Spain Guide


Costa del Sol Property

Generally speaking Costa del Sol property is pricier than other areas of Spain as it's one of Europe's premier tourist destinations, appealing to both the package holiday market and the seriously wealthy. Prices there have rocketed over the last decade with cash rich buyers from the USA and all over Europe investing in homes in the sun. Many fear the bubble will burst sooner or later but even if property prices take a downturn there's no sign of the demand for holiday lets in this area abating.

With its easy access to the ski slopes of the Sierra Nevada (Europe's most southerly ski resort) and huge number of golf courses, the Costa del Sol is a year round holiday destination. So if you're planning to let your property you'll have a good chance of bookings for several months of the year, not just in high season, as long as you get the location right. Many owners who divide their time between the UK and Spain find they can more than cover their mortgage payments with the proceeds of summer season lets.

Obviously prices vary according to which part of the Costa del Sol you're looking at. Marbella's famous "Golden Mile" is the most expensive place to buy but it's also where you're likely to get the best return on your investment. This is the coastal strip running from the west of Marbella to the glitzy marina at Puerto Banus. It's where people go to celebrity spot and ogle at the Ferraris which cruise this section of coastline. You're going to need more than a few pennies in your pocket to invest in a penthouse suite overlooking the Mediterranean in this part of the world. Prices are lower to the west of Marbella and east of Malaga but then if you're looking to let your property, you'll find rental tariffs drop the further you go from these areas.


There are still some good bargains to be had in the towns and villages of the Andalucian hinterland where property prices are considerably lower than along the coast. Of course the letting potential reduces dramatically the further away from the coast you go. But if you're planning to retire in Spain or you want a holiday property solely for your own use, then a place inland may be the best solution for you.

Many ex pats are now investing in the so called "white villages" in the hillsides of inland Andalucia. Places such as Frigiliana and Competa (inland from the coastal resort of Nerja) are becoming increasingly popular both with ex patriate residents and discerning tourists who want to appreciate the beauty of Andalucia without the frantic activity of the beachfront. You can buy a townhouse here (or a new villa in one of the developments which are springing up on the hillsides around the pueblos) for far less than you'd pay for a property on the coast. Owners are finding that as long as their villa has a private or even communal pool, the property still has letting potential even if it's a few miles from the seafront.