Country in Focus – Costa del Sol
Country in Focus
Costa del Sol – A Top Destination for Estonian Real Estate Investors
With over 300 days of sunshine each year, golden beaches stretching for miles, and a cosmopolitan atmosphere, Spain’s Costa del Sol has long been a playground for the world’s affluent. In recent years, however, it has also become a serious hotspot for savvy investors from Northern Europe — including Estonia.
In 2024, Estonian investment fund Novira, in partnership with Lithuania’s Evernord, made headlines by injecting €34 million into a luxury property development in Marbella’s exclusive Cascada de Camaján. This move reflects a wider trend: the area’s “Golden Triangle” — Marbella, Estepona, and Benahavís — saw luxury real estate investment surge by 20%, totaling more than €3.2 billion.
Why Costa del Sol
Beyond the numbers, the Costa del Sol offers a rare combination of lifestyle and stability.
Quality of Life: Picturesque Andalusian towns, a vibrant dining scene, and cultural treasures such as Málaga’s Picasso Museum and Estepona’s botanical gardens create an environment that attracts both long-term residents and seasonal visitors.
World-Class Amenities: International schools, private medical facilities, championship golf courses, and a modern infrastructure — including Málaga Airport’s extensive European connections — make the region an easy choice for families and high-net-worth individuals.
Year-Round Demand: Thanks to its mild winters, the rental market stays active outside peak summer months, a key factor in generating consistent returns.
Numbers that speak volumes
Tourist rentals currently yield gross returns of 7–14%, with net returns between 3–6%. In Q1 2025 alone, property prices in the Malaga Coast holiday home segment rose 14.3% year-on-year, with overall prices in the region climbing 12%.
The “work-from-anywhere” movement has added fuel to the fire, with Northern Europeans — especially from colder climates — seeking longer-term stays. The introduction of Spain’s digital nomad visa has only widened the pool of potential tenants.
Emerging opportunities
While the Golden Triangle remains the crown jewel, other areas are catching investor attention:
Mijas – Still relatively affordable, with strong rental potential.
Casares – A hidden gem offering luxury at a lower entry point.
Fuengirola – Popular with younger expats, benefiting from improved transport links.
Sustainability is also shaping the market. Eco-certified villas and energy-efficient apartments are becoming not just a preference but a requirement for high-end buyers — and properties meeting these standards often command premium prices.
The outlook
Analysts expect steady growth until at least 2027, driven by limited land availability, ongoing infrastructure improvements, and continued global demand for Mediterranean living. For Estonian investors, the Costa del Sol is more than a sun-soaked getaway — it’s a strategic asset that blends lifestyle enjoyment with strong financial returns.
Whether your goal is to secure a vacation property, tap into the thriving short-term rental market, or hold a long-term appreciating asset, the Costa del Sol remains one of Europe’s most compelling investment destinations.
