Top 5 Cheapest Areas in Tenerife South

Tenerife South is famous for its sunshine and resorts, but not every town here comes with a high price tag. In fact, there are still several areas where property remains relatively affordable, especially if you focus on resale homes rather than new luxury developments. Below we highlight the five cheapest areas in the south of Tenerife – starting from the very cheapest – and explore why they’re inexpensive, what types of housing they offer, their population size, and whether they show any potential for growth.

1. Arico – Remote and Affordable Municipality

Arico is arguably the cheapest area in South Tenerife, with property prices far below the island’s average. This municipality lies on the south-eastern coast, about 40–50 km from the main tourist hubs. Why is Arico so cheap? It’s a quiet, rural area with small fishing villages and agricultural communities, largely untouched by mass tourism. Lacking major resorts or beaches (apart from a few small coves like Porís de Abona and Abades), demand from international buyers has been low – keeping prices down. In fact, home listings in Arico start at under €50,000 for simple village apartments or fixer-upper houses. The average price per square meter was around €1,600–€1,700 in 2024 (one of the lowest in Tenerife), and even after recent increases it remains very affordable.

Arico’s housing consists mainly of traditional Canarian houses, rustic fincas, and a few apartment blocks in the larger villages. With roughly 8,000–9,000 inhabitants spread over several small towns (like Villa de Arico, Arico Viejo, Tajao, and the coastal Abades), the community is small and tight-knit.

Potential: Arico’s remote location means it may never see the rapid growth of places closer to the tourist centers. However, there is some potential in its coastal villages – for example, Abades has a pretty beach and rows of modest houses that attract bargain hunters and holiday-home buyers. Overall, Arico offers tranquility and local charm rather than big development prospects. It’s ideal if you seek a cheap fixer-upper or a quiet retirement spot and don’t mind driving a bit further for amenities.

https://tenerifeysuspueblosblog.wordpress.com/2017/04/14/arico/

2. San Isidro (Granadilla de Abona) – Budget Flats in a Booming Town

San Isidro is the main residential town of Granadilla de Abona, located just inland from the Tenerife South airport. It has become one of the cheapest places to buy in the south due to its working-class character and abundance of housing. Why so cheap? Unlike the coastal tourist areas, San Isidro is a local community with no beach (El Médano’s beaches are ~5 km away) and plenty of supply – numerous apartment complexes were built here to accommodate the area’s growing workforce. Many of these flats are basic and aimed at residents, keeping prices relatively low. According to recent data, San Isidro’s average sale price is around €2,100 per m², with a typical apartment costing about €160,000. This is roughly half the price per m² of nearby beach towns like El Médano (which average ~€3,700/m²). It’s not uncommon to find two-bedroom apartments in San Isidro for €100,000–€130,000, and some smaller or older units even under €100k, a rarity in Tenerife’s south.

San Isidro has a population of approximately 8,000–10,000 people, comprising many young families, workers from across Tenerife (and abroad) drawn by jobs in the airport and tourism sectors. The housing is dominated by modern low-rise apartment blocks, with some townhouses on the outskirts.

Potential: The town has been rapidly growing and improving its infrastructure (schools, supermarkets, etc.) as Granadilla’s population surges.. While it’s not a picturesque resort, its strategic location near the highway and airport means San Isidro could continue to thrive as an affordable base for locals and expats who then commute to tourist zones. Property values here might slowly rise as demand for budget housing increases, but it will likely remain one of the south’s most affordable areas for the foreseeable future.

https://www.granadilladeabona.org/el-ayuntamiento-aprueba-un-plan-para-impulsar-el-desarrollo-urbano-sostenible-e-inclusivo-de-san-isidro-por-un-presupuesto-de-149-millones-de-euros/

3. El Fraile (Arona) – Budget-Friendly Residential Zone with Coastal Access

El Fraile, located in the municipality of Arona, is one of the most affordable urbanised areas near the coast in Tenerife South. Why is El Fraile cheaper than nearby zones? It’s a dense, working-class residential area built mostly for locals and long-term residents. It lacks the direct tourist appeal and visual charm of neighbouring Las Galletas or Costa del Silencio, and has little short-term rental activity, which helps keep prices grounded. Nevertheless, it is located just inland from the sea and within walking distance to Las Galletas’ promenade and marina.

Housing in El Fraile is made up almost entirely of older apartment blocks, typically three to five storeys high, many without lifts or modern amenities. Properties are often compact and basic in condition, with some in need of refurbishment. That said, prices are among the lowest in the region: apartments can still be found for under €100,000, and even the average price per square metre remains well below the Arona average, hovering around €2,100–€2,300/m². With a population of around 6,000–7,000 inhabitants, the area is multicultural and busy, with small local businesses, schools, and simple infrastructure.

Potential: El Fraile may not have strong growth prospects as a luxury destination, but it is appealing to investors seeking low-cost entry and solid long-term rental demand from local tenants. For buyers on a tight budget looking for a property close to the sea, El Fraile remains a viable and strategic option.

https://www.eldiario.es/canariasahora/tenerifeahora/sur/fraile-inteligente-descontamina-absorbiendo-transformando_1_1402455.html

4. San Miguel de Abona – Quiet Town and Golf Coast

The municipality of San Miguel de Abona spans from an inland historic town down to a coastal strip, and it offers affordable resale properties in several of its zones. San Miguel’s inland village (the municipal capital) lies on the hillside above 600m elevation, maintaining a traditional feel, while the coast is home to Golf del Sur and Amarilla Golf – residential-tourist areas that are quieter and cheaper than other resort towns. Why are prices lower? In the inland town and its surroundings (like Aldea Blanca, Las Zocas, Guargacho), the market is local and rural, with limited tourist influence. Even along the coast, Golf del Sur lacks a real beach and is known for its golf courses and marina rather than nightlife, which means property there appeals mostly to retirees and seasonal residents, keeping prices relatively moderate. As a result, San Miguel’s overall property values (around €2,800–€3,000 per m² on average) tend to be lower than Arona or Adeje. For example, one can find 1–2 bedroom apartments in the Golf del Sur area for ~€120,000–€180,000, and typical flats in San Miguel’s town go for well under €150,000.

With a population of about 22,000 spread across its districts, San Miguel de Abona has seen strong growth but still feels less congested than bigger municipalities. Housing options include Canarian village houses and newer apartments in the town, and a mix of apartments, townhouses, and villas in the coastal urbanizations.
Potential: San Miguel de Abona stands to benefit from continued southward expansion. Its population boom (tripling since 2000) reflects the employment opportunities nearby (airport, resorts) and the availability of affordable homes. There is ongoing development in spots like Llano del Camello (a residential area near the TF-1 highway and Las Chafiras commercial zone), suggesting the area is up-and-coming for local families. On the coast, while no major luxury resorts are planned, the existing golf resorts maintain steady demand. Don’t expect rapid price spikes, but a modest upward trend is likely as more buyers seek reasonably priced homes within a 10-minute drive of beaches and tourist centers.

https://www.sanmigueldeabona.es/2021/01/18/san-miguel-de-abona-el-primer-municipio-de-la-isla-en-incremento-de-poblacion/

5. Valle San Lorenzo (Arona) – Inland Village with Local Character

Rounding out the top five is Valle San Lorenzo, one of the largest inland communities in the municipality of Arona. Situated in the hillside about 6 km above Los Cristianos, this town and its neighboring villages (like Cabo Blanco, Buzanada, La Camella) form a cluster of local residential areas known for cheaper housing. Why is Valle San Lorenzo inexpensive? Being outside the coastal strip, it doesn’t attract short-term holidaymakers. Instead, it’s a working town with schools, shops and a weekly farmers’ market serving the local population. Many properties here were built for residents rather than investors – think simple apartments and family houses – and thus price points remain accessible. It’s reported that Arona’s non-tourist districts have significantly lower prices than its resort areas; for example, the average prices in some Arona interior zones hover in the mid-€2,000s per m² (versus over €4,000/m² by the coast). In practical terms, you might find a three-bedroom apartment in Valle San Lorenzo for around €130,000–€170,000, whereas the same in Los Cristianos could cost double. Homes needing a bit of updating here can dip under €100k, offering great value for handy buyers.

Valle San Lorenzo itself has roughly 6,000 inhabitants and, despite being up in the hills, it’s fully part of metropolitan Arona life – you’ll see busy guagua (bus) routes, supermarkets, and local fiestas in the plaza. The housing stock includes low-rise apartment blocks, terraced houses, and some detached homes with plots on the outskirts.
Potential: These inland Arona communities could see gradual appreciation as the coastal zone fills up and people look for affordable alternatives within commuting distance. The climate is a bit cooler up here and you’re still only a 10–15 minute drive from the beaches, which makes it attractive for year-round living. Already, a number of foreign residents have chosen towns like Valle San Lorenzo and Cabo Blanco for more space at lower cost. While no major developments are planned (Arona’s focus remains on its tourist areas), infrastructure improvements like better roads or new amenities could steadily boost the appeal of this area. For buyers, Valle San Lorenzo represents a chance to live among locals and enjoy a more authentic Tenerife lifestyle – all while saving money on your home purchase.

https://www.fotopaises.com/foto/valle-de-san-lorenzo-espana-101840

References:

1. Canarian Weekly – Affordable Coastal Property in Tenerife (Apr 2024): Average prices per square meter in various Tenerife municipalities, with Arico at €1,669/m² and Granadilla de Abona at €1,518/m².

2. Fotocasa (June 2025) – Granadilla de Abona Price Index: San Isidro district average €2,108/m² (approx. €163,500 per property), compared to El Médano €3,747/m².

3. Idealista – Cheap Properties in Arico: Over 100 listings starting from €41,500, indicating the low entry price in Arico. The same source shows an average asking price around €2,500/m² for Arico properties.

4. Idealista (June 2025) – Costa del Silencio–Las Galletas Market Data: Average price ~€3,166/m², with a +16.4% yearly increase as demand grows in this budget coastal area.

5. Engel & Völkers – Market Report 2025, Costa del Silencio: Confirms low prices for houses (€2,245/m²) and apartments (€3,236/m²) in Costa del Silencio, and charts steady price growth from 2022–2025.

6. Canarian Weekly – Population Growth in South Tenerife: Notes the 2000–2023 population boom in southern municipalities – e.g. San Miguel de Abona grew to 22,606 residents – reflecting housing demand in affordable areas.