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Investing in countryside properties in the inland areas of the Costa del Sol, especially around the Guadalhorce Valley, is an appealing option due to increasing tourism, affordable property prices, and the area's unique blend of natural beauty, availability of amenities and activities and accessibility.
The Tourism Market: Facts & Figures
The Costa del Sol continues to thrive as a tourism hotspot, with a record-breaking 14 million visitors in 2023, and predictions for 2024 remain optimistic due to a 13% increase in visitors in the first quarter alone. This influx has positively affected inland areas, as tourists look for more authentic experiences away from the coast, contributing to the high demand for rural accommodations. (See article by Euro Weekly News for more info.)
Property prices in the Guadalhorce Valley, which includes towns like Coín, Alhaurín el Grande, and Álora, remain relatively affordable compared to coastal areas. Villas in these towns typically range from around €250,000 to €500,000, depending on the property size, features, and proximity to amenities. Many of these properties appeal to international buyers and holiday rental investors due to their scenic surroundings and lower price points.
Tourist occupancy in the inland regions is strongest from May to October, with July and August being the busiest months. Occupancy rates during peak season reach nearly 90%, providing robust rental returns for property owners. The average rental cost for a villa accommodating a family or group is around €1,200 to €1,500 per week during high season, with rates lower during off-peak months. (See
Inland properties in the Costa del Sol can be a sound investment, offering both affordability and steady demand for holiday rentals, making them a profitable option for those looking to capitalise on the region's growing tourism sector
Things to Consider
When looking to buy a property in the inland areas of the Costa del Sol with the goal of renting it out to tourists, consider the following checklist to ensure your investment is both compliant and profitable:
1. Location and Accessibility
Proximity to Key Attractions: Check that the property is near popular tourist spots like national parks, hiking trails, or historic towns.
Transport Links: Ensure easy access to roads, airports, and public transport options, as accessibility will impact appeal and rental occupancy.
Neighbourhood Appeal: Assess the surrounding area for services such as shops, restaurants, and medical facilities, which add convenience for guests.
2. Property Compliance and Legal Requirements
Tourist Rental License (VUT): Ensure the property meets Andalusian legal requirements for holiday rentals, including securing a “Viviendas de Uso Turístico” (VUT) license.
Compliance with Local Regulations: Verify any restrictions on rentals in the area, as some municipalities have begun limiting tourist licenses or require properties to have separate entrances.
Size and Amenities Regulations: Note requirements such as minimum square footage per guest, sufficient bathrooms for capacity, and necessary amenities like fire safety equipment.
Find out more about the latest changes to the Tourism License in Andalusia.
3. Property Condition and Features
Maintenance Needs: Inspect the property for structural or cosmetic work that may be needed, as older rural homes may require renovations.
Guest Comfort Amenities: Ensure the property has essentials like air conditioning, heating, and modern appliances. Countryside properties benefit from additional perks like pools, outdoor dining spaces, or terraces with views.
Energy Efficiency: Energy costs in rural areas can be high, so assess if the property has good insulation, solar panels, or other energy-efficient features.
4. Financial Considerations
Rental Yield Potential: Estimate weekly rental prices based on similar properties in the area, especially during peak season, when rates can reach €1,200-€1,500 per week.
Seasonal Occupancy Rates: Research average occupancy during peak (June-August) and off-peak seasons to get an accurate forecast of annual income.
Insurance Costs: Check insurance rates for rural properties, as they can be higher due to factors like isolation or fire risk.
5. Marketing and Appeal to Tourists
Authentic Rural Experience: Properties in traditional Andalusian style with rustic features (exposed beams, courtyards) often appeal to tourists seeking an authentic experience.
Outdoor Amenities: Demand for countryside rentals often depends on outdoor facilities like BBQ areas, private gardens, or hiking trails, which can be big draws.
Proximity to Events and Festivals: Properties near towns with annual festivals or events can attract higher rental rates during these times.
6. Operational Considerations for Rentals
Property Management: If you’re not local, plan for a reliable property management service to handle guest check-ins, maintenance, and cleaning.
24-Hour Assistance for Guests: Consider arranging a 24-hour contact for guests, as this may be a legal requirement in some areas.
Legal and Tax Implications: Familiarise yourself with the tax obligations for rental income in Spain and consult a local tax adviser if needed.
7. Future Potential and Resale Value
Local Development Plans: Research if there are future development projects nearby, such as new transport links or tourist facilities, which can increase the property’s value.
Market Trends: Check if the area is trending upwards in popularity among tourists or investors to ensure the potential for long-term appreciation.
Your Local Trusted Estate Agent
Here at Mediterranean Homes, we know all our vendors and their properties inside out so if you are looking for a holiday rental investment property in the Spanish countryside, we believe we are the best estate agents to help you find the ideal investment property.
We're always at the other end of the phone if you ever want to have a chat to us about investing in this beautiful area of Spain! Get in touch
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