Introduction: understanding investment models

The Costa del Sol offers a wide range of real estate investment models – from traditional rental properties and holiday lettings to sophisticated off-market deals. Whether you plan to invest in Málaga city, Mijas Costa, San Pedro de Alcántara, Estepona town centre or Nerja, each segment comes with its own opportunities, risks and requirements.

Mike Naumann Immobilien has been analysing the regional property market for years and helps you identify the model that best matches your target return.

2) Long-term rentals – stability and continuity

Long-term rentals are a classic investment model, particularly in urban and well-connected areas such as Fuengirola town centre, La Cala de Mijas or Estepona old town. Investors benefit from regular rental income through longer contracts, with fewer fluctuations and less management effort compared to holiday rentals.

Advantages:

• Predictable income throughout the year
• Lower operational effort
• Stable rental contracts, often 1–5 years

Disadvantages:

• Lower average yields compared to holiday rentals
• Less flexibility for personal use

3) Off-market and luxury investments

Off-market properties and luxury real estate represent another top-tier investment model, particularly in exclusive areas such as Sierra Blanca, Golden Mile and La Zagaleta. These opportunities are rarely publicly listed but can offer above-average capital appreciation potential.

Advantages: