The Costa del Sol has long been popular with visitors and ex-pats alike, all attracted by the sun, the sea, and the sangria. Offering a coastline that stretches for 159 km, warm and welcoming people, and 325 days of sunshine every year, the Costa del Sol is appealing for so many reasons. But is Costa del Sol a good investment today? If you’re thinking of buying property in Spain then is the Costa del Sol still the right place for you? I think the answer to all of these questions is yes! And to prove it, here are five reasons to invest in property on the Costa del Sol:
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The Costa del Sol Has a Thriving Ex-Pat Community
The Costa del Sol has a thriving ex-pat community. This means that it will be easy to integrate within the community and seek out support as and when you need it. If you are not a fluent Spanish speaker then living in the Costa del Sol is also advantageous from a practical point of view: it is much easier to find English speaking doctors, hospital staff, lawyers, and other vital services here than it is in other, more remote, parts of Spain. For families with children there are an abundance of highly regarded schools offering lessons in both English and Spanish, enabling you to give you children a strong foundation in both languages. From a purely practical point of view, then, it’s the best place to pick.
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The Costa del Sol is Incredibly Popular with Tourists
If you don’t plan to make a permanent move to Spain, then you may be looking for a property that you can spend time in and the let out when you’re not using it. The Costa del Sol is one of the most popular tourist destinations in the world and each year an average of 13 million tourists visit the region. As the world recovers from the impact of the coronavirus pandemic, visitor numbers are expected to surge, potentially to beyond this level, presenting a huge potential market for those with rental properties. When the average gross rental return is between 5.00% and 7% on long term rentals with the short term rentals command much greater rates at around 12% -16%. For this reason, if you’re looking to make a buy-to-let investment then there is no better place to look than the Costa del Sol.
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Costa del Sol property sees the biggest uptick
Statistics released in early September by Fotocasa show that property values have soared throughout the country. But nowhere more so than the Costa del Sol. This part of southern Spain saw an increase of 11.5% in real estate prices in the 12 months to August.
The figure is the highest in the country, although property in the Balearics and Alicante saw similarly substantial jumps. Prices on the islands and Costa Blanca rose by 10.9% and 10.7%, respectively.
In terms of square metre prices, the latest increase takes the average to €2,682 on the Costa del Sol. As a result, its property is the sixth most expensive in the country.
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The Costa del Sol Offers the Best of Both Worlds
Whilst the Costa del Sol is perhaps most famous for its beaches, the region also offers an abundance of traditional white villages set away from the coast in rural, mountain settings. This means that, if you choose the invest in property in the Costa del Sol, you will get the best of both worlds. If you love the hustle and bustle of the coast you will find an abundance of apartments and villas to suit your needs. If you prefer authentic Spanish living in a rural location then look for a property in a less developed location. Either way, you can almost always be on the beach, or at the airport, in less than an hour!
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Property Taxes Are Cheaper in the Costa del Sol
The Andalusian government has approved a decree that includes a reduction in the Transfer Tax (the tax paid on the purchase and sale of second-hand homes) to a flat rate of 7%. This is the lowest rate that a regional government can fix their transfer tax rate at, making the tax rate in Andalusia one of the lowest in the country. In real terms, this will means that your budget will stretch a little further: without a huge tax bill to pay, you will be left with more money to spend on your property purchase, if you choose to buy in the Costa del Sol. Costa del Sol investments will be so much easier thanks to this change.
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The Costa del Sol is a Great Place to Live!
Add to the above a predominately sunny climate and highly sought-after beaches and you will cease to wonder why the Costa del Sol is attractive to so many. The people, the beaches, the food…there are so many reasons why people love it here. So many people choose to visit for a vacation, and then never want to leave. If this applies to you then there really is no better time to invest in property on the Costa del Sol.