Investment opportunities on the Costa del Sol in Spain.
Is it the best time to invest in Nerja? Which is the best town on the Costa del Sol to buy a property? Is it better to buy in an inland town in Malaga? What are the investment options on the Costa del Sol in general?
International investors or people looking to invest in Spain find investing in housing on the Costa del Sol to be a very good option, highlighting the growing demand in municipalities such as Málaga, Estepona, Marbella, Benahavís, Fuengirola, Mijas, Nerja and Vélez-Málaga.
But we must not forget the inland towns in the Axarquia region and the mountains of Malaga.
Currently, Malaga is positioned as one of the most attractive cities, with a 3.4% increase in the price per square meter, higher than the national average. Each town has its own particularities; for example, Marbella is known for its luxury, while Estepona and Mijas offer a more relaxed atmosphere. Nerja stands out for its charm and authenticity, being an ideal destination for those seeking tranquility.
What does Nerja offer?
Nerja is a municipality on the Eastern Costa del Sol, famous for its natural beauty, golden sandy beaches and hidden coves. It is known for having been the setting for the television series “Verano Azul”. Unlike other coastal towns, Nerja has preserved its authenticity and charm, avoiding uncontrolled urbanization. Burriana Beach is one of the most popular, along with others such as Calahonda and El Playazo.
Is it good to invest in Nerja?
Investing in Nerja can be a good option for those looking for a quiet lifestyle and a property in a picturesque setting. The real estate market in Nerja has shown stability, and its tourist appeal can generate holiday rental opportunities, which can result in good returns. But all this can change if there is a change in the legislation on holiday rentals in Spain. This is why we recommend being cautious before investing in properties to make money with Airbnb or Booking.com
Are investments in Nerja profitable?
It all depends on the money spent on the investment. If you have bought an apartment for €90,000 and you are renting it for €1,500 a month. This investment is profitable.
Investing in an Airbnb in Nerja
It is a good option, but you have to do the math and look at the cost of your property and the estimated profits. There are people who are not interested in buying a property and making it profitable all summer. Keep in mind that Airbnbs can be profitable in the summer. But from October to June there are many empty Airbnbs. And it is difficult to make a property profitable by renting it out for only two months a year.
Buying a property to rent it out.
If you are looking for tranquillity, peace of mind and a constant annual return, you can rent your property for a long period of time. Renting a long-term apartment in Nerja will be easy for you, as demand is high.
Investing in quality of life
Is Nerja a good place to live? Does Nerja have quality of life? Is it stressful to live in the south of Spain? If you are looking to invest in quality of life. In your life. This is a good option. Life in Nerja is relaxed and community-focused, with a welcoming atmosphere and a strong sense of tradition. The town offers a good quality of life, with essential services, an interesting gastronomic offer and cultural activities, making it an attractive place for both residents and tourists.
Setting up a Business in Nerja
In Nerja, there are opportunities to acquire tourism-related businesses, such as restaurants, bars and accommodation. These investments can be profitable due to the constant flow of tourists throughout the year. But the “winter” factor must be taken into account. Nerja inWinter is different. There is not as much tourism as in summer. And businesses dedicated to tourism close or stop until the new season.
Businesses that work in Nerja
There are many businesses or companies that are opening on the Costa del Sol. Here we give you some businesses that can work well in Nerja or in any tourist town on the Costa del Sol.:
Opening a Restaurant in Nerja
- What it does: It offers typical dishes from the region, such as fresh fish, tapas and paellas. It attracts tourists looking for authentic gastronomic experiences.
- Summer benefits: During the high season, it can generate significant income, especially with outdoor terraces.
Tourist apartment rental
- What it does: Offers temporary accommodation to tourists in private properties.
- Benefits of apartments: Rental prices can increase considerably in the summer, generating high income per week. Benefits can start from 500€/week
Outdoor tours and activities
- What it does: It organizes hiking, cycling or water sports excursions (kayaking, snorkeling). In Nerja there are beautiful beaches to organize this type of tours and excursions.
- How much you earn: Tours can easily earn from €10 to €20 per person. Kayak rental from €25 to €35 per kayak.
Local souvenir and craft shops:
- What it does: Sells souvenirs, crafts and local products to tourists.
- Summer Benefits: Sales increase in summer, and a lot of money is made, as all the tourists look to take home a souvenir of their trip.
Language school or Spanish classes
- What it does: Offers Spanish classes for tourists who want to learn the language during their stay.
- How much Earn money with a school: Intensive courses can attract many students, generating additional income. Language schools work very well in the summer, with many students taking advantage of the summer to learn Spanish or study English. Courses usually cost from €100 per week.
Tourist transportation service (taxis, transfers):
- What it does: Offers transportation services from the airport, excursions and local transfers.
- How much does a taxi driver earn: Taxi or transfer drivers can earn between €3000 and €6000 per month in summer.
Beach bar or chiringuito:
- What it does: Offers drinks, tapas and food in a relaxed atmosphere by the beach.
- Benefits: Beach bars and restaurants with a terrace or beachfront can make a lot of money. They are very profitable businesses. Keep in mind that they can have more than 100 diners a day with an expense of €30 per person.
Bike and scooter rental shop:
- What it does: Rents out bikes, scooters and other means of transport to explore the area.
- Benefits: You can earn from €20 to €30 per bike rental in the summer.
Spa and wellness:
- What it does: It offers spa treatments, massages and beauty services.
- Benefits: Spas and wellness sessions generate earnings of between €15 and €50 per session. session.
Travel and tourism agency:
- What it does: It organizes tourist packages, excursions and activities for tourists.
- Summer generation: By offering personalized experiences, you can attract a large number of customers, generating income through commissions and service fees. Agencies earn commissions from booking apartments, hotels, taxis, tours and many tourist services. Commissions can be as high as 5% of the total sale.
These businesses can be tailored and diversified to the needs and preferences of the tourist market, which can maximise their earning potential in the peak summer season.
Returns for investors
The profitability of investing in property in Nerja can be attractive, especially in the holiday rental sector. With the growing tourist demand, property owners can get a good return on investment, although it will always depend on the management and the type of property purchased. On our website you can advertise your property in the list of rental properties in Nerja.
What are the risks of investing in Spain?
The risk is minimal if we invest in cheap properties. If there is no return, you can sell your property again. House prices have increased, driven by constant demand, and this trend is expected to continue. Areas with good infrastructure, services and tourist appeal are the most recommended for those looking to invest in property in Spain, offering both opportunities for permanent housing and monthly rentals.
If your investment is to set up a business, open a restaurant, an office, a rent a car, a real estate agency, a cafeteria, an ice cream shop, a hair salon, a guided tour company, excursions, a vtc uber or similar or teach yoga classes… any business dedicated to tourism. You must keep in mind that in summer everything works, but winters in the towns are very quiet. The population of Nerja triples in summer. But in winter it is a very quiet town.