Tenerife Council Increases Budgets for Infrastructure and Housing Projects to Combat Inflation
The Tenerife Island Council has increased budgets for various infrastructure, housing, and coastal regeneration projects to account for rising construction costs and ensure the completion of stalled public works.
The Tenerife Island Council (Cabildo de Tenerife) has updated several collaboration agreements with local municipalities to better reflect current construction costs. Recent inflation in the building sector had caused many public projects to stall because original budgets no longer matched market prices.
The most notable change involves the regeneration of Las Caletillas beach in Candelaria. After an initial tender failed, the Cabildo has increased the budget to over 1.2 million euros. Scheduled for 2026–2027, the project will be funded primarily by the Cabildo (85.45%), with the local council covering the remainder. This work aims to complete the coastal improvements started by previous promenade projects.
The island’s "Tenerife and the Sea" program also includes new funding for other coastal areas. This includes 1.4 million euros for the third phase of the Amarilla Golf promenade in San Miguel de Abona and over 750,000 euros for improvements to the Las Eras promenade in Fasnia.
The Council is also addressing housing and economic development. Plans for 24 affordable rental homes in Arafo and 21 in La Victoria have been unblocked, with budgets of 4.6 million and 4.4 million euros, respectively. These projects are jointly funded by the Cabildo and the Canary Islands Housing Institute (Icavi), with the municipalities providing the land.
Finally, the Council has allocated 1.7 million euros to upgrade the sanitation network in the La Bastona area of Santa Úrsula. Additionally, 1.2 million euros—which may be increased by another 400,000—has been set aside for 2026 to help local businesses invest in digitalization, energy efficiency, and sustainable practices. These investments are part of a broader effort to balance urban renewal with economic growth.