Free Report · 2025 Edition
Costa del Sol Property
Investment Report 2025
Data-driven insights into Benalmádena’s property market. Rental yields, price trends and the best areas to invest in 2025.
Market Snapshot
Key Investment Numbers
Benalmádena continues to outperform many European coastal markets. Here are the headline figures driving investor interest.
6.8%
Average Rental Yield
Benalmádena’s short-term rental yields outperform most European coastal markets, with Puerto Marina driving yields of 8–9% in prime locations.
+9.1%
Annual Price Growth
Property prices in Benalmádena rose 9.1% year-on-year in 2024, driven by sustained international demand and limited new supply.
€2,650
Avg. Price per m²
Significantly below Marbella (€4,200/m²) and comparable European coastal resorts, offering excellent value for investors.
88%
Occupancy Rate
Tourist apartments in Benalmádena average 88% occupancy across the year, with peak season reaching near 100%.
The Opportunity
Why Invest in Benalmádena?
Benalmádena offers a unique investment proposition: home to Puerto Marina (voted Best Marina in the World), the iconic Tivoli World theme park, and the Teleférico cable car with panoramic views, it attracts over 2 million tourists annually — driving exceptional rental demand year-round.
The Spanish government's commitment to infrastructure investment — including the planned AVE high-speed rail extension to the Costa del Sol — is expected to further boost property values over the next decade.
With short-term rental regulation becoming more structured, licensed properties in prime locations are commanding premium yields. Early movers who secure licences now will benefit from reduced future competition.
Whether you're looking for hands-off rental income, a holiday home that pays for itself, or long-term capital appreciation, Benalmádena offers a compelling proposition with prices still well below neighbouring Marbella.
+52%
Property price growth in Benalmádena since 2019
Inside the Report
What You’ll Learn
- 1Executive summary and market overview
- 2Benalmádena vs. Marbella vs. Fuengirola — comparative analysis
- 3Neighbourhood-by-neighbourhood investment breakdown
- 4Short-term vs. long-term rental strategy comparison
- 5New-build vs. resale: pros, cons and ROI projections
- 6Tax guide for non-resident property owners
- 7Golden Visa programme: requirements and process
- 8Property management costs and service providers
- 95-year price forecast from leading analysts
- 10Recommended properties and development opportunities
Investor Questions
Investing in Benalmádena: FAQs
The questions we hear most from international investors looking at the Costa del Sol.
Why invest in Benalmádena rather than Marbella?
Benalmádena offers strong tourism-driven rental demand while remaining more affordable than neighbouring Marbella, where average prices per square metre are considerably higher. For many investors, this combination of lower entry prices and consistent visitor numbers makes Benalmádena attractive value on the western Costa del Sol.
What kind of rental yields can investors expect in Benalmádena?
Yields depend heavily on location, property type, and whether you let short-term or long-term. Prime, well-located properties — particularly around the marina and beachfront — tend to achieve the strongest short-term holiday-let returns, while areas with year-round populations can offer steadier long-term rental income.
Can foreigners buy property in Spain as an investment?
Yes. There are no restrictions on foreigners buying property in Spain, and many international investors own homes on the Costa del Sol. You will need an NIE (foreigner identification number) and a Spanish bank account, and it is strongly advised to use an independent lawyer to handle due diligence and the purchase.
What taxes and costs apply to property investors in Spain?
Buyers should budget for transfer tax or VAT depending on whether the property is resale or new-build, plus notary, registry, and legal fees. Ongoing costs include the annual IBI property tax, community fees, and income tax on rental earnings, which differs for residents and non-residents. A local tax adviser can confirm your specific position.
Do I need a licence to run a short-term holiday rental?
Short-term tourist rentals in Andalucía generally require a tourist licence and registration with the regional authorities. Regulation has become more structured, so it is important to confirm a property's licensing status before buying if holiday letting is part of your plan, and to factor compliance into your projections.
Is now a good time to invest on the Costa del Sol?
Benalmádena continues to benefit from sustained international demand, limited new supply, and ongoing infrastructure investment in the wider region. As with any property market, timing depends on your goals and budget, so the report's neighbourhood breakdown and forecasts are designed to help you weigh the opportunity for your situation.
Get the Free Report
Enter your details and we’ll send the full 2025 Investment Report to your inbox.