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  • Writer's pictureFito Benitez

Average Vacation Rental Revenue in the Canary Islands

Updated: Mar 30, 2023


At Hola! Hosts, there are two things we do great. The main one is that we help current Canary Islands' holiday home owners take their vacation rental management to the next (income) level. The second great thing we do is to help individuals and investors identify properties in the market with high-return vacation rental potential. How do we do that? We have innovated the service like no other company in the island, by adding local vacation rental data to the decision-making process. This is beneficial in two ways. First, it lowers the risk of need up investing in a property that cannot deliver the expected return, and second, helps discover opportunities in areas of the islands where the competition could be less tough. Our aim is not only to help in finding a profitable and risk-free investment, but to find one tailored for the buyer's financial, location, and property's preferences.

Approach to Results

Averages Are Just an Indication

Although the income levels by municipality do bring some light into what are the most profitable municipalities to invest in, the figures below are averages. These averages are a combination of the income of all property segments within that municipality, from the cheapest to the most expensive. Also within those municipalities there are more profitable and less profitable areas, so for a realistic analysis, each case has to be handled individually.

Income Is Not Return

Averages by themselves are just part of the truth. The other half are property prices since those mark the investment levels. Even if a certain municipalities average is great, if the property prices are high, the return could just be average. On the other hand, a municipality with a medium average income could be a better option if the holiday homes prices in that are low. This has to be analysed case by case, and that's what Canary Home Invest, our sister company, does for individuals and investor's interested in investing in holiday homes in the Canary Islands.

Data Sources and Validity

We are using the data from a top industry leader in the analysis of vacation rental, The data is collected from the top three platforms in Europe. These are AirBnB, VRBO, and The data is from March 2023. Notice that even though the data fluctuates as new data comes in, these fluctuations are not big swings, therefore the data can be trusted at least for the next 12 months.

Islands Analyzed

For this analysis, we focused on the most touristic municipalities in the top five touristic islands. These are La Palma, Tenerife, Gran Canaria, Fuerteventura, and Lanzarote.

Results of the Analysis

The indicators shared are (1) average daily rate (ADR), (2) average occupancy rate (OCC), and (3) average revenue (ARE). All of these are per year, and are based on the data from the previous 12 months of rental activity of all holiday homes in each municipality, listed on rental platforms.

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 in number two, with la Orotava, a not typical tourism 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 in 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 shortlist 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 on a holiday home for vacation rentals in the Canary Islands. For those interested to look in closer, we have the tolls 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.


Why would you hire us to manage your vacation rental property in the Canary Islands? Here are eight reasons why your holiday home is best managed by Hola! Hosts. Read the post.

Want to understand the Canary Islands' vacation rental industry a bit better? Here is our most current market analysis.

Ready to get in touch? We are glad to evaluate your property or help you find investment opportunities in the market. We make use of local industry data to identify the properties being sold that have the highest vacation rental potential. Contact us now!

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