Why Spain Is Still a Top Choice for Real Estate Investment in 2025
By Vivi Real Estate | 2 de July de 2025 |
Imagine stepping off a plane into warm Mediterranean sunshine, the scent of sea salt and orange blossom in the air. Spain isn’t just a place to visit; for many, it’s a place to invest, live, and build a future — especially with the expert guidance of a trusted real estate agency malaga to help you navigate the vibrant property market.
In 2025, Spain will remain one of Europe’s top real estate markets, beloved for its lifestyle, weather, and the stability of its rental income. But there’s a modern twist: buyers now look for homes that fit flexible, hybrid lifestyles. Holiday homes aren’t just for two weeks in August anymore. They’re digital nomad hubs, winter getaways, and year-round rentals.
At the heart of this transformation is the holiday rental costa del sol market — a unique blend of investment potential and lifestyle joy.
In this post, we’ll explore why Spain still makes sense in 2025:
- The timeless attractions that keep investors coming
- New trends changing what (and where) buyers choose
- The hottest spots to invest on the Costa del Sol
- Practical steps to invest wisely and avoid surprises
Whether you’re a seasoned investor or dreaming about your first Mediterranean property, let’s see why the Costa del Sol is still the smart choice.
Why Spain Still Captivates Buyers
The magic of lifestyle and climate
Spain offers more than 300 days of sunshine a year, plus rich cultural traditions, fresh cuisine, and relaxed coastal living. This combination keeps international buyers coming back decade after decade.
A tourism giant that keeps delivering
Despite global shifts, Spain ranks among the world’s top travel destinations. The Costa del Sol remains especially popular with travelers from the UK, Germany, France, Scandinavia, and the Middle East — ensuring steady demand for holiday rental Costa del sol homes.
Steady, predictable rental income
Coastal hotspots like Marbella, Fuengirola, and Benalmádena enjoy high occupancy rates in peak seasons. Many owners see 6–10% gross yields on well-chosen holiday rentals.
Transparent buying process for foreigners
Spain offers clear laws, local property experts, and established financing options, making it easier than many European countries for foreign buyers.
World-class infrastructure upgrades
Modern airports like Málaga-Costa del Sol, high-speed trains, new marinas, and improved highways help tourists and residents move seamlessly.
Wide buyer base
Spain isn’t only for retirees anymore. Families, digital nomads, young professionals, and investors from across Europe and beyond now shape demand.
Smart Trends Shaping the Market in 2025
Spain’s property market has matured. Here’s what’s driving decisions in 2025:
From seasonal to hybrid-use homes
Buyers want properties they can live in part of the year, rent when away, or use as remote work bases. Homes with good internet, private terraces, and extra space for an office rent faster.
Green and energy-efficient homes
New builds include better insulation, solar panels, and smart systems to cut costs — features that attract eco-conscious tenants and buyers.
Turnkey convenience
Many foreign investors choose newly built or fully renovated homes they can list on Airbnb or Booking.com immediately, skipping renovation headaches.
City revival beyond beach resorts
Málaga’s cultural scene, tech sector, and walkable historic center now appeal to younger buyers and digital nomads who prefer city life over resort living.
The digital nomad visa effect
Spain’s digital nomad visa opened the door for non-EU workers to live and work legally — boosting demand for mid- and long-term rentals in well-connected towns.
Luxury demand stays strong
Penthouses in Marbella, sea-view villas in Sotogrande, and gated communities near golf courses continue to attract high-net-worth buyers, often seeking privacy, space, and brand prestige.
Golden Visa still relevant
Despite changes, the program remains a draw for non-EU investors who want a European residency path through property.
Focus on lifestyle, not just ROI
Buyers increasingly care about walkability, local cafes, wellness facilities, and cultural life — making well-located homes more resilient in value.
Where to Invest Next on the Costa del Sol
The Costa del Sol stretches over 150 km, and each town offers something unique. Here’s a closer look at the top spots:
Top Investment Areas on the Costa del Sol in 2025
| Area | Property Type Highlights | Buyer Profile | Rental Demand | Why Invest in 2025 |
| Marbella | Luxury villas, sea-view apartments | High-net-worth individuals, retirees | Year-round (strong summer peak) | Glamorous lifestyle, golf, Michelin restaurants, brand-new gated communities, steady capital appreciation |
| Fuengirola | Modern apartments, townhouses | Families, remote workers | High in summer, strong mid-term | Lively promenade, family-friendly vibe, affordable vs. Marbella, great train connections |
| Estepona | Boutique apartments, beachfront homes | Retirees, younger professionals | High summer, growing off-season | Authentic old town, cultural events, new eco-developments |
| Málaga City | Historic flats, new urban apartments | Digital nomads, professionals | All-year rental demand | Thriving cultural and tech hub, walkability, stable mid-term rents |
| Benalmádena | Holiday complexes, sea-view apartments | Holiday buyers, families | Seasonal peak in summer | Marina, amusement parks, close to airport, solid holiday rental costa del sol market |
| Mijas Pueblo | Townhouses, village homes | Retirees, lifestyle buyers | Steady cultural tourism | Authentic Andalusian village, mountain views, charming squares, lower prices |
Practical Tips for Buying Smart in 2025
Even the sunniest market rewards preparation. Here’s what to keep in mind:
Work with trusted local experts
Rental rules and short-term licenses differ between towns. Vivi Real Estate helps navigate regulations, local demand, and fair pricing.
Understand your ideal guest
Young professionals? Families? Retirees? Their needs (space, pool, proximity to nightlife) shape what rents well.
Research year-round vs. seasonal demand
Beachfront rentals fill up in summer; Málaga City apartments or golf properties can stay booked all year.
Budget for taxes and fees
Besides the purchase price, plan for notary fees, transfer tax (~8–10%), property tax, community fees, insurance, and management costs.
Short-term rental licensing
Many towns require registration to rent to tourists legally. Rules evolve, so check before buying.
Think resale value
Properties near transport, shops, and beaches, with modern energy ratings, appeal to future buyers.
Consider professional property management
Ideal if you live abroad — they handle bookings, guest questions, cleaning, and local regulations.
Diversify strategy
Some owners split time: live in the property part of the year and rent it when away.
Watch currency trends
Exchange rates can impact final costs for non-Euro buyers.
Keep paperwork organized
NIE number (foreign tax ID), bank account, and legal checks save time and stress.
Who’s Buying in 2025?
Today’s buyers are more varied than ever:
- Digital nomads wanting a stylish flat near co-working spaces.
- Families looking for safe, walkable towns with good schools.
- Retirees seeking mild winters and part-time rental income.
- Investors want steady ROI and long-term capital growth.
- Lifestyle buyers mixing vacation joy with investment sense.
This diversity keeps the market balanced — even when trends shift.
Conclusion: A Smart, Sunshine-Filled Choice
Spain’s real estate market, especially along the Costa del Sol, remains more than just a postcard. In 2025, it offers:
- Strong tourism and rental demand
- New trends: eco-friendly, hybrid living, digital nomad appeal
- A mix of lifestyle, income, and appreciation
- A mature, transparent buying process for foreigners
A well-chosen holiday rental costa del sol property still delivers: the joy of living under the Mediterranean sun and the comfort of knowing your investment is working for you.
Ready to turn your dream of owning a holiday rental costa del sol property into reality? Contact Vivi Real Estate today and let our local experts guide you every step of the way — from finding the perfect home to maximising your rental returns