Is it profitable to invest in luxury apartments in Marbella?
Beaches, mountains, nature reserves, exclusivity and luxury are some of the references that have positioned Marbella among national and international tourists who decide to visit the region for a certain period of time or even turn it into their new residence.
Since the beginning of its heyday in the fifties as a meeting point for the jet set, and after the Covid-19 pandemic, Marbella has become one of the most stable municipalities in which to invest in housing. It is a highly attractive location for buyers from all over Europe who want to invest in properties that can generate a passive income.
There has been significant activity in the Marbella real estate sector in recent years. This area of the Costa del Sol has achieved worldwide recognition as a tourist destination and as an investment destination in luxury homes and apartments. Do you want to know more about the real estate profitability of Marbella? Let’s see that.
Profitability of vacation rentals
Buying luxury houses to obtain a monetary return through rentals has become a frequent practice in the real estate market. Marbella becomes a target in this market for buying and selling holiday rentals.
The demand for penthouses, apartments or luxury houses in Marbella is a daily occurrence. Costa del Sol area, known for its luxury real estate, its exclusivity, and its unique lifestyle, creates demand among investors and buyers, which over time manage to revalue the value of real estate.
Not only Spaniards are looking to buy apartments near the coast, but also Europeans, who find the south of Spain as an ideal place to enjoy the summer months. The rental of apartments located in the seaside areas has increased by 8.95% in the last 12 months and offers an average return of 5.67% (urbanData Analytics).
In addition, the well-known "low season" that usually occurs in any destination has ceased to exist in Marbella. Sporting, social and cultural events, restaurants and golf courses have turned Marbella into a city that does not have low seasons and where there is always a flow of visitors. Therefore, the idea of investing in a luxury apartment in Marbella to make it profitable by renting it has become a recurring option among buyers and investors.
According to a recent study of rental profitability in coastal municipalities, property rentals in Marbella have a profitability of 4.8%. A percentage that has been growing in recent years.
Doubts between vacation rental or long-term stay in Marbella
Renting a luxury property is easy in an area like Marbella.
Vacation rentals allow us to have a higher short-term income than traditional rentals. In general, the weekly rent of a vacation rental corresponds, more or less, to the monthly amount of a long-term rental. This means that in one month of vacation rental we could obtain the same income as if it were the rent of four months of a conventional rental. All this depends, clearly, on the area, the conditions and the attractiveness of the property.
On the other hand, we will tell you that the demand for long-term rentals in Marbella continues to be high for families across Europe looking for a new place of residence.
If you are still unsure, think about each option's pros and cons. A traditional rental ensures you a fixed monthly amount, while a vacation rental will allow you to obtain an income almost four times higher in the short term, but with the risk that your home may be unoccupied for a few months. In reality, this can happen in both types of rentals.
Investment opportunities in Marbella
The Marbella real estate market is more solid and attractive than ever. This demand has not only been the result of regular buyers but has also been led by different investors and property developers, who have seen the investment opportunity in the Marbella market and have placed all their trust in it.
With the growing reception of new real estate investors in the area, Marbella is experiencing a peak in construction with investments of billions of euros. All this is under market studies and monitoring of work projects that aim for the profitability of real estate projects.
Undoubtedly, it is a municipality with great investment opportunities. Following the statistics of the Ministry of Development, the sale of properties in Marbella has been on trend since the third quarter of 2021, when 609 properties were sold; a figure that has been increasing until reaching 1,810 property purchase and sale transactions during the second quarter of 2022. These real estate transactions represent 14.12% of the purchase and sales of the province of Malaga.
Compared to 2020, Marbella's real estate transactions increased by almost 54% more. The end of the pandemic has persuaded a large percentage of buyers to acquire a home in Marbella.
Demand for real estate in Marbella is outstripping supply, so property prices are increasing. Even so, buyers are finding reasonable prices on exclusive homes in Marbella compared to other luxury destinations.
If you are thinking of monetizing the purchase of a property in Marbella by renting it, we recommend that you not only focus on what you like but also consider what the market demands. Opt for the areas of Marbella most in demand by buyers and tenants, which will ensure you have a constant demand if you decide to rent the home.
The closer your home is to the characteristics demanded by tenants, the easier and faster it will be to rent it and the sooner you will begin to make your investment profitable.
If you are looking to invest in luxury apartments in Marbella to rent, we suggest our project Dunique Marbella. A set of luxury penthouses, apartments and villas just 15 minutes from Marbella old town.
A perfect option in which to invest for all the benefits offered by the Dunique Residences & Dunique Villas homes. Designed to satisfy the needs of the most exclusive public with an innovative concept and in a unique enclave facing the sea!