Holiday let capacity falls in the south of Tenerife after years of growth
The holiday let market in the south of Tenerife has changed direction after several years of continuous growth. Between October 2024 and October 2025, the region saw a net loss of 3,067 beds, a drop of 5.5% in available tourist accommodation.
According to new figures released by the Canary Islands Statistics Institute (Istac). Despite the decline, the overall volume remains high, with 52,374 beds still in operation.
The downturn is concentrated mainly in the municipalities with the strongest tourism sectors: Adeje, Arona and Granadilla. Although they continue to host the bulk of the South’s holiday rental properties, all three have experienced reductions over the past year.
- Adeje has lost 136 properties and 1,065 beds.
- Arona has cut 111 properties and 1,022 beds.
- Granadilla shows the steepest fall in relative terms, with 108 fewer properties and a reduction of 490 beds.
Despite experiencing the sharpest decline in absolute terms, Arona still holds 32.8% of all holiday rental capacity in the south, with 17,184 beds.
Meanwhile, growth has shifted away from the major tourist hotspots and towards other areas of the island.
Arafo is the standout municipality in terms of relative growth, increasing from 39 to 47 properties, a 20.5% rise, and adding 44 beds, up 23.6% year-on-year, although its overall volume remains small.
Candelaria also recorded an expansion, gaining 72 beds (+4.5%) and increasing its stock from 394 to 401 properties (+1.7%). Fasnia kept the same number of properties (73) but increased its bed total to 295, a rise of 1.4%.
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