Are you searching for a profitable investment opportunity that combines luxury living with substantial returns? There is no better place than Marbella, Spain. Where investing in rental properties presents an attractive opportunity. Marbella has a reputation for being a coastal beauty and a world-class experience. It’s the perfect locale for super ships, super-fast cars, and a good share of super-sized luxury. It also happens to be the property investment hotspot on the Costa del Sol. Over the past few years, the property market on the Costa del Sol has seen an increase in demand, and this trend is expected to continue through 2024.
Overview of Marbella, Spain
Spain is the world’s third-most-popular tourism destination, after only France and the US. A holiday rental property here is consequently a very obvious and attractive investment.
Over the past few years, Malaga province has seen record-breaking tourism numbers, with another record-breaking summer expected. There are many things that make Marbella attractive, including a winning location with strong infrastructure and easy transportation. Marbella is also situated at the most southerly point of Europe and sits at the base of La Concha Mountain. It’s also the surrounding mountains that provide what’s known as a micro-climate, which makes the Costa del Sol mild in most seasons.
Marbella and its area are the most popular year-round tourist destinations of all the Spanish Costas. There are enough residents here during the winter months. Because of its endearing popularity throughout Europe and now North America, rental properties have become a hot commodity. Costa del Sol is also a very good place to invest in a buy-to-let or rental property.
Reasons To Invest In Rental Property On The Costa Del Sol
Second homes have been a good investment since 2008, when the real estate bubble burst. Marbella and surrounding areas like San Pedro, Puerto Banus, and the Golden Mile are still very popular and have led the entire province to full recovery. You can get a two-bedroom flat on the Costa del Sol for £116,000 and a luxurious apartment in Marbella with sea views for around £700,000. It just depends on where you look. Marbella properties for sale are always popping up, and they’re listed here.
Affordable Property Price
Costa del Sol is largely a resale market. Currently, there is a much greater supply of more affordable alternatives. There are currently no new builds available, however. That’s not true at all. There are more new builds in Marbella now than there have been in almost 8 years, and construction is on the rise.
Spanish Real Estate Rises
Since 2024, sales and inquiries have been rising fast. Our team at KMS Property has seen this first-hand, as have lawyers and mortgage brokers. It is most surprising that the UK shows such a high level of interest. British people are looking for a second home abroad, and since 2014, the number of property buyers from the UK has increased year on year to date.
Economic factors also contribute to this, with the European Central Bank cutting its benchmark interest rates, prompting lenders to lower mortgage rates. Many foreign investors are encouraged by the broader notion that the economy is recovering. Since 2016, buyers have shown more confidence in the Spanish economy and so have moved to invest.
Invest in Economic Growth
As you can well imagine, or as you already know, it has been a long journey from years of struggle. The crisis led to the repossession of thousands of homes, especially on the Costa del Sol and in the Mediterranean. Developers were overstretched or owners couldn’t keep up with repayments.
But today, that’s all changed, and with the growing Spanish economy, property prices are expected to rise. Therefore, now is the best time to take advantage. Buying a rental property now can ensure you make money in the summer. Don’t forget that Malaga province will receive 18 million tourists this summer. Many of those will need a place to stay, and many more will go for independent living. You can cash in on your rental property this way.
Market Opportunities
Spanish property market projections for 2024 are the most important reason to buy now. Property sales this year, especially holiday homes, are set to be the most profitable to date. Marbella’s property market will stand alone. Spanish property markets have been ups and downs the past couple of years, as we all know. However, Marbella has always managed to stay on top and maintain stability.
Even when it comes to specific property investors, it was only 5 years ago that the market relied almost solely on Russian buyers in search of luxury properties in Marbella. But today, that’s changed, and now we see the British moving in along with Germany, Belgium, Holland, and the Scandinavian countries. There are even Americans looking to Marbella for a fast return on investment.
Conclusion
Today, buyers are no longer motivated by discount prices but rather by the lifestyle and reputation Marbella offers. Marbella offers them the opportunity to purchase affordable properties in a location with timeless charm. All of these factors have contributed to a slow increase in property prices, particularly in the Golden Mile and Nueva Andalucia areas. In 2024, property prices will steadily increase, as well as the number of sales per month.
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