Where to invest in the Costa Del Sol

Known as the sunshine coast, Costa Del Sol is in the Andalusian region of southern Spain between Sotogrande in the west and Nerja in the east. It comprises various well-known resorts, cities, and towns and is surrounded by mountains in the north and the Mediterranean Sea to the south.

Loved by tourists and expats alike, Costa Del Sol was once notorious for cheap package holidays and family friendly activities. Over the years however, parts of Marbella and Malaga have become synonymous with luxury breaks, exclusive golf courses and opulent real estate. So, here’s a few reasons you might want to consider investing in Costa Del Sol property.

1. Sun, sun and more sun. With more than 325 days of sunshine every year¹, it’s easy to see why this region attracts year-round visitors. Temperatures are hot to mild all year round and the summer months can offer up to 11 hours of sunshine per day.
2. From picturesque beaches, crystal blue seas, and majestic mountains, the Costa Del Sol landscape is truly breathtaking. The vast expanse of the coast offers visitors something different in every town, from flat, glistening stretches of sand to rugged, green hills.
3. Malaga Airport is the fourth largest airport in Spain and serves approximately 12.5million passengers a year². It’s less than an hour from most of the popular resorts along the sunshine coast and is easily accessible by road and public transport.
4. If you’re looking to relocate, then Costa Del Sol offers a readymade community of expats and it’s estimated that 18% of the population is made up of foreigners³.

The Costa Del Sol is roughly 150km long (or 93 miles) and is lapped by the warm Mediterranean Sea. The town of Malaga sits roughly in the centre of the region and it can be split into three distinct sections: Central Costa Del Sol, Western Costa Del Sol and Eastern Costa Del Sol.

In this section we explore some of the most popular cities and towns:

The birthplace of Pablo Picasso, this cool and chilled out city can be described as the gateway to the Costa Del Sol. It offers visitors and residents culture, fun and endless resorts to suit all budgets. With plenty to explore, from history-rich museums to awe-inspiring mountain views, Malaga offers a lot more than just an airport.

Known as the ‘jewel of the Costa Del Sol⁴, Marbella is the home of luxury yachts, high end golf courses and exclusive addresses. It is a wonderful mix of old whitewashed properties and new, plush developments. With 26km of beautiful beaches, Puerto Banus is the central marina characterised by posh shops and eateries.

The old town is steeped in history and lies at the foot of the Sierra Blanca mountains. With buildings dating back to the 16th Century⁵, beautiful orange trees and plenty of historical sites, Marbella is a perfect day trip if you can’t afford to stay in the big budget resorts.

If you’re looking to explore Spanish culture whilst basking in the sun, then Estepona offers both. With 20km of coastline, the town’s main beach Playa de la Rada is bursting with quirky little shops, restaurants, and bars. With nearby hiking trails and a botanical garden, Estepona offers holidaymakers the best of both worlds – relaxed resort life and a rich cultural history.

This area retains the feeling of a small village whilst offering great connectivity to the neighbouring areas of Marbella and Estepona. Located slightly inland, it’s surrounded by smart-looking developments and popular golf courses. It’s the ideal location for foreign buyers seeking the sun and sand of the Costa Del Sol without the large crowds of Torremolinos. It has a large community of British expats⁶ and enjoys a steady stream of year-round tourism.

Lying 400m above sea level, this beautiful village is approximately 10km from the coast. Many of the pretty houses boast hilltop views and the area has a friendly community atmosphere with a small population⁷. The area is popular with tourists but less busy than parts of the Costa Del Sol, retaining its traditional Spanish feel.

With 10 miles of glittering coast, this is the perfect location for water sport enthusiasts and is well connected to Malaga. Once a quiet fishing village, it is now the ideal spot for a quiet, relaxed lifestyle and popular with retirees.⁸

With views across Gibraltar and North Africa, this mountain village is characterised by narrow streets and tall, narrow houses. It’s a gorgeous base for a holiday home and offers the quiet of a quaint seaside location with access to the busier resorts of the sunshine coast.

Whether you’re looking for a holiday home, somewhere to spend your Golden years or you’re a savvy investor seeking to grow your international property portfolio, the Costa Del Sol offers something for everyone.

Whether you’re looking for a holiday home, somewhere to spend your Golden years or you’re a savvy investor seeking to grow your international property portfolio, the Costa Del Sol offers something for everyone.

However, as demand is quite high throughout the region, buyers should be prepared to be paying higher prices than in other parts of Spain.

Idealista, a leading European property portal, has found that prices in the region are at an all-time high, as demonstrated in the table below:

Sales of new-build properties increased by 41% at the end of 2020 and have remained steady ever since with more and more foreigners choosing to purchase along this coastal stretch.⁹ In fact property prices in this region have been consistently high when compared to the rest of the country.¹⁰

Rental yield in Costa Del Sol is estimated at around 6% with some parts of the coast achieving almost 8%¹¹. These figures are higher than the national average partly due to the lack of supply of long-term rental properties along the coast.

The lack of housing supply has been an issue in this region however there are plans for ongoing redevelopment in areas such as Malaga and Estepona¹². Whilst some tourist areas are very saturated, there is still a desire to grow and improve the area.

There are numerous universities dotted around the Costa Del Sol, making it an attractive place for foreign students. For example, the Marbella International University teaches courses in English and is affiliated with the University of West London. So, students can study in Spain and obtain a British degree. Other prestigious institutions include the University of Malaga and the Schellhammer Business School, in Estepona¹³.

If you’re interested in buying a slice of Spanish sunshine, then iad Overseas property consultants* are ready to help. They know the region well and can help you find your dream property, whether it’s a sea view apartment or a sprawling villa.

If you want more information on buying a property in Spain, then read our guide here.