Architect choice. Best properties Costa del Sol property investments 2026

OVERVIEW.

As we turn the corner into a new year, a question very often asked "Will the Costa del Sol property market still hold its place as a hot investment . So lets take a look how it is viewed by independent investment consultancies on a worldwide basis.

Without question the Costa del Sol property is still considered a good investment due to steady appreciation, strong international demand, a robust tourism sector for rental income, and high quality of life amenities. but requires careful market research to avoid past pitfalls experienced in some regions, and focus on areas like Marbella, Estepona, Benahavís and Mijas.

Key Reasons that makes It a Good Investment

• Strong Appreciation: Steady price growth, with some areas seeing 7-10%+ yearly increases, driven by international appeal and lifestyle factors.

• High Rental Yields: Popularity for holiday rentals offers attractive gross yields (7-14%), with strong net returns in high-demand areas like Estepona and Mijas.

• International Demand: Attracts buyers from Northern Europe, North America, and beyond, boosting the market.

• Quality of Life: Year-round sunshine, golf, beaches, international schools, and good healthcare make it a top choice for relocation and lifestyle buyers.

• Infrastructure & Development: Improved transport, new services, and modern, energy-efficient developments (especially luxury and off-plan) enhance long-term value.

Getting Started to achieve a top investment.

So is it as simple as walking into a sales office and signing up for the next available apartment or villa? well not quite.  You require an in-depth knowledge of trends, what are the hotspots, the back story on the area, who's booking, nationalities, their requirements, are the local services suitable for quality needs, furnishing and most important, how to capture re-bookings. In-short you require professional help and Costa1.com one of the longest standing companies in the region, with a lifetime of operating in this market.

Driven by popularity Costa del Sol has over the last two or three years seen an explosion of agencies setting up as so called property investment experts, which is a little worrying, as experience in this business is all important.

What to choose, New Build or resale.

Most people default to a resale, due to the fact it exists and normally located in a mature and established area. Agents also like resales as they are a one of a kind, which helps in closing the sale. But when purchasing for Investment we must buy with that in mind. So let's take a look

All property starts it life as a new-build. The constructer / developer are professional organisations and will ensure they go to the market at the correct market price, or their promotion may stall, these set prices are the benchmark for the whole regional market and controlled.

• Modern & Efficient: Latest tech, layouts, appliances, superior insulation, and energy efficiency (lower bills).

• Low Maintenance: Everything is new, with warranties, meaning fewer repairs in the first few years.

• Customisation: Options to personalize finishes and designs with some builders.

• Safety: Built to current codes with modern safety features.

Not so with a resale. When a private owner goes to the market, they are generally looking for a premium above the base bench price, seeing that as their profit, normally set higher by the agency to see what they can get with offers. Further more, most resales require some form of upgrading or modernising. I have seen buyers of resales spend a third of the purchase price on modernisation.

• Maintenance: Older systems (HVAC, plumbing, roof) may need costly replacements.

• Less Efficient: Poorer energy performance compared to new builds.

• Renovations: May require immediate cosmetic or structural updates.

• Competition: Can face multiple-offer situations which forces prices up. 

As an architect, I spend a great part of my working time advising buyers of resales on structural matters post purchase and can state most resale purchases will follow with unsuspected expenditure.

If you are looking to invest in a property on the Costa del Sol, do it safely with Costa1.com. Check out my site

Thanks for looking

Brian Tones

Architect

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