The south of Tenerife, classed as being between Candelaria on the east coast and Santiago del Teide on the west, is experiencing a housing crisis as never seen before, as residential properties available for rent dwindle leaving locals grappling with exorbitant prices. Leading property websites in Spain, Fotocasa and Idealista, reported just 134 and 213 rental listings, respectively, yesterday, highlighting a scarcity of properties available in the area.
However, the issue extends beyond scarcity, with the real concern lying in the elevated rental costs. Major banks advise that rent payments should not exceed 30% of net monthly income, but to meet this guideline, an average resident's salary would need to be almost €3,000 per month.
The southern region seems to be turning into a haven for holiday homes rather than a feasible place for residents to live. A search for rentals below €700 per month yields limited but available options on Idealista and Fotocasa, with most listings precisely at €700. This implies that a minimum net monthly income of around €2,100 is required to afford such an apartment.
Properties such as an 85m2 apartment with two bedrooms and amenities like a lift and garage in Tamaimo, or a 44m2 fifth-floor apartment with lift access in Puerto Santiago, are now priced at the €700 mark. The affordability extends to La Caleta de Güímar and Las Galletas, while options in Granadilla de Abona and Arico are available for a slightly higher rent of €750.
A significant contributing factor to this housing challenge is the notable increase in rental prices between 2016 and December 2023, as indicated in a new study from the real estate portal Indominio. The cost per square metre has more than doubled in many areas, with Granadilla de Abona, Arona, and Adeje experiencing staggering growth rates. Vilaflor, on the other hand, is an exception with a stable average of €3.06 per square metre.
The popular tourist destinations of Playa de las Americas, Los Cristianos, and Costa Adeje top the list as the most expensive places to live, with an average monthly rent of €1,552, €1,377, and €1,372 for a 70m2 residential property respectively.
Surprisingly, San Isidro, Valle San Lorenzo-Cabo Blanco-Buzanada, Las Galletas-Costa del Silencio, El Fraile, and Guargacho de San Miguel de Abona also command relatively high rents, ranging from €743 to €837 per month for similar properties.
Over the past seven years, rental prices in the southern region have more than doubled, with a particularly notable surge in the last year. Granadilla de Abona witnessed a 33.75% increase, Arona surpassed 31%, and Adeje experienced a growth of 25.34%. Consequently, the average monthly rents stand at €893, €1,234, and €1,281, respectively, signalling the need for salaries above €2,700 per month to keep pace with soaring living costs.
