Real estate profitability in the south of Gran Canaria, particularly in Maspalomas, has shown positive performance between 2021 and 2024, driven by the recovery of tourism and the growing demand for residential and holiday properties. In 2021, after the impact of the pandemic, the gross profitability of rental properties in the area was 5,2%, 2.200 euros per square metre in Maspalomas.
The upward trend continued in 2023 due to the high demand for properties for both residential and tourist use. The gross rental yield reached 6,1%. Tourist occupancy in the south of Gran Canaria stabilised at around 85% during the busiest months (October to April), consolidating the region as one of the most profitable destinations for real estate investors in Spain.
Luxury villas and apartments, particularly those with sea views or close to beaches, saw an increase in value, with prices per square metre reaching 3.200 euros in some cases.
By 2024, estimates project a stabilization of real estate profitability around 6,0%, with prices ranging from 2.500 to 2.600 euros per square meter in Maspalomas.
In 2021, after the initial impact of the COVID-19 pandemic, the revival of international tourism marked a turning point in the market. Demand for vacation and residential rentals in this region, renowned for its year-round warm climate, began to recover rapidly, leading to an increase in property prices and a rebound in profitability rates for the region.
During 2022, real estate profitability in the south of Gran Canaria continued to rise, especially in the holiday rental and tourist apartment sectors. Investors, both national and international, saw a solid opportunity in the region, benefiting from the influx of European tourists who, following the restrictions due to the pandemic, sought sunny and safe destinations. In Maspalomas, sales and rental prices increased significantly, with net yields of 5% to 7% on well-located properties. This attractiveness was reinforced by the limited supply of available land and the exclusive character of the area.
In 2023, the trend continued, albeit at a more moderate pace. The increase in construction and material costs, due to factors such as global inflation, partly slowed the supply of new homes, but demand in the secondary market remained strong. In Maspalomas, areas such as Playa del Inglés and Meloneras were key points for investors looking for long-term profitability. Long-term rentals also gained prominence, due to the growing interest of foreign residents who settle in the region for the quality of life. The profitability of these rentals ranged between 4% and 6%, depending on the location.
By 2024, projections indicate that real estate profitability in the south of Gran Canaria, and in particular in Maspalomas, will remain high. Spain’s political and economic stability, coupled with the region’s continued popularity among international tourists and residents, underpins investor appeal. Despite global challenges such as inflation and higher financing costs, the local real estate market remains resilient. Real estate profitability, especially in the holiday rental segment, is expected to continue to provide stable income to property owners, consolidating Maspalomas as one of the most useful markets on the island.
