Many investors have realized how profitable it can be to rent out property in Marbella. It's a beautiful location with unique scenery, modern amenities and a superb selection of luxury villas and apartments. There are currently many incentives to encourage the Malaga property market to make a full recovery following the disruption of COVID-19. It could be the perfect time to invest in property in Costa del Sol and earn a very profitable income from renting it out.
When you invest in property, you can usually expect a much higher return than in saving money in the bank. In Malaga, there is approximately a 5.8% ROI on real estate. The luxury villas and apartments in Marbella retain their investment potential, providing you with reliable capital growth. When you purchase property to rent out, you can expect a gross yield of at least 7%. According to the Ministry of Development, short-term property rentals can increase as much as 11%. When you intend to earn an income from property renting, Marbella is a perfect choice.
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The Costa del Sol has been one of the most popular tourist destinations for many years. More than ten million people visited Andalucia in 2016. By 2019, that figure had increased to almost thirteen million. During those years, only 5.2 million tourists chose to spend their holiday in hotel accommodation. You should always be able to find suitable tenants. The majority of families prefer to rent privately. They enjoy the relaxation and freedom of looking after themselves in a luxury villa or apartment. It is often less expensive to rent a villa for two weeks than to stay in a luxury hotel. But you can still earn a substantial income from holiday rentals.
It's possible to earn a good income from renting out your property at any time of the year in Marbella. The summer months are usually ideal for short-term lets as tourists arrive for their annual holidays. The number of visitors to Costa del Sol decreases through the winter. However, there are still many people seeking long-term rentals while they escape the cold weather of their home countries. You can usually expect to make four times as much profit during the summer as the winter. In general, investors believe they can often meet their property's maintenance and mortgage expenditure through the rental income they earn during the summer.
In recent years, foreign investment in Marbella has increased. Up to half of all the property sales in Costa del Sol are from foreign investment. If you are from outside Spain, you will find the laws and procedure of purchasing property very easy to understand. There are many fixed term mortgages available. You can usually secure a mortgage that is worth up to 60% of the property's price. People who are Spanish nationals usually have an additional 20%.
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Purchasing a luxury villa or apartment in Marbella has enormous potential for gaining you a very good profit. The coastline is unique and attracts many tourists who want to enjoy the sunny weather. You should always find enough tenants wanting to rent. Your property should also increase in value every year. At Questates, we are experts at locating attractive, luxury villas and apartments for investors who want to earn a profit from renting out their properties. We can help you find the best locations where you can gain a high return.