In the summer of 2025, the Costa del Sol will remain one of the most popular European property markets, especially for Hungarian investors. Brilliant sunshine, excellent climate, lively tourism and stable economic growth all combine to make this an ideal place to buy property. In this article, we look at why it is worth investing in Costa del Sol, what types of property are available and how to maximise returns in a legally sound way.
Exceptional legal and economic security
Spain offers a secure legal environment for foreign investors - with a stable contractual regime and transparent taxation. As a member of the euro zone, your investment is euro-based, so you are not affected by fluctuations in the exchange rate of the forint . In addition, the Golden Visa scheme (€500,000 worth of property purchases) remains an attractive option for non-EU investors.
Tourism + expat community = guaranteed rental income
The region is visited by 12-14 million tourists a year, and there is a growing expat, digital nomad, snowbird population - who are also renting property on a longer-term basis.
- Short-term rentals (Airbnb, Booking) can generate significant returns during the peak summer season.
- Long-term rental market (ex-pats, families) provides a stable income all year round.
Outstanding dual (hybrid) model: premium short term rentals in summer, peace and long term rentals in winter - so a wide spectrum of income can be expected.
Strong price growth, future-oriented regions
In the first quarter of 2025, annual house price growth on the Costa del Sol was in the range of 7-9%, with the luxury segment growing by up to over 20%.
- Golden Triangle (Marbella - Estepona - Benahavís): luxury property market +20% in 2024, with €3.2 billion invested.
- Prime areas - Marbella: ~ €5 000/m², up to €30 000/m² in prime locations.
Awesome growth rates for the luxury and urban segment, while middle class and beachfront prices are more moderate but steadily rising.
Excellent infrastructure and transport
- Málaga airport is the third busiest in the country, with 25 million passengers in 2024 (+11.5%).
- Motorways (A-7, AP-7) and AVE provide fast connections to Madrid and other cities.
- Local public transport under development - e.g. Marbella-Estepona line, Málaga metro extension .
This logistical backdrop is attracting investors and is leading to continued urbanisation.
Excellent quality of life, services and experiences
Weather and health
- 300 days of sunshine a year, Mediterranean climate, mild winters, warm summers.
- High quality health care with public hospitals and private clinics.
Leisure activities
More than 70 golf courses, sea, paragliding, hiking, winter sports in the Sierra Nevada.
Culture and local life
Museums (Picasso, Centre Pompidou), gastronomy, festivals - a lively weekday.
Variety of property types for all purposes
| Region / Type | Featured | Price/demand |
|---|---|---|
| Marbella (Golden Mile, Puerto Banús) | Luxury, high-end | 1-25 M€; ~5 400 €/m²; +3-5 % increase |
| Estepona / Mijas / Fuengirola | Mid-luxury | 300 k-5 M€; developing supply |
| Benahavís, La Zagaleta | Gated elite | 5-30 M€; extreme luxury |
| Málaga City | Cultural, tech centre | ~3 830 €/m²; +11,6 % growth |
| Sotogrande | Marina, sports | 800 k-10 M€; premium lifestyle |
Tax breaks and financial planning
- Golden Visa scheme below €500 000 still temporarily available.
- Beckham Law: reduced 24% RSV tax on income for expats.
- Transaction costs for buying Spanish property approx. 10-12% over and above the price.
- It is recommended to use a local lawyer and accountant to help you, while following the rules.
Risks and what to look out for
- Regulatory changes - Golden Visa may change, but is currently operating on a temporary basis.
- Short-term rental permits - many resorts regulate short-term tourist rentals; it is advisable to use local professional management.
- Market overheating in luxury - stable demand, but it is worth bearing in mind the issue of sustainable development.
- Portfolio diversification - it makes sense to have a mixed real estate investment: city + beach + luxury/standard to reduce risk tied to one region.
Step by step investment guide
Target definition
What is the priority: quick rental yield, capital appreciation or lifestyle?
Choosing a region
Luxury vs. mid-range; Marbella, Málaga, Estepona, etc.
Putting together a local team
Estate agent, lawyer, accountant - also familiar with Spanish law.
Calculation of costs
Purchase + taxes + maintenance + rental management + financing.
Physical walk-through
Travel out, get to know the living environment, infrastructure, guest requirements.
Financing
Borrowing vs. buying cash - compare interest rates, repayments.
Contract, transfer, subsequent management
Careful contracting, professional short/long term expenditure management.
Summary - Costa del Sol in 2025
The Costa del Sol is currently the golden axis of sunshine, quality of life, infrastructure and financial benefits. The Spanish real estate market is stable and predictable from an investor's point of view, while international demand - especially in the luxury and rental segments - continues to grow.
- Annual price growth: 7-20%, even higher in luxury.
- Tourism + expat demand - reliable rental background.
- Golden Triangle region: luxury segment, prestige - ~ €4-5 000/m².
- Urbanised spaces (Málaga) combined with tech/global trends.
This region is an excellent fit for the Hungarian investor looking for euro-based diversification, long-term returns or quality of life improvements. It is easy to complement the results achieved in the Hungarian market with a Spanish portfolio - everyone will find the right balance.