Investing
Property on the Costa del Sol as a valuable investment
Discover the possibilities of property on the Costa del Sol as a valuable investment, both for personal use and for rental income and wealth building.
Strategic investment opportunities
Strategic investment opportunities in Spain
For many buyers, investing in Spanish property isn't just a lifestyle choice, it's above all a strategic decision. The Costa del Sol remains one of Spain's most attractive regions thanks to its climate, international demand, and structural market growth.
We help you gain insight into the opportunities, risks, and financial possibilities, so you can make a well-considered decision that fits your goals.
Market development
Market development on the Costa del Sol
The region remains popular year after year with both international buyers and investors. Towns such as Marbella, Estepona, and Mijas remain in demand thanks to their location, amenities, and high quality of life.
Due to strong international demand and a limited supply of quality homes, the market stays dynamic, with steady demand for both purchase and rental properties.
In numbers
Key benefits of investing on the Costa del Sol
The Costa del Sol offers a strong combination of value growth, stability, quality of life, and tax advantages.
±14%
Average value growth in the province of Málaga in 2025
15-18%
Recorded value growth in 2025 in municipalities such as Estepona
40%+
Of purchases in Estepona and Marbella are by foreign buyers
€700,000
Wealth tax exemption per person, and fully waived in Andalusia
Value growth
The numbers and outlook behind the price growth
Prices keep rising due to high international demand and limited supply. In recent years the province of Málaga has shown strong price growth, with increases in municipalities such as Estepona running even higher.
+69%
Average price growth on the Costa del Sol, 2015 to 2025
+110%
Price growth 2015 to 2025 in prime locations such as Marbella and Estepona
€4,500 – €8,000
Current new-build price per m²
Outlook 2026-2030
- Expected annual growth of 4 to 8%, depending on location and construction type.
- Structural housing shortages keep the pressure on prices high.
- Construction costs (labour and materials) keep rising, which adds extra value to new build.
Conclusion
Value growth on the Costa del Sol isn't hype-driven, it's structural: powered by sustained demand, limited supply, and rising construction costs.
International demand
Explosive growth in international buyers
The Costa del Sol is southern Europe's international hotspot. The Netherlands is now among the top three buyer nationalities, after the UK and Scandinavia.
42%
Of all purchases on the Costa del Sol are made by international buyers
+85%
Growth in purchases by foreign buyers since 2015
+150%
Growth in Marbella, Estepona, and Benahavís over the past 10 years
€450,000 – €1.2M
Average purchase budget of an international buyer
Tourism
Tourism at record levels
The Costa del Sol is a twelve-month destination: there's no seasonal dip like you'd find in other coastal regions.
11.1 million
Tourists per year on the Costa del Sol
22 million+
Passengers per year through Málaga Airport
+8.2%
Annual tourism growth over the past 5 years
Outlook 2026-2030
- International demand is expected to grow 4 to 6% annually, based on Spanish registration data.
- Higher taxes and living costs in the Netherlands and Belgium keep reinforcing demand for Spain.
- The new-build shortage persists, keeping demand structurally above supply.
- Turespaña expects the Costa del Sol to become one of Europe's top three growth regions, with an estimated 20 to 25% more tourism by 2030.
- More direct flight connections from Europe are increasing capacity to the region.
- The number of overwintering visitors and long-stay digital nomads keeps growing strongly.
Conclusion
Rising international demand means higher value growth, stronger rental security, and lower risk for your investment. More tourism means higher occupancy and a more stable rental yield.
Personal use and investment
Ideal for personal use and investment alike
Property on the Costa del Sol combines value growth with the option of personal use. Thanks to the climate, the amenities, and the long high season, a second home for partial personal use remains appealing, without detracting from its investment value.
Tax advantages
Spreading your wealth
Spanish property offers a stable physical asset, potential value growth, and, if rented out, additional income. Rental income is taxed at fixed rates. For residents of EU and EEA countries, a rate of 19% applies on net rental income. For non-EU residents this is 24%.
Wealth tax
No wealth tax in Andalusia
Spain has a general exemption of €700,000 per person for wealth tax. Above this threshold, national rates rise from 0.2% to 3.5%.
In Andalusia, however, this tax is fully waived thanks to a regional 100% rebate. This means both residents and non-residents pay no wealth tax on their assets in Andalusia, regardless of the value of their property. This measure makes investing on the Costa del Sol particularly attractive from a tax perspective.
Rental
The rental market: strong fundamentals
Rising tourism and a structural housing shortage keep the rental market strong, for both long-term and short-term rental.
Long-term rental
95%
Year-round occupancy for long-term rental
+9%
Average annual rent increase over the last 3 years
Short-term rental, occupancy by season
90-98%
Occupancy in high season
70-85%
Occupancy in mid season
50-65%
Occupancy in low season
Average short-term rental rates rose by roughly 7 to 9% a year over the last 3 years.
Outlook 2026-2030
- Rents are expected to keep rising 5 to 7% annually.
- More remote work and overwintering programmes are leading to longer stays.
- Airbnb and Booking projections forecast 12 to 18% booking growth in southern Spain.
Conclusion
Both long-term and short-term rental remain a strong, scalable source of return on the Costa del Sol.
Please note: a licencia turística is required for short-term (holiday) rental. Without this licence you risk substantial fines. We're happy to advise you on the options and conditions for your specific situation.
The figures and outlook on this page are indicative and based on current market data and reports. They're not a guarantee of future value development or returns, and don't constitute financial advice.
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