Canary Islands Launch €30 Million Social Housing Project to Tackle Tenerife Shortage

The Canary Islands Housing Institute (Icavi) has launched a plan to build 110 social housing units in the south of Tenerife, a region currently struggling with a severe housing shortage.

This project, with a budget of over 25.4 million euros, is split into two main developments. In Adeje, 51 homes and parking spaces will be built for 9.4 million euros. Meanwhile, 16 million euros will go toward constructing 59 homes in the Marazul area of Arona. Including an additional project in Guía de Isora, the total plan will deliver 134 new homes with an investment of nearly 30 million euros, excluding taxes.

This initiative aims to address housing imbalances caused by a tourism-heavy economy. The rise of vacation rentals and steady population growth have made it increasingly difficult and expensive for local residents to find housing near their workplaces. These projects are funded by European Next Generation grants, which require the new buildings to meet strict energy efficiency standards.

Currently, the regional government is managing a total of 1,137 housing units across Tenerife. Of these, 620 are under construction, 496 are in the design phase, and 21 are finished. By launching these new projects in Arona and Adeje, authorities hope to ensure that local workers are not priced out of the island’s main economic hubs. The success of this policy will now depend on how quickly these contracts are awarded and whether the construction sector can handle the demand despite rising costs.