Investment Opportunities on the Costa Del Sol (2023)

Investment Opportunities on the Costa Del Sol (2023) - Verdin Property

The Costa Del Sol is home to destinations that are well-known worldwide, such as Marbella, Benahavis and Malaga. However, whilst the real estate market has been extremely bouyant in recent years with a post-Covid boom sending prices rocketing upwards, there are still areas that are relatively untapped and represent excellent investment opportunities.

Areas with outstanding investment opportunities

One of the current emerging areas that presents outstanding investment opportunities in real estate is Estepona. Estepona is a charming coastal town located west of Marbella. It has seen significant development in recent years, with new residential projects and infrastructure improvements. Estepona offers a more relaxed and authentic Spanish experience compared to other areas on the Costa Del Sol. The town has beautiful beaches, a picturesque old town, and a wide range of amenities such as golf courses, restaurants, and shops. Investing in real estate in Estepona can be a smart choice as property prices are still relatively affordable compared to more established areas, and there is a growing demand for holiday rentals and second homes in the area.

Another emerging area to consider is Manilva. Located between Estepona and Sotogrande, Manilva offers a mix of traditional Spanish charm and modern amenities. The area has beautiful beaches, a marina, and several golf courses. Manilva is known for its vineyards and wine production, which adds to its unique appeal. The town has seen an increase in new residential developments, including luxury apartments and villas. Investing in real estate in Manilva can be attractive as property prices are still relatively affordable, and there is potential for capital appreciation as the area continues to develop and attract more visitors and residents.

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La Morera Playa is a recent development in Marbella East. Stay tuned for two exclusive penthouses coming soon to our portfolio!

Marbella East is another location that, despite being well established, offers properties that are a fair amount cheaper than those in areas such as Nueva Andalucia and Guadalmina Baja. Marbella East is comprised of all the areas east of Marbella town and offers a more tranquil and exclusive atmosphere compared to the bustling city center. The area is known for its beautiful beaches, golf courses, and luxury resorts. Marbella East has seen an increase in new residential projects, including high-end apartments and villas. Investing in Marbella East can be a lucrative opportunity as property prices are still relatively competitive compared to the more established areas of Marbella, and the demand for luxury properties in this area is constantly growing.

What factors contribute to the growth and potential of these emerging areas?

One of the main factors contributing to the growth and potential of the emerging areas mentioned above is infrastructure development. As these areas continue to develop, there is an increase in the construction of new roads, highways, and public transportation systems. Improved infrastructure not only enhances accessibility but also attracts investors and tourists, leading to an overall growth in the real estate market.

Another factor is the availability of amenities and services. Emerging areas are often characterized by the establishment of new shopping centres, schools, hospitals, and recreational facilities. The presence of these amenities makes the areas more attractive to potential buyers and investors, as they offer convenience and a higher quality of life. The development of these services further contributes to the growth and potential of these emerging areas.

Estepona new boulevard - Verdin Property
Estepona is seeing a plethora of infrastructure development aimed at minimising the emissions from the town and enhancing visitor enjoyment and safety

The natural beauty and climate of the Costa Del Sol also plays a significant role in the growth and potential of emerging areas. The region is known for its stunning beaches, picturesque landscapes, and pleasant weather throughout the year. These natural attractions draw in both tourists and investors who are seeking a desirable location for their real estate investments. 

The number of tourists visiting Costa Del Sol has been steadily increasing year after year. – bloomberg.com

In addition to infrastructure, amenities, and natural beauty, government policies and incentives also contribute to the growth and potential of these emerging areas. Local governments often implement policies that encourage investment in these areas, such as tax incentives or streamlined bureaucratic processes. These policies create a favourable investment environment and attract both domestic and international investors. You can read more about the tax incentives on offer on the Costa Del Sol by clicking the image below.

Investment Opportunities - Wealth tax scrapped in Andalucia - Verdin Property

What types of real estate properties are in demand in these emerging areas?

When it comes to the above locations, there is a growing demand for residential properties. This includes apartments, villas, and townhouses. Apartments are particularly sought after due to their affordability and potential for rental income. Villas and townhouses, on the other hand, offer more space and privacy, making them appealing to families and those seeking a higher-end property.

Commercial properties are also being snapped up. As the Costa Del Sol continues to attract growing numbers of tourists and expatriates, there is a need for various businesses and services to cater to their needs. This includes shops, restaurants, cafes, and hotels. Investors who are looking for opportunities beyond residential properties can consider investing in commercial properties to capitalize on the growing tourism industry in the region.

Furthermore, there is a rising demand for luxury properties. The Costa Del Sol has long been known for its luxury real estate market, and this trend is continuing in the emerging areas. High-end villas, penthouses, and beachfront properties are highly sought after by affluent buyers who are looking for exclusivity, stunning views, and top-notch amenities. These luxury properties often come with a higher price tag but offer a unique investment opportunity for those seeking a premium real estate portfolio.

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Discover luxury investments by using our website or contact us for a detailed search

What are the expected returns on investment in the emerging areas of Costa Del Sol?

The expected returns on investment can vary depending on several factors. One of the key factors is the location of the area. Some emerging areas may have a higher potential for growth and development, which can lead to higher returns on investment. Additionally, the type of property being invested in can also impact the returns. For example, investing in residential properties in emerging areas that are popular among tourists can yield higher rental income and capital appreciation. Overall, the expected returns on investment can be quite promising, especially if the right location and property type are chosen. 

Please ensure you speak to a tax advisor regarding investments, Verdin Property can only provide information based on our own knowledge, we are not qualified advisors and will bear no liability.

What are the potential risks and challenges associated with investing in these emerging areas?

Investing in emerging areas requires a long-term perspective. While these areas may offer great potential for growth, it may take time for the investment to fully mature. Investors should be prepared for a longer holding period and have the financial stability to weather any potential downturns in the market. It is important to have a clear investment strategy and exit plan in place to maximise returns. 

Don’t wait to buy real estate, buy real estate and wait.
– Will Rogers

How can I purchase a property on the Costa Del Sol?

Always ensure you use a reputable agency that has experience in your preferred location. Verdin Property primarily operates in the areas of Marbella, Benahavis, Estepona and Sotogrande, so we are well-versed in the areas we have covered in this article.

Make sure you check out our Buyers Guide which covers all the bases on how to purchase a property on the coast and we look forward to seeing you in our little slice of paradise very soon. Remember, there’s still time to be in your new home for Christmas!

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