Buying property in Marbella for investment? Everything you need to know in 2024

Marbella is often called the jewel of the Costa del Sol, which is probably why it has become a movie destination and a playground for celebrities.

As a favorite spot for tourists and foreign buyers, there is always a high demand for rental properties, which usually translates into the potential for high rental yields on your investment.

If you have the money, it’s important to understand what buying a property in Marbella as a foreigner involves. Could there be a better way to use your cash and get more from your investment?

Let’s find out.

What’s the property market in Marbella?

As of May 2024, the average price for residential properties in Marbella was €4,969 per m², marking a 13.47% rise from May 2023's €4,379 per m².

The Milla de Oro area of Marbella had the highest asking price for properties for sale, at €5,951 per m². On the other hand, the lowest price was found in the Las Chapas area, averaging €4,272 per m².

Even though property prices might seem higher than in other Spanish cities, the sale of luxury properties in 2023 was stronger than the year before. Some agencies reported an increase in sales of up to 20% in the highest end of the market.

What is the average cost of living in Marbella?

Marbella’s prices are generally more affordable than Paris, London, or Amsterdam. Consumer prices, including property prices, are lower in Marbella.

Here’s a brief overview of basic costs to help you understand the market:

Overall, you would need around €4,500 in Marbella to maintain the same standard of living that you can have with €5,800 in Amsterdam or €7,200 in London per month.

Best place to buy property in Marbella

Marbella covers 27 km of coastline, making it the largest resort on the Costa del Sol. The city offers five areas to choose from, and the best part is that you can find many properties that offer a high degree of privacy.

Milla de Oro: the pinnacle of luxurious properties

Average price per m²: €5,951

Properties in Milla de Oro typically include private beachfront penthouses, 5-star resorts, and exclusive beach clubs. The area also offers numerous amenities, like sports centers, galleries, boutique stores, and Michelin-starred restaurants.

Centro: everything within walking distance

Average price per m²: €4,453

As expected, everything is within walking distance in Central Marbella. Most properties in this area are townhouses and apartments.

Las Chapas: added privacy

Average price per m²: €4,272

Las Chapas offers spacious coastal villa plots, surrounded by lush greenery for added privacy. Many properties are fully updated or rebuilt, while others present great opportunities for renovation.

Nueva Andalucía: the largest neighborhood in Marbella

Average price per m²: €5,377

This area has plenty of villas and apartments based on traditional Andalusian architecture and design.

Nueva Andalucía has a very low construction density, creating a sense of open space everywhere you go.

San Pedro de Alcántara: more affordable properties

Average price per m²: €4,525

San Pedro is highly sought after by national and foreign homebuyers, offering a wide selection of villas, townhouses, and apartments in various styles, sizes, and price ranges.

What are the costs of buying a property in Marbella for investment?

In Spain, property taxes typically depend on the type of property you choose, whether it’s new or a resale from an individual.

If you buy your property with a mortgage, you need to account for 10-12% in taxes for purchase and sale expenses.

Here are some expected costs that you need to consider when buying property in Marbella:

• transfer taxes for resale properties: 6-10% of the purchase price 
• value added tax for new properties: 10% of the purchase price
• stamp duty (AJD) for new properties: 0,5-2% of the purchase price
• notary fee: around €700
• registration fee: around €350
• consulting fees: around €450
• property appraisal: €300-€600

Can you maximize your investment potential with a mortgage?

While buying a property with cash might be quicker, a mortgage frees up capital for other investments and offers potential tax benefits from interest deductions.

For a quick simulation of how much you can borrow based on your financial profile, check out Homevest. This digital service simplifies the application process, allowing you to receive multiple mortgage offers from top Spanish banks.

What are your mortgage options for buying property in Marbella?

While most Spanish lenders offering financing to non-residents serve all of Spain, some banks focus exclusively on specific regions. Cajasur is one such bank that tailors its mortgage offers to foreigners interested in buying properties on the Costa del Sol.

Cajasur provides financing up to 70% of the property value, with a maximum loan of 1,000,000 EUR.

"Opting for Cajasur's insurance could cut your rate, save money, and secure your property. Keep in mind that having income in a stable currency like the EUR, USD, SEK, or NOK opens up a wider range of mortgage choices. A more volatile currency can limit your options" says Maria Isabel Morillo, Deputy Branch Manager at Cajasur.

However, if you plan to rent out your property, be aware of a potential drawback: Cajasur focuses on first-home buyers who intend to use the property themselves. They also don’t offer mortgages via a Sociedad Patrimonial or any other corporate entity.

There are other options available on the market, such as Sabadell, Santander, UCI, or HolaBank by Caixa. 

Choose the best mortgage that aligns with your needs. 

How Homevest can help you secure the best deal for your property in Marbella?

Using Homevest, customers can consolidate their credit files and upload all necessary documents in one place, allowing them to request and compare bank offers more efficiently. The digital platform connects them with brokers and banks, making it easy to track their mortgage progress.

After applying through Homevest to explore his available options, a customer from France received four offers from top Spanish banks, including Sabadell, Santander, Cajasur, and Unicaja.

The first offer, featuring an effective rate of 5.61%, was received within four days. 

The most competitive offer, with an effective rate of 4.96%, was secured after 19 days from Unicaja, allowing the customer to finalize a 510,000 EUR mixed interest rate mortgage for his property in Marbella.

Is Marbella a good real estate investment?

Marbella is a coastal city with a strong property market and a healthy growth rate; it has survived economic crises multiple times and has come out thriving. 

Why does it work?

• a great location to escape the hustle of the city and connect with nature
• centrally located on the Costa del Sol and well-connected with the rest of the world (it will take you less than an hour to drive to the international airports of Malaga and Gibraltar, which connect you to over 150 countries)
• international and safe environment (the area offers over 30 international colleges and schools, including German, American, Swedish, French, Finish, and Norwegian)
• a variety of high-quality properties are available

Add to these reasons the sunny weather that stays warm throughout the year, making Marbella an even more desirable location to invest in.

Sources used and checked in May 2024: 

1. Housing prices in Marbella
2. The sale of luxury homes in Spain
3. Property prices Marbella vs. Amsterdam
4. Property prices Marbella vs Paris
5. Property prices Marbella vs London
6. Cost of living Amsterdam vs Marbella
7. The best residential areas in Marbella
8. Marbella Highlights

We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.