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  • Writer's pictureFito Benitez

Average Rental Revenue of Holiday Homes in the Canary Islands by Municipality (2023)

Average rental revenue of holiday homes in Canary Islands by municipality 2023


At Hola! Hosts, we excel at two key things. Our primary focus is assisting existing owners of holiday homes in the Canary Islands to elevate their vacation rental management to a higher level of income. Additionally, we specialize in aiding individuals and investors in identifying properties in the market that have significant potential for high returns in vacation rentals. How do we achieve this? We have revolutionized our service, unlike any other company on the island, by incorporating local vacation rental data into our decision-making process. This approach offers two advantages. Firstly, it reduces the risk of investing in a property that fails to meet expected returns. Secondly, it helps uncover opportunities in less competitive areas of the islands. Our objective is not only to help find a profitable and low-risk investment but also to find one that aligns with the buyer's financial, location, and property preferences.

Approach to Results

Averages Provide Limited Insights

While revenue levels per municipality shed some light on the most profitable municipalities for investment, the figures presented below are averages. These averages encompass the income generated across all property segments within each municipality, ranging from the most affordable to the most expensive. Furthermore, within these municipalities, there are areas that are more or less profitable. Therefore, for a realistic analysis, each case must be evaluated individually.

Income Doesn't Guarantee Returns

Averages alone do not provide the complete picture. The other crucial aspect is property prices, as they dictate the investment levels. Even if a municipality has a high average income, the return on investment may be merely average if property prices are also high. Conversely, a municipality with a moderate average income could be a more favorable choice if holiday home prices are low. Each case must be examined on its own merits, and that's precisely what our sister company, Canary Home Invest, does for individuals and investors interested in investing in holiday homes in the Canary Islands.

Data Sources and Reliability

We rely on data from, a leading industry expert in vacation rental analysis. This data is sourced from the top three platforms in Europe, namely Airbnb, VRBO, and The data used is from April 2023. Although the data may fluctuate as new information becomes available, these fluctuations are not significant. As a result, the data can be considered reliable for at least the next 12 months.

Terminology rental revenue of holiday homes in the Canary Islands

Below, in the results section, we are using acronyms for three types of measurements. These are: rental revenue of holiday homes in Canary Islands

  • ADR: average daily rate, or the average price per night

  • OCC: average occupation rate expressed as a yearly % of 365 days

  • ARE: average yearly revenue calculated by turning OCC % into days, and multiplying it against the average daily rate.

Results by Island

La Palma

  • Santa Cruz: ADR €71, OCC 79%, ARE €1105

  • Fuencaliente: ADR €64, OCC 70%, ARE €868

  • El Paso: ADR €79, OCC 74%, ARE €1126

  • Tijarafe: ADR €93, OCC 78%, ARE €1314

  • Puntagorda: ADR €90, OCC 82%, ARE €1474


  • Adeje: ADR €107, OCC 79%, ARE €1447

  • Arona: ADR €91, OCC 79%, ARE €1235

  • Granadilla de Abona: ADR €83, OCC 77%, ARE €1056

  • San Miguel de Abona: ADR €98, OCC 74%, ARE €1277

  • Puerto de La Cruz: ADR €67, OCC 77%, ARE €899

  • La Orotava: ADR €97, OCC 77%, ARE €1395

  • Santa Cruz: ADR €78, OCC 81%, ARE €1223

Gran Canaria

  • San Bartolome de Tirajana: ADR €105, OCC 71%, ARE €1391

  • Mogan: ADR €103, OCC 68%, ARE €1247

  • Las Palmas: ADR €82, OCC 79%, ARE €1119

  • Agaete: ADR €95, OCC 74%, ARE €1394

  • Valleseco: ADR €110, OCC 53%, ARE €1507

  • Santa Brigida: ADR €118, OCC 67%, ARE €1558


  • La Oliva: ADR €87, OCC 79%, ARE €1284

  • Antigua: ADR €82, OCC 75%, ARE €1138

  • Tuineje: ADR €71, OCC 70%, ARE €1033

  • Pajara: ADR €85, OCC 76%, ARE €1188


  • Yaiza: ADR €149, OCC 82%, ARE €2125

  • Tias: ADR €91, OCC 86%, ARE €1549

  • Teguise: ADR €85, OCC 83%, ARE €1394

  • Haria: ADR €84, OCC 77%, ARE €1332

Top Municipalities per Island

  • La Palma: Puntagorda: ADR €90, OCC 82%, ARE €1474

  • Tenerife: Adeje: ADR €107, OCC 79%, ARE €1447

  • Gran Canaria: Santa Brigida: ADR €118, OCC 67%, ARE €1558

  • Fuertenventura: La Oliva: ADR €87, OCC 79%, ARE €1284

  • Lanzarote: Yaiza: ADR €149, OCC 82%, ARE €2125

Top 5 Municipalities

  1. Lanzarote - Yaiza: ADR €149, OCC 82%, ARE €2125

  2. Gran Canaria - Santa Brigida: ADR €118, OCC 67%, ARE €1558

  3. Lanzarote - Tias: ADR €91, OCC 86%, ARE €1549

  4. La Palma: Puntagorda: ADR €90, OCC 82%, ARE €1474

  5. Tenerife: Adeje: ADR €107, OCC 79%, ARE €1447

Analysis of Results

Results by Island

La Palma

The results are mostly what was expected but Puntagorda, coming in 1st, was a surprise, especially having the highest occupancy rate in the whole island.


In Tenerife, it was no surprise to see the top touristic municipalities. The surprise came in number two, with la Orotava, a not typical tourist destination. This municipality though has some of the best views, food, and nearby wild beaches in Tenerife.

Gran Canaria

The results follow the trend in Tenerife but go even further, with three non-typical tourism destinations (Agaete, Valleseco, Santa Brigida), two of them mostly rural, generating higher AREs than the touristy counterparts.


Here there are no surprises. The ranking follows the order of most to less touristy municipalities within Fuerteventura.


Lanzarote is by far the most profitable island for investing in a holiday home for vacation rentals and the municipality of Yaiza beats by far any other in the Canary Islands. Here there were no surprises in the ranking.

Top Municipalities per Island

When it comes to which municipality tops each island, again, there were no surprises, apart from Gran Canaria, where the real municipality of Santa Brigida beat all tourism destinations on the island. Definitely, an area to keep the attention on and promote to new investors.

Top 5 Municipalities

When it comes to the top five independently of the island, it was no surprise that Lanzarote would have two in the first five. The surprises came in 2nd place, with Santa Brigida being the most profitable area for vacation rentals and short lets in Gran Canaria, and with the exceptionally high OCC of Puntagorda in La Palma, making it to 4th place.


Despite the results just being averages of the different towns within a municipality, they still provide useful insights for the foreign investor coming to invest in a holiday home for vacation rentals in the Canary Islands. For those interested to look in closer, we have the tools to do so and we will personalize the results based on your preferences regarding investment level, location, and property type. That type of analysis, supported by in-depth return scenarios, will be the perfect combo to support investors in making the best investment decision based on the results they want to obtain.

-------------------------------------------- Are you considering investing in a holiday home in the Canary Islands? Contact Canary Home Invest and we will help you make a proper evaluation based on your property preferences, and return on investment expectations.

Wondering how's the purchase process, and the costs and taxes related to buying a property in Spain? Check out our guide for buying real estate in the Canary Islands. Why Canary Islands, Spain, and not investing in foreign property elsewhere? Here are nine sound business reasons why it is not only a safe choice but also a rewarding one. #vacationrental #holidayhome #shortlet #rentalrevenue #canaryislands #incomeby municipality #realestateyield #foreinghome #buytolet #foreingrealestate #foreignproperty #grancanaria #tenerife #fuerteventura #lanzarote #sijoitus #asunnot #kanariansaarilla


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