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The Rental Market on the Costa del Sol in 2025 Trends and Insights

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Rising Demand for Rentals

Over the last few years, demand for rental properties on the Costa del Sol has surged. The main drivers include:

  • Expats relocating for lifestyle and work: Many professionals and digital nomads are choosing Málaga, Marbella, and Estepona for their quality of life and growing tech hubs.
  • Tourism recovery: International visitor numbers are back to pre-pandemic levels, boosting demand for short-term holiday rentals.
  • Limited supply of long-term rentals: With many owners preferring to focus on lucrative holiday lets, the availability of long-term rental apartments and houses has decreased, driving prices up.

Long-Term Rentals on the Costa del Sol

  • Average rental prices in 2025:
  • One-bedroom apartment in Málaga city: €900–€1,200/month.
  • Two-bedroom apartment in Marbella or Estepona: €1,500–€2,200/month.
  • Villas in Sotogrande or Benahavís: €3,000–€6,000/month.

➡️ Trend: Many tenants struggle to find affordable long-term rental properties in coastal hotspots. Inland towns such as Alhaurín el Grande, Mijas Pueblo, and Coin offer better value, with apartments available from €700–€900 per month.

Holiday Rentals and Short-Term Lets

The holiday rental market in Marbella, Fuengirola, and Benalmádena remains strong thanks to steady tourism and platforms like Airbnb and Booking.com.

  • High season (June–August): Holiday apartments rent for €1,000–€2,500 per week, depending on location and amenities.
  • Low season: Prices drop by 30–50%, making winter months more attractive for long-stay tourists and digital nomads.

➡️ Trend: The Spanish government continues to tighten regulations around short-term rentals, especially in Málaga city, where rental licences are strictly controlled. Investors should ensure they comply with local laws before listing a property.

Rental Yields and Investment Potential

Rental yields on the Costa del Sol remain attractive compared to many other European destinations:

  • Holiday rentals: Can generate 6–8% yields annually in prime locations such as Marbella, Puerto Banús, and Mijas Costa.
  • Long-term rentals: Provide more stable but slightly lower returns, around 3–5%, with less management hassle.

➡️ Investor tip: Properties close to the beach, golf courses, or in gated communities with pools tend to rent faster and at higher rates.

Key Challenges in the Rental Market

  • Regulatory changes: Local authorities are imposing stricter licensing rules for holiday lets.
  • High competition: Premium areas like Marbella and Estepona see high demand but also higher purchase prices.
  • Tenant security: For long-term rentals, Spanish tenancy laws can sometimes favor tenants, so landlords should use proper contracts and legal advice.

Final Thoughts

The Costa del Sol rental market in 2025 is vibrant but competitive. Demand for both holiday rentals and long-term accommodation is strong, driven by tourism, digital nomads, and lifestyle relocations.

For investors, short-term rentals offer higher yields but come with stricter regulation and seasonal fluctuations, while long-term rentals provide steady income and less management stress. For renters, moving inland or outside the main tourist hubs can help find better value.

Whether you’re an investor looking to maximise returns, or a tenant searching for your next home, understanding the Costa del Sol rental market trends will help you make smarter decisions.