Marbella’s real estate market has always been a desirable location for property investors, but the rental market is increasingly becoming a focal point of attention. Both long-term and short-term rentals are in high demand, driven by a mix of local and international factors. This surge in demand, coupled with a limited supply, has pushed rental prices higher across the board.
At Move2Marbella, the expertise of our team, led by Zsolt Mihaly Horvath and Regan Berger, positions us perfectly to help navigate these market changes. Whether you’re looking to rent out your property or find a home in this competitive market, we’re here to assist.
What is classed as a long-term rental in Spain?
A long-term rental in Spain typically refers to a rental agreement lasting for a minimum of 12 months. Unlike short-term rentals, which are often used for vacations or seasonal stays, long-term rentals are aimed at those looking to establish a more permanent residence, such as expats, professionals, or families. In popular areas like Marbella and along the Costa del Sol, long-term rentals are an attractive option for individuals seeking stability without the commitment of purchasing a property.
Long-term rentals in Marbella and other parts of the Costa del Sol usually offer properties such as villas, apartments, or townhouses, which can be rented furnished or unfurnished. The rental market in these areas is diverse, with options ranging from luxury villas to more budget-friendly apartments. Long-term leases are often more cost-effective compared to short-term rental rates, and tenants benefit from added security and tenant rights under Spanish law, which is designed to protect both renters and property owners.
If you’re considering a long-term rental in Spain, particularly in sought-after locations like Marbella, it’s important to understand the rental conditions, average rental prices, and the terms specified by landlords to ensure a smooth rental experience.
What is classed as a short-term rental in Spain?
A short-term rental in Spain is typically defined as a rental period lasting less than 12 months, often ranging from a few days to several weeks or months. Short-term rentals are popular in tourist-heavy areas like Marbella and the Costa del Sol, where people are looking for vacation accommodations or temporary stays. These rentals are ideal for travelers, tourists, or those who need flexibility without committing to a long-term lease.
In Marbella, short-term rentals are usually furnished properties, including villas, apartments, and townhouses, catering to tourists seeking a comfortable stay with amenities. The rental market for short-term properties in Spain is highly dynamic, especially during peak tourist seasons, when demand for holiday rentals is at its highest. Property owners often prefer short-term rentals for higher rental income potential, as rental rates for vacation properties can be significantly more lucrative compared to long-term rentals.
If you're considering a short-term rental in Spain, be sure to check local regulations, as the rules governing short-term rental properties may vary by region. Particularly in popular tourist destinations like Marbella, it is important to confirm that the property has the necessary rental license and complies with local guidelines.
Long-Term Rentals: A Limited and Expensive Market
The long-term rental market in Marbella has seen significant growth in prices over recent years. Many property owners who once rented out long-term have shifted their focus to short-term rentals due to higher profitability. This has caused a shortage of properties available for long-term rent, driving up prices even more.
A well-furnished, two-bedroom apartment in a good location in Marbella now rents for anywhere between €1,400 and €3,000 per month. The demand shows no signs of slowing down, leaving many local workers struggling to afford rentals within the city. As a result, it is becoming increasingly common for employees in Marbella to live farther afield, sometimes commuting 30 minutes or more to work.
This situation is affecting not only local workers but also various demographics, including:
- Civil servants, office workers, and hospitality staff
- International clients looking for a “leisure year” in the sun
- Digital nomads and remote business professionals
- Families looking to settle in Marbella, often with the intent to eventually buy
According to Idealista, rental prices in Marbella’s prime areas have continued to rise. For instance, Golden Mile and Nagüeles saw prices jump to €19.2/m² per month, a 10.3% increase from 2023. In Nueva Andalucía and Los Monteros, rental rates rose by 11.1%, averaging €18.4/m² and €16.7/m², respectively.
Marbella's rental market has transitioned from a modest one pre-2000 to one that mirrors high-demand cities like Madrid and Barcelona. This rapid increase in demand, combined with a diminishing supply, has created an environment where finding affordable long-term rental options is increasingly difficult.
Short-Term Rentals: Regulatory Changes and a Booming Market
While long-term rentals face supply issues, short-term rentals for tourists are booming. Marbella’s attractiveness to high-net-worth visitors continues to fuel this market. The new Decreto 31/2024, which came into effect in February 2024, introduced additional regulations for short-term rental properties, ensuring that the market remains professional and transparent.
Properties that are rented for periods of less than two months for tourist use must comply with these new regulations. Some of the key changes include:
- A requirement for owners to provide a 24-hour contact number for renters
- If the property is managed by a third-party company, the management entity must register with the Tourism Registry of Andalucía by August 2024
- Properties must meet strict standards for furnishings, equipment, and safety features, including air-conditioning, fire detection systems, and waste separation
Furthermore, properties not registered or in compliance face serious penalties, with fines reaching up to €18,000 or more. As of 2024, there are 6,991 tourist residences in Marbella, making up 6.9% of the total housing stock, compared to larger cities like Madrid and Barcelona.
With these regulatory changes, short-term rentals are becoming more professionalized, which benefits both property owners and tenants. However, owners need to be aware of the additional paperwork and responsibilities involved in staying compliant.
Future Outlook for Marbella’s Rental Market
Marbella’s rental market is evolving. The high demand for properties, both for long-term and short-term rentals, is pushing prices up and making it a lucrative opportunity for property owners. However, it’s also becoming increasingly competitive, and regulatory changes are making it more complex.
While the municipal government in Marbella currently sees no need to limit short-term rentals, the Town Hall has commissioned a new study from the University of Málaga to analyze if short-term rentals are impacting the local market negatively. This could signal future changes, though Marbella’s market remains less strained compared to cities like Madrid or Barcelona.
The national government has also indicated plans to introduce a new registry for tourist properties to further regulate the market. Property owners should stay ahead of these changes by ensuring compliance with current laws and seeking professional assistance when necessary.
At Move2Marbella, our team is well-versed in both the long-term and short-term rental markets. We’re here to help property owners navigate these changes and maximize their investments, whether they’re looking to rent out their properties or find the perfect home in Marbella’s competitive market.
Summary for Long-term vs Short-term in Marbella
As Marbella’s real estate market continues to grow, the rental sector has emerged as a vital component of its success. Whether you’re a local worker seeking long-term accommodation or an investor eyeing the short-term rental market, the landscape is shifting, and staying informed is essential.
With the expertise of Zsolt Mihaly Horvath and Regan Berger, Move2Marbella offers clients unparalleled insights into the ever-evolving rental market. From regulatory compliance to finding the perfect tenant, our team is dedicated to helping you make the most of your property in Marbella.