If you’re an investor with an eye for real estate, you’ve probably heard of the charms La Costa del Sol offers. This stunning coastal cities of Malaga, Marbella and Estepona, nestled along the sun-kissed shores of the Mediterranean, presents an incredible opportunity for those considering short-term rental investments. Following on from our previous blog outlining the investment strategy of buying land, building and reselling, in this blog, we’ll explore the myriad benefits of investing in short-term rentals in La Costa del Sol and why it’s a wise choice for investors seeking attractive returns.

Year-Round Demand

Malaga, Marbella and Estepona are more than just summer destinations. The mild Mediterranean climate ensures that tourists and visitors flock to its shores all year round. From sun-soaked summers to mild winters, there’s never a dull moment in La Costa del Sol. This continuous influx of tourists and seasonal visitors guarantees a steady stream of potential renters for your property.

Lucrative High Seasons

The summer high season is when profits boom. La Costa del Sol experiences a peak tourist season during the summer months, attracting travelers from all corners of the globe. This translates to premium rental rates and high occupancy levels during this time. Weekly rates are the same as monthly rates in the low season.

For example: If your rental property generates 2.000€ per month in the low season, you can generate 2.000€ PER WEEK in the summer months. Following this example, if you do long term rental, you can generate 24.000€ gross per year. With a short term rental investment plan, you can double your income to 48.000€ gross per year. By capitalizing on these cities busiest months, you can enjoy significantly higher rental income.

Rapid Return on Investment

The demand for short-term rentals in La Costa del Sol, especially in prime locations like the Golden Mile, Puerto Banus, Malaga center, Marbella and Estepona leads to competitive rental rates. This can result in a quicker return on investment compared to long-term leases. With the right pricing strategy, you can recoup your initial investment in a shorter period.

Property Appreciation

La Costa del Sol’s real estate market has shown consistent growth over the years. Investing in a property in the major cities not only generates rental income but can also appreciate in value. As the area continues to attract tourists and homebuyers alike, the long-term prospects for property value increase.

Diversification of Income

Investing in short-term rentals in La Costa del Sol allows for diversification of your income streams. Instead of relying solely on traditional investments like stocks and bonds, you can create a stable income from rental properties. Diversification can be a valuable risk management tool in any investment portfolio.

Tax Benefits

Investors in La Costa del Sol can benefit from certain tax advantages, particularly regarding rental income and expenses. We can help you consult with a local tax expert to understand how to optimize your financial gains while abiding by tax laws.

Property Management Services

For those who don’t live in Marbella, property management services are readily available. We can handle everything from guest check-ins to cleaning and maintenance, making it easier for remote investors to manage their properties effectively.