Free Report · 2025 Edition
Costa del Sol Property
Investment Report 2025
Data-driven insights into Fuengirola's property market. Rental yields, price trends and the best areas to invest in 2025.
Market Snapshot
Key Investment Numbers
Fuengirola continues to outperform many European coastal markets. Here are the headline figures driving investor interest.
6.2%
Average Rental Yield
Fuengirola’s short-term rental yields outperform most European coastal markets, with prime locations reaching 7–8%.
+8.3%
Annual Price Growth
Property prices in Fuengirola rose 8.3% year-on-year in 2024, driven by sustained international demand and limited new supply.
€2,450
Avg. Price per m²
Significantly below Marbella (€4,200/m²) and comparable European coastal resorts, offering excellent value for investors.
85%
Occupancy Rate
Tourist apartments in Fuengirola average 85% occupancy across the year, with peak season reaching near 100%.
The Opportunity
Why Invest in Fuengirola?
Fuengirola sits in a sweet spot for property investors: strong tourist demand, a large resident expat community that rents year-round, and prices that remain well below neighbouring Marbella.
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, Fuengirola offers a compelling proposition.
+47%
Property price growth in Fuengirola since 2019
Inside the Report
What You'll Learn
- 1Executive summary and market overview
- 2Fuengirola vs. Marbella vs. Benalmádena — 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 FAQs
Frequently Asked Questions
The questions we hear most often from investors considering the Fuengirola and Costa del Sol property market.
Why invest in Fuengirola property rather than Marbella?
Fuengirola sits in a sweet spot for investors: strong tourist demand, a large resident expat community that rents year-round, and prices that remain well below neighbouring Marbella. This combination of lower entry costs and steady rental demand makes it an attractive alternative to pricier coastal towns.
What kind of rental yields can investors expect in Fuengirola?
Short-term rental yields in Fuengirola compare favourably with many European coastal markets, with prime, well-located properties performing best. Actual returns depend on the property, location, licensing, and management approach, all of which our report covers in detail.
Do I need a licence for short-term holiday rentals?
Short-term tourist rentals in Andalusia require registration and a tourist licence, and regulation is becoming more structured over time. Securing a licensed property in a prime location can command premium yields, and early movers benefit from reduced future competition.
What taxes apply to non-resident property owners in Spain?
Non-resident owners are subject to taxes such as annual property tax (IBI), non-resident income tax, and capital gains tax on sale, alongside community fees for shared developments. Because individual circumstances vary, the report includes a dedicated tax guide and we recommend professional advice.
Can buying property in Spain lead to residency?
Significant property investment has historically been a route to Spanish residency for non-EU buyers, though programme rules can change over time. Our report outlines the current requirements and process so you can assess whether it fits your situation.
Is now a good time to invest in the Costa del Sol?
The Costa del Sol continues to attract sustained international demand against a backdrop of limited new supply, which supports both rental occupancy and long-term value. Planned infrastructure investment in the region is also expected to support property values over the coming years.
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