Apartments for sale on the Costa del Sol – is it a good idea to buy one?
Intro
Buying property in Spain has become a popular topic not only on Reddit or Facebook forums but also in the media. It’s hardly surprising given property prices across some of the largest European cities. For example, as of June 2024, the average cost per square meter in Warsaw has reached €3,874, while homebuyers in Berlin and Vienna had to pay € 4,997 and € 7,715, respectively.
While, back in the day, purchasing real estate in the sunny South seemed out of reach, it’s become perfectly achievable not only for the wealthiest. It also makes for a great alternative to investing in a second property outside of your home country.
Spain’s Costa del Sol presents itself as one of the most popular areas in recent years – but does it really provide a promising perspective? I break this down in this article.
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Costa del Sol – which area does it cover?
On top of Málaga, Costa del Sol includes towns like Estepona, Vélez-Málaga, Manilva, Torremolinos, Frigiliana, San Pedro de Alcántara, Casares, Nerja, Fuengirola, Benalmádena, Marbella, Rincón de la Victoria, Torrox, and Mijas.
In reality, Costa del Sol as a region doesn’t have any official boundaries – it’s a term for the coastline that falls within the Málaga province.
Why you’ll love Costa del Sol
Costa del Sol is one of the most popular destinations in Spain, for both vacationers and holiday home seekers. Here are a few reasons why people love it (and so will you):
Great flight connections
Let’s be honest, how easy it is to get to a destination is as important as the destination itself. And when it comes to Costa del Sol, the journey is pretty much effortless. Malaga has the third largest airport in Spain, right after Madrid and Barcelona, with many flight connections, including those from Ryanair and Wizzair. The latter flies to Malaga from Warsaw five times a week, and the trip takes less than four hours. You can then take a train, and in 12 minutes you’ll be in the city center for as little as 1,80 euro.
Incredible beaches
Beaches in Costa del Sol are among the best ones in Europe – take it from someone who is a local. Many have been awarded the “Blue Flag”, which speaks to their high standard. The coastline extends for 159 kilometers and includes over 120 beaches, so undoubtedly, even the most demanding visitors will find one that suits their taste.
Torremolinos, Fuengirola, Marbella, and Torre del Mar all have world-class shorelines – they’re clean and offer facilities like bathrooms and showers. There are also plenty of seafood restaurants in various price ranges, serving fresh fish daily.
Great shopping
Many non-residents and locals say that Costa del Sol offers the best shopping experience in the entire country. As Spain’s official tourism website puts it, you can take your shopping spree “from tradition to glamor” – from local markets where you can buy artisan souvenirs to to boutique shops and high-end, international brands. The luxury shopping scene will likely continue to expand thanks to Marbella’s Puerto Banús, one of the most exclusive marinas in the Mediterranean.
It’s vibrant all year round
This is arguably the most important reason why buying property in Costa del Sol makes such a good investment. Unlike other touristic areas in the Mediterranean, restaurants and shops don’t massively close doors come October, only to reopen in April or May. There are two reasons – first, it’s good weather year-round, attracting visitors even during winter. Secondly, it’s the growing expat community, which we discuss in detail in the next section.
Six reasons why it’s worth buying properties in Costa del Sol
1. One of the top relocation spots
Costa del Sol has seen a significant population boom in its coastal line over the last decade. Let’s take Marbella, for one as that’s where I live. The National Statistics Institute reports that the city’s population grew for a 9th consecutive year in 2023, hitting over 156,000 inhabitants. Other cities like Estepona and Mijas are also seeing high demand. In fact, the entire Malaga province gained an additional 35,000 residents year-over-year. Many of these are foreigners, including Poles.
This demographic shift is turning this part of the country into a metropolitan area, where you can easily communicate in English. This removes the language barrier as a decision-making factor when buying property in Costa del Sol.
2. Good climate – particularly in winter months
It’s not a marketing gimmick to call this part of Spain the sunny coast. Reality lives up to the name, offering at least 300 sunny days in a year. Some areas, particularly those further away from the Strait of Gibraltar, get even more sunshine. All in all, the official site of the Andalucia region promises no more than 49 coveted days per year.
Unlike when you invest in certain other regions of the Mediterranean like the Greek islands, tourism doesn’t come to a hard stop for nearly six months. And so, those buying properties in Costa del Sol for rental purposes can expect to generate more revenue.
Numbers speak for themselves – Bloomberg reports that, in an otherwise ‘slow’ month in other parts of the continent, April 2023 hit a remarkable 74.14% hotel occupancy rate among tourists. Pair this up with year-round, new residents, and it’s no surprise why the property market is at an all-time high.
3. Great location
Costa del Sol’s landscape is very diverse making it a dream destination for both hikers and beach enthusiasts. It offers a good mix of coastal paths, mountainous trails, and lush countryside. And if you’re looking for a scenic, yet slightly more challenging route then the Sierra de las Nieves, Montes de Málaga, and other natural parks will provide plenty of trails.
For sun lovers, on top of relaxing on stunning sandy beaches, you’ll get plenty of opportunities to do water sports, including, windsurfing, surfing, kayaking, and scuba diving. The area also boasts some of the best golf courses not only in Southern Spain, but the entire continent – including the famous Cabopino of Marbella.
4. The prices of properties in Costa del Sol are rising so it's a good investment
If you’re considering to buy a property in Costa del Sol, then I think the time is now. The real estate market has recovered from the slight turbulence it experienced in 2023. Average rental prices as well as prices of apartments for sale on the Costa del Sol are going up. As of the first quarter of 2024, we have observed a 1.2% increase in sales prices and a 3.2% increase in rental prices. It now costs €2,412 per square meter to buy property in this region, with average rental prices around €14.32 per square meter. This reflects a 13.5% increase YoY. When it comes to ROI, this continuous price increase paints a positive picture if you ever decide to sell your property on the Costa del Sol.
5. Costa del Sol properties will be easy to rent out
If you’d like to rent your summer house when you’re not around, it will be easy. Each year, over 10 million tourists visit Costa del Sol. And 2023 was officially the best year in the region's history with a staggering 14 million visitors, marking a 12% year-over-year growth. This was the third consecutive record-breaking year, indicating a solid trend rather than an isolated case.
What’s also important is that Costa del Sol is more liberal when it comes to short-term rentals compared to other Spanish regions. Housing associations in the area are generally more tolerant and welcoming of tourists renting properties.
6. A variety of properties to choose from
Costa del Sol already has an over century-long tradition of international tourism, which means that you can find a wide range of properties on the market. From apartments in the most busy areas, all the way to inland villas in Marbella’s Sierra Blanca or Estepona’s Sierra Bermeja.
If you work with the right real estate agency, you won’t have trouble finding your perfect investment property – whether it’s one you want to move to permanently or rent out to vacationers.
7. Costa del Sol properties are newer
If you’ve ever visited busy tourist cities in the Canary Islands or Costa Brava, then you can certainly recall that the city skyline was dominated by high-rise buildings from the 1960s onward. These remnants of the mid-20th century tourist boom haven’t necessarily stood the test of time.
Many cities on Spain’s sunny coast are filled with low-rise buildings. But not only that – it’s seen as a prestigious destination, which translates into new developments. It’s a unique combination of beachside living and luxury.
8. It’s the right time for buying property in Costa del Sol as a foreigner
Costa del Sol is more than a sun-drenched retreat. It’s also one of the top expat destinations, making it an attractive location for those who want to relocate from chillier parts of Europe.
This popularity also makes it one of the best locations in the entire continent for real estate investment. Prices have been growing year over year, for both rental and residential properties, making it an attractive way to allocate your money. Also, it's worth noting that Spain allows foreigners to take out a mortgage from a local bank, allowing you to avoid high upfront costs.
If you’re looking to buy an apartment or a villa on the Costa del Sol, then it’s important to get in touch with the right partner. Real estate agents located in the area can help shortlist properties that meet your investment objectives (or even negotiate prices for you). Read on to find out how to find the right real estate agency.
If you have any questions on finding property in Marbella or elsewhere in Costa del Sol, then contact us – we're here to help.