Holiday rental investments.
We are seeing a resurgence in the rental market across Spain and this makes it an excellent time to purchase investment properties for long or short-term rental. Idealista, a research company that publishes data on the national property market reports that across Spain, rental prices have increased by 20.9% in the past year. This is excellent news for landlords. Add to this a decrease in the number of properties available for rent and you have a very profitable situation.
As idealista pointed out in its report on the Spanish rental market, during the years 2007 – 2013, many owners rented out their properties, but in the past twelve months, “Out of every ten rental leases that expired last year, six of those properties are now being put up for sale.” Hence the decrease in available rentals and yet there is a growing number of people arriving in Marbella who prefer to rent rather than buy.
However, there are two things to consider when you are looking for an investment rental property: do you want to focus on long-term rentals or holiday rentals? The advantage of getting into the holiday rental sector is twofold: you will make far greater profits with short-term holiday lets and it is a small business that you can build on. On the other hand, if you prefer a less hands-on approach to owning a rental property then the long-term option may suit you better.
If you are buying a property with the intention of maximising your profits by focusing on the holiday market, then we would suggest you consider location as a priority. A frontline golf property is perfect for golfers, the beachfront for families and those who want easy access to watersports, proximity to shopping, restaurants and nightlife for all ages, but especially younger holiday makers. In addition, some areas of Marbella are considered more desirable than others, but, if your budget doesn’t stretch to the top-end of the market, there are plenty of ideal holiday rental properties in the mid-range that will attract a steady flow of visitors. Apartments in urbanisations with one or more swimming pools, including a kids’ pool, are always in demand with families.
If you’re considering investing in a rental property, whether for short or long-term rentals, please contact us so that we can show you some of the best properties in Marbella for this purpose.
