A Prime Destination for Value, Lifestyle, and Strong Returns
Nestled along Spain’s iconic southern coastline, Marbella is more than just a glamorous beach destination—it’s a prime hotspot for high-end real estate investment. In this guide, we’ll explore why Marbella and the wider Costa del Sol region continue to attract savvy investors from all over the world, focusing on rental income, property appreciation, tax advantages, and current market trends.
Short-Term Rentals: A Steady Stream of Income
One of the main drivers of investment in Costa del Sol is the lucrative short-term rental market. With year-round sunshine and a booming tourism industry, demand for holiday rentals is consistently high.
In 2023, according to Gesvalt, rental prices in Costa del Sol increased by 14.7%, reaching an average of €12.6/m². Marbella outperformed the regional average with €16.70/m², a 22.1% year-over-year increase. Estepona saw a remarkable 34.9% growth in rental prices.
Turnkey Property Management Services
For investors who prefer a hands-off approach, Marbella offers a wide range of professional property management solutions. From online listings and booking coordination to maintenance, guest services, and financial reporting—these services allow you to maximize rental income with minimal involvement.
Long-Term Appreciation: Building Value Over Time
Beyond rental income, long-term capital appreciation is a major reason investors choose Marbella. Due to steady demand and limited supply, property values have followed a consistently upward trajectory in recent years.
According to Idealista, here’s how prices evolved in 2024:
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Marbella: +18.6% | €4,138/m²
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Estepona: +19.3% | €2,993/m²
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Manilva: +18.8% | €2,149/m²
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Benahavis: +7.5% | €3,981/m²
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Sotogrande: +7.8% | €2,723/m²
Tax Benefits: A Fiscally Friendly Environment
Buying property in Andalusia also brings favorable tax benefits, whether you’re a resident or not. Spain’s tax system offers various deductions for rental income and capital gains, making it a strategic move for investors.
Non-Residents Can Deduct Expenses Such As:
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Mortgage interest
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Local property taxes and HOA fees
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Legal and notary costs
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Advertising and rental platform fees
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Utilities (water, electricity, gas, internet)
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Insurance premiums and maintenance
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Security and concierge services
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Property management and accounting services
Andalusia recently implemented reforms that lowered key property-related taxes, making it Spain’s most tax-friendly region. The current government, in place since 2019, continues to reduce or eliminate various taxes, reinforcing the region’s appeal to international buyers.
A Growing International Market
International buyers continue to play a key role in Costa del Sol’s real estate landscape. OMAU reports that 34% of all buyers are foreigners, a significant indicator of the region’s global popularity and trust among foreign investors.
Conclusion: Why Marbella is a Smart Investment
With stunning landscapes, modern infrastructure, and a thriving market, Marbella and Costa del Sol offer an unbeatable investment opportunity. Strong rental returns, consistent property appreciation, tax incentives, and professional property services all contribute to making this region one of Europe’s most profitable and secure investment destinations.
📞 Contact us today to discover exclusive investment opportunities in Marbella and Costa del Sol. Your next big move starts here.
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