Located in the south of Spain, the Costa del Sol is an ideal place to own property.
The region is renowned for its breathtaking coastlines which stretch over 150km and are dotted with popular seaside destinations such as Málaga, Marbella, Mijas, and Rincón de la Victoria.
Nicknamed the “Coast of the Sun”, the Costa del Sol sees over 325 days of sunshine every year. Tourists and expats alike are drawn to its sunny shores by upscale restaurants, luxury yachts, championship golf courses, and world-class shopping.
Those looking for a permanent or second home are attracted to the region by its year-round sunshine, beautiful beaches, charming coastal towns, and all-around high quality of life. Meanwhile, as one of Europe’s favourite tourist destinations, the Costa del Sol in Spain is a hotspot for property investors looking to generate a solid rental income from short-term lets.
Tourism
In 2022, the Costa del Sol achieved its best summer ever with tourist income exceeding €7.4 billion. The region welcomed over 12.4 million visitors annually, reflecting a 10% increase compared to 2021. Better still, the next year is set to be a record year in terms of visitor numbers and hotel occupancy, creating new opportunities for investors.
Connectivity
Located 8km outside of Málaga city centre, Málaga Airport makes the whole of the Costa del Sol region highly accessible. It is just over an hour’s drive from Sotogrande in the west and 45 minutes from Nerja in the east.
In the first half of 2023, over 10 million passengers passed through Málaga Airport for the first time ever according to the world’s leading airport operator, Aena. These figures represent a 23% increase compared to the previous year and are 9.2% higher than the same period in 2019.
Economy
A strong rebound in tourism in popular areas such as the Costa del Sol is helping to drive the Spanish economy forward, with GDP growth reaching 5.5% in 2022. In fact, Spain concluded the year as the highest-performing economy in the eurozone. With this, buyers continue to flock to the country in search of either a high quality of life (for expats) or strong and stable investment opportunities.
Business
As the largest city in the Costa del Sol by population, Málaga is a hub for international business. Over sixty multinational companies have a base in Málaga, including the likes of Google, Citigroup, EY, and Vodafone. This makes the Costa del Sol a popular location for entrepreneurs, young professionals, digital nomads, and investors.
Property Market
Despite rising interest rates and market uncertainty, the country recorded near-record sales last year, reaching levels not seen since 2007, and property prices grew by 7.2% according to Eurostat.
The Costa del Sol saw the largest property price growth in Spain in 2022, with values rising 13.5% over the year (Idealista). More recently, house prices rose by 4.16% in the first quarter of 2023, which was more than quadruple the national rate.
Rental Potential
Thanks to a booming tourism industry and substantial demand for short-stay accommodation, the Costa del Sol offers high occupancy levels and strong rental yields. In March 2023, rent prices grew by 14.7% year on year, according to valuation company Gesvalt. A significant shortage of available rental properties will continue to fuel rental growth in the coming years.
Visa Opportunities
By investing a minimum of €500,000 in residential property, foreign buyers can obtain a Spanish Golden Visa and secure residency in Spain for themselves and their family members. Along with the right to live and work in Spain, visa holders will have access to world-class healthcare and be able to travel visa-free across the Schengen Area.
In light of upcoming changes to the Portugal Golden Visa (which will mean real estate investments no longer qualify for the program), Spain offers an attractive alternative for non-EU investors hoping to secure EU residency.
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