Investing in the vacation properties market:
due to the change in our behavior after COVID-19, economic uncertainty, inflation, and military conflicts, many investors have found refuge in properties in vacation destinations.
With an average ROI > 10%, the Costa del Sol region of Spain has seen the highest growth in foreign investment in 2023, outperforming the Algarve or the Côte d'Azur LINK
- Over 100 nationalities live in relaxed communities, with complete attractions, amenities, and services.
- 180 Km of coastline, thousands of resorts with spectacular hilltop views.
- Europe's most luxurious promenade in the Golden Mile, with the classy Club Marbella and the vibrant Puente Romano.
- The world's most luxurious villa communities as well as affordable new apartment complexes. Sports, Nature & Infrastructure: Premier golf destination with over 70 courses, championships for padel, polo, biking, nautical, kyte, gym, and also 18 harbors, many airports, 36 international schools, and hospitals.
- There are property databases dedicated to real estate agent collaboration that allow access to any available property through a buyer's agent.
- Real estate developers also sell through exclusive real estate agents that distribute at the whole market.
- Real estate commissions are paid by the seller, while the services are free for the buyer.
- The notary has limited powers in Spain and for the security of the transaction, the services of a lawyer is strongly recommended LINK
- After the 2008 crisis, which hit Spain hard, the government regulated residential development very well. The buyers' advances are protected by banks in escrow accounts, and the developer needs pre-sales to obtain bank financing.
- The KYC/AML system is very strict, but it can be outsourced to a lawyer who takes over the entire acquisition process.
- The signing of the final contract (title deed) takes place for new buildings prior to the repairs reported in the property inspection by your agent.
- The market is very fragmented in property management with fees between 10-25% for short-term rentals.
- On average 30,000 transactions/year:
- 70-75% of transactions are resale, down 20% in 2023 from record high in 2022
- 25-30% in new projects, with an estimated 35% increase from 2022 - off-plan projects are only accounted for in official sources after the completion date.
- Available stock for sale: approx. 600 new projects and 10.000 resales
- Total acquisition costs, including attorney: approx. 9.3% for resales and 13.3% for new properties.
- Annual property taxes are on average 0.25% of the property price, and rentals are taxed from the profit with 19% for EU citizens and 24% for non-EU citizens.
- Resale is taxed at 19% for EU citizens and 24% for non-EU citizens. It is rarely allowed to resell an off-plan property, until the time of delivery.
- For resale properties, the average yield is 4-5% before taxes.
- For off-plan projects, the average return reaches 7-8% before tax.
- Average price growth across the region has been 50% over the last 5 years, with 11.3% in 2023.
- Save time with ease of digital access to the residential market with centralized management of your buying project, with responsibility & privacy.
- Dozens of similar properties are available, both in terms of design, lifestyle, and areas, with slight differences in terms of pros & cons. With Directimo you can remove the ones you don't like online.
- Your optimized requirements come to area specialized and dedicated field agents for your project.
- With transparent access to the market, see the latest properties and price changes in real-time.
- Quickly understand the market so you can make the best decisions.
- Customized priority alerts, including for pre-sale projects, put you in pole position.
- We interviewed over 200 real estate agents on the Costa del Sol to identify ethical and highly skilled real estate agents for properties in the market segments covered.
- Each recommendation is verified from a minimum of 3 sources, information corroborated with market data obtained from our partner lawyers, Franke & dela Fuente - one of the most trusted local law firms in Spain & Costa del Sol.
- In order to identify the best property management solutions, we have carried out an exhaustive study with the top 20 companies on the Costa del Sol.
- Directimo integrates over 95% of market real inventory and does not represent properties for sale.
- The Directimo.com team has over 17 years of experience in assisting thousands of transactions carried out in the buyer's best interest.
- Directimo integrates more than 95% of real market inventory and market data through platforms such as airdna/airbnb, idealista, resales-online, inmobalia, casafari and others.
- The market research team tracks the local real estate market through official reports, studies and analyses of local and international agents and also conducts market research on the ground
- We collaborate with leading local estate agents who are more dedicated due to the efficiency of the process whereby we eliminate unnecessary field visits
- The Directimo Premium Service is available for 12 months but can be extended at no extra cost until the time of purchase.
- For the overwhelming majority of offers, our commission is provided by the seller. In some cases, if the customer opts for it, a commission of up to 2.5% will be applied for certain offers, such as some resale offers where several agents will be involved in the transaction, offers available through auctions, or other special projects.
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