Investing your savings into holiday property in Spain is an exciting enterprise – but there’s also a lot to think about before you make such a big financial commitment. Whether you’re looking for a dream villa in the south of Spain for family holidays or summer partying with friends, or as a lucrative short-term holiday let, you really can’t go wrong with Manilva and the Costa del Sol.
In terms of investment potential, Manilva and the Costa del Sol have the key advantages of being an established and popular destination, with beautiful beaches, plenty of things to do and see, a varied cuisine and thriving nightlife. And don’t forget that the area also has the best climate in Spain. Winter temperatures average a mild 16-17 degrees centigrade and summer temperatures in the Mediterranean tend to be in the balmy but not unbearable 30s.
The Costa del Sol is unarguably one of the most popular family holiday destinations in the world, with a choice of attractive locations for those considering the purchase of a holiday home or rental property in Spain. Property prices vary across the area, depending on the exact location and type of property.
The most desirable areas are places such as Malaga City, Marbella and Sotogrande, the latter two being just 20 minutes away from Manilva. Interestingly, all prime residential locations have seen a steady increase in demand recently, which has intensified further over the last year. “Sales in the luxury end of the market (over €1 million) have accelerated to a level we have never witnessed before in our history,” says a leading property expert. The reason for this unprecedented demand is purely Covid related: the pandemic has fundamentally changed how and where we want to live and high net worth individuals are using their financial firepower to invest in luxury real estate anywhere on the planet.
If you want to invest in holiday property on the Costa del Sol but not pay a premium, there are certainly options here too. Manilva and the area of Duquesa with its excellent port, wealth of attractions and abundance of properties for sale, it is an up-and-coming area with a thriving expat community.
Clearly, the more popular the destination, the higher the property price will be. For those wishing to explore the holiday rental market, it is useful to know that roughly 12 million tourists visit the Costa del Sol every year, and increasingly holidaymakers are choosing self-catering holiday villas and apartments over hotels. There are definitely lucrative commercial opportunities to be had here for holiday landlords.
The supply of long-term rentals has suffered as a result of more property owners choosing to short-term let their property to satisfy the growing demand for holiday lets. With less long-term rental supply available, this has pushed up the cost of monthly rents, which is bad news for tenants but excellent news for landlords. In short, whether you decide to go the holiday let route with the added bonus of being able to enjoy your property out of season, or whether you prefer long-term letting, the rental return on your investment is extremely favourable.
In terms of holiday activities for adults and children, Manilva is an excellent choice. Apart from the glorious beaches, there’s a wealth of choice including golf, watersports, waterparks, adventure parks, children’s camps and much more besides. Eating out is a joy – aside from many excellent Spanish restaurants, you’re spoilt for choice with a wealth of international cuisines to keep even the most discerning diner happy.
Infrastructure-wise, the Costa del Sol is well served largely as a result of its booming tourism industry, with plenty of entertainment, shopping and sporting facilities and good transport links too. The area between Malaga City and Fuengirola has the benefit of a fast trainline (cercanias) but anywhere else you will need to hire a car, catch a bus or take a taxi to get around.
The area between Malaga and Sotogrande has always been a holiday hotspot and as long as the sun carries on shining, Manilva and the Costa del Sol will continue to have the ability to cast a spell on foreign investors looking for sun, sea and a lifestyle that’s a world away from home.