end real estate is usually located somewhat away from the centre of tourist life in quiet, respectable areas that often have golf courses, elite schools and the best beaches in the neighbourhood. The rent of elite real estate is in demand either for a long time or seasonally - during the summer and New Year holidays.
Types of lease: for a long or short term
The choice between letting a house for a short or long term is conditioned by individual requests and the owner's capabilities. If the owner of real estate does not live on the island, it is more sensible to consider a long-term lease option. That said, today large real estate agencies offer a remote property management service that ensures worry-free renting of dwellings. Thus, the type of lease in each specific case should be chosen taking into account a number of factors, and the informed and individual approach coupled the knowledge of the market can help make the right decision.