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Investing in properties to rent out has become one of the most attractive strategies for those looking to generate passive income and grow their wealth. But is it really profitable to buy to let? The answer depends on several key factors, such as the location of the property, rental demand in the area, and the costs associated with purchasing and maintaining the property.

In this article, we explain why investing in buy-to-let properties can be one of the best financial decisions, especially if you choose strategic locations like Fuerteventura and other paradisiacal Canary Islands. Here, you’ll discover the keys to maximizing profitability and making the best decision.

Is it profitable to buy to let in Fuerteventura?

Profitability varies a lot by area and property type — investing in Fuerteventura isn’t the same as investing inland on the mainland. According to BestYieldFinder (2026), the average rental yield in Fuerteventura is 7.38%, with prices starting at €179,000 and average rent of €1,300/month — reaching up to 8.62% in the highest-yielding areas, particularly for one-bedroom apartments.

Why is it profitable to invest in Fuerteventura specifically?

  • Rental income often exceeds monthly costs (mortgage, maintenance and taxes) in high-demand tourist areas.
  • Property values tend to rise: the average price on the Canary coast has increased 59.55% over five years (pisos.com, 2026).
  • Short-term rentals generate higher income than long-term lets, though with more hands-on management.
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Investing in Buy-to-Let Properties in the Canary Islands: The Perfect Opportunity

If you’re thinking of investing in a newly built house with the goal of renting it out, few places offer as many advantages as the Canary Islands, particularly Fuerteventura. This paradise island, with its enviable climate, dreamlike beaches, and tourist appeal, has become one of the top destinations for buying newly built homes for investment purposes.

Why invest in Fuerteventura for buy-to-let purposes?

  1. Year-round rental demand
    Unlike other regions dependent on seasonality, Fuerteventura has rental demand throughout the year. Its mild 12-month-a-year climate attracts tourists, digital nomads, and expatriates looking for extended stays. This allows you to keep the property rented continuously, translating to higher annual income.
  2. Solid returns from holiday rentals
    Holiday rental prices in Fuerteventura vary considerably by platform, area and season — between €89 and €178 a night according to booking aggregators, with no single reliable official average. As a benchmark, a holiday rental is generally considered profitable above a 60% occupancy rate.
  3. Booming area with high demand for new builds
    New developments in Fuerteventura have become one of the best opportunities for those looking for a ready-to-rent property. Newly built properties, like those offered by Casilla de Costa, are especially attractive to tenants seeking comfort, energy efficiency, and modern design.
  4. Property value appreciation
    Buying a newly built house in a booming area like Fuerteventura allows you to earn rental income while also benefiting from the medium- and long-term increase in property value. Growing areas tend to see their property values increase over time, meaning your investment appreciates.
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buy-to-let - home appreciation

Tips for Investing in Buy-to-Let Properties in the Canary Islands

If you have decided that you want to take advantage of the opportunities of investing in a rental property in the Canary Islands, these tips will help you to maximise the return on your investment:

  1. Choose newly built properties:
    New builds are easier to rent due to modern designs, energy efficiency, and lower maintenance costs. At Casilla de Costa, we offer newly built properties in Fuerteventura that are ideal for those looking for a hassle-free rental investment
  2. Prioritize tourist locations: Tourists and digital nomads prefer well-connected areas with access to the beach and local services. Homes near the sea and commercial areas tend to have higher demand, rent faster, and generate higher prices.
  3. Calculate profitability before purchasing: Before buying, make sure to calculate the gross and net returns of the investment. Include all expenses, such as mortgage, taxes, and maintenance, to determine your annual return.
  4. Effectively manage holiday rentals: If you decide to rent out the house to tourists, ensure you have a solid management strategy. Platforms like Airbnb and Booking can help you attract customers, but if you’d rather outsource management, you can hire a company to handle everything from cleaning to guest services.

new build homes

Conclusion: Is it profitable to buy to let?

Yes, especially if you choose to invest in a newly built house in the Canary Islands, like those in Fuerteventura. The combination of holiday rental income, property appreciation, and constant demand ensures a safe and profitable investment in the medium and long term. If you also opt for new builds, you minimize maintenance costs and offer a more attractive product to tenants.

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Do you want to buy a newly built property in Fuerteventura?

At Casilla de Costa, we help you find the ideal property for your investment goals. Our newly built properties stand out for their modern design, prime location, and high demand for tourist or residential rentals.

Contact us through our form and find the perfect property for your investment. Don’t miss the opportunity to grow your wealth on a paradise island!