The Costa del Sol is a popular region in southern Spain, known for its stunning coastline, warm weather, and diverse cultural offerings. The region is also a hot spot for real estate investment, with a range of desirable locations that offer solid rental yields and the potential for long-term capital growth.
According to recent data, the average rental price for a property in Costa del Sol is around €1,100 per month, though this varies depending on the location and type of property. In terms of sales prices, the average price per square meter in the region is around €2,300, though this also varies by location.
Despite the challenges posed by the COVID-19 pandemic, real estate prices in Costa del Sol have remained relatively stable over the past few years. According to data from Idealista, average rental prices in the region have increased significantly since 2019, while sales prices have also continued to rise.
So, which locations in Costa del Sol are the best for real estate investment? Here are a few of the most desirable areas to consider:
Benalmadena: Located between Torremolinos and Fuengirola, Benalmadena is a bustling town with a range of properties to suit different budgets. The area is known for its beautiful beaches, marina, and lively nightlife, as well as its wide selection of restaurants and shops. Average sales prices in Benalmadena are around €2,200 per square meter, while rental yields can be as high as 6% p.a.
Benalmadena is a popular destination for tourists, which means that rental yields can vary depending on the season. During the high season, which typically runs from May to September, the coastal area is bustling with all nationalities. During the low season, which typically runs from October to April, the area is popular with clients from colder climates who like to spend the winters in the sun. Golf also plays a large part in Benalmadena's popularity.
The rental market in Benalmadena is diverse, with a range of options available to suit different budgets and preferences. One-bedroom apartments can be rented for around €500 to €800 per month, while larger apartments or villas with two or more bedrooms can be rented for €1,000 or more per month, depending on the location and the amenities included.
In addition to its popularity with tourists, Benalmadena is also home to a large expat community. This means that there is a year-round demand for rental properties, particularly those that are located close to amenities such as shops, restaurants, and public transport. Real estate investors who focus on properties in desirable locations and with strong rental potential can expect to see solid returns on their investment in Benalmadena.
According to recent data, the average rental price for a property in Costa del Sol is around €1,100 per month, though this varies depending on the location and type of property. In terms of sales prices, the average price per square meter in the region is around €2,300, though this also varies by location.
Despite the challenges posed by the COVID-19 pandemic, real estate prices in Costa del Sol have remained relatively stable over the past few years. According to data from Idealista, average rental prices in the region have increased significantly since 2019, while sales prices have also continued to rise.
So, which locations in Costa del Sol are the best for real estate investment? Here are a few of the most desirable areas to consider:
Benalmadena: Located between Torremolinos and Fuengirola, Benalmadena is a bustling town with a range of properties to suit different budgets. The area is known for its beautiful beaches, marina, and lively nightlife, as well as its wide selection of restaurants and shops. Average sales prices in Benalmadena are around €2,200 per square meter, while rental yields can be as high as 6% p.a.
Benalmadena is a popular destination for tourists, which means that rental yields can vary depending on the season. During the high season, which typically runs from May to September, the coastal area is bustling with all nationalities. During the low season, which typically runs from October to April, the area is popular with clients from colder climates who like to spend the winters in the sun. Golf also plays a large part in Benalmadena's popularity.
The rental market in Benalmadena is diverse, with a range of options available to suit different budgets and preferences. One-bedroom apartments can be rented for around €500 to €800 per month, while larger apartments or villas with two or more bedrooms can be rented for €1,000 or more per month, depending on the location and the amenities included.
In addition to its popularity with tourists, Benalmadena is also home to a large expat community. This means that there is a year-round demand for rental properties, particularly those that are located close to amenities such as shops, restaurants, and public transport. Real estate investors who focus on properties in desirable locations and with strong rental potential can expect to see solid returns on their investment in Benalmadena.
Mijas Costa: Situated between Marbella and Fuengirola, Mijas Costa is a diverse area with a range of properties to suit different budgets. The area is popular with both tourists and full-time residents offering a range of attractions and amenities. Average sales prices in Mijas Costa are around €2,200 per square meter, while rental yields can be as high as 7% p.a.
Miraflores: Located between Marbella and Fuengirola, Miraflores is a popular residential area with a range of apartments, townhouses, and villas. The area is known for its beautiful landscaping and proximity to the beach, as well as its wide selection of restaurants, bars, and shops. Sporting activities also feature largely in the popularity of Miraflores. You have various tennis and paddle clubs, Miraflores golf club and there is a popular lawn bowling club on site. Average sales prices in Miraflores are around €2,000 per square meter, while rental yields can be as high as 5%.
Rental prices in Miraflores can vary depending on the property type and location, but on average, a two-bedroom apartment can be rented for around €800-€1,200 per month. During the high season, which is typically from June to September, rental prices can increase by up to 50%.
Rental prices in Miraflores can vary depending on the property type and location, but on average, a two-bedroom apartment can be rented for around €800-€1,200 per month. During the high season, which is typically from June to September, rental prices can increase by up to 50%.
Calahonda: Located between Marbella and Fuengirola, Calahonda is a popular destination for both tourists and expats. The area offers a range of affordable properties, including apartments, townhouses, and villas, as well as a variety of amenities such as shops, restaurants, and golf courses. Average sales prices in Calahonda are around €1,800 per square meter, while rental yields can be as high as 6%.
Rental prices in Calahonda can be very affordable, with a two-bedroom apartment renting for around €700-1.000 per month. During the high season, rental prices can increase by up to 30%. It's worth noting that some properties in Calahonda are rented out on a short-term basis, particularly during the summer months.
La Cala de Mijas: Situated just east of Marbella, La Cala de Mijas is a charming town with a range of properties to suit different budgets. The area is popular with both tourists and full-time residents, again offering a range of attractions and amenities including beautiful, sandy beaches, golf courses, charming old town center with a varied selection of restaurants and bars. Average sales prices in La Cala de Mijas are around €2,500 per square meter, while rental yields can be as high as 7%.
The rental market in La Cala de Mijas is hot, with demand outstripping supply. One-bedroom apartments can be rented for around €700 to €900 per month, while larger apartments or villas with two or more bedrooms can be rented for €1.500 or more per month, depending on the location and the amenities included.
La Cala de Mijas is a popular destination for tourists, particularly golfers, and the area has a strong rental potential as a result. Real estate investors who focus on properties in desirable locations and with strong rental potential can expect to see solid returns on their investment in La Cala de Mijas. Additionally, the area's popularity with full-time residents means that there is a year-round demand for rental properties, which can help to ensure a steady stream of rental income for investors.
Elviria: Situated just east of Marbella town, Elviria is a beachside neighborhood with a range of high-end properties. The area is popular with both tourists and full-time residents and offers a range of amenities including golf courses, shopping centers, and international schools. Average sales prices in Elviria are around €3,000 per square meter, while rental yields can be as high as 7%.
The rental market in Elviria is mainly composed of high-end properties, such as luxury apartments and villas. One-bedroom apartments can be rented for around €900 to €1,500 per month, while larger apartments or villas with two or more bedrooms can be rented for €2,000 or more per month, depending on the location and the amenities included.
Elviria's popularity as a beachside neighborhood and its range of high-end amenities make it a popular choice for both tourists and full-time residents. Real estate investors who focus on properties in desirable locations and with strong rental potential can expect to see solid returns on their investment in Elviria. Additionally, the area's popularity with both tourists and full-time residents means that there is a steady demand for rental properties throughout the year.
Marbella: Known for its upscale amenities and luxurious properties, Marbella is a popular destination for high-end real estate investors. Average sales prices in the area are around €3,500 per square meter, and rental yields can be as high as 7% for the right property.
Rental prices in Marbella are generally higher than in the other areas mentioned, reflecting the high-end nature of the properties and amenities. A two-bedroom apartment in a desirable location can be rented long-term for around €1,500-€2,500 per month. During the high season, rental prices can increase significantly, with some properties fetching up to €10,000 per week.
Estepona: Located just west of Marbella, Estepona is a hot spot for real estate investors. The area has experienced significant development in recent years, with a range of new residential and commercial properties popping up. Average sales prices in Estepona are around €2,500 per square meter, while rental yields can be as high as 7%.
In terms of rental prices, Estepona sees a similar pattern to other areas on the Costa del Sol, with prices increasing during the high season and remaining stable during the low season. During the summer months, rental prices for apartments can range from €1,000 to €2,500 per week, while villa rentals can range from €2,000 to €10,000 per week. During the low season, rental occupancy remains stable, making it an attractive option for long and short-term rentals.
Overall, Estepona is a great choice for those looking for a range of properties and amenities, as well as the potential for high rental yields. Its popularity with both tourists and expats also means that demand for rental properties remains strong throughout the year, making it a solid investment option.
Investing in a property in Spain can be a smart move for a number of reasons. The country has a stable economy and a well-established real estate market, and property prices in many areas have remained relatively affordable compared to other European destinations. Additionally, Spain offers a range of attractive tax incentives for property owners, including the ability to deduct mortgage interest and maintenance expenses from rental income.
In addition to the above-mentioned advantages, it's worth noting that there is currently a shortage of properties in many popular areas of Spain, including the Costa del Sol. This means that demand for rental properties is high, particularly during peak tourist season, and property owners can command higher rental rates. Furthermore, as the shortage of properties continues, it is expected to drive up property values in the long term, making real estate investment in Spain an attractive option for investors looking to maximize their return on investment.
Costa del Sol is a region with a lot of potential for real estate investors. By focusing on some of the most desirable neighborhoods in the area, investors can take advantage of solid rental yields and the potential for long-term appreciation. Whether you're looking for a luxurious vacation property or a more affordable investment opportunity, there's likely a neighborhood in Costa del Sol that will meet your needs.
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