Why Spain’s Economic Growth Makes the Costa del Sol a Prime Investment Opportunity
Spain has emerged as an unexpected economic success story in 2025, achieving the fastest growth rate among developed nations last year. With a 3.2% GDP increase, Spain outperformed the United States, the UK, and the EU average, solidifying its position as one of Europe’s most attractive places to invest.
For property buyers, particularly those looking for holiday homes, investment properties, or permanent residences, Spain’s economic strength translates into long-term stability, increasing property values, and a thriving rental market. Nowhere is this more evident than on the Costa del Sol, a region that continues to draw interest from international buyers.
Here’s why Spain’s booming economy makes the Costa del Sol the perfect place to invest right now.
Spain’s Economic Success: What’s Driving Growth?
Spain’s economy has been fuelled by record-breaking tourism, a booming job market, and investment in renewable energy. These factors not only support economic stability but also create a highly attractive environment for foreign property buyers.
Record-Breaking Tourism
In 2024, Spain welcomed 94 million tourists to both the mainland and islands – almost twice the country’s population. In fact, tourism accounted for 13% of the national GDP, with tourists spending around €126 billion during their stays.
Exports of non-tourism services also increased and now contribute seven per cent of GDP (from 5.5 per cent pre-pandemic) – with an emphasis on high value-added sectors like information, communication and technology, banking and professional services.
What this means for property investors:
- Strong short-term rental demand – Holiday rentals in Marbella and Estepona, and around the Málaga province remain highly profitable.
- Higher occupancy rates – Rental properties benefit from consistent bookings due to year-round tourism.
- Rising property values – Increased demand from visitors and second-home buyers continues to drive up prices.
A Booming Labour Market
Spain’s unemployment rate dropped to 10.6%, its lowest level since 2008, with 660,000 new jobs created each year. Growth in high-value industries such as technology, banking, and professional services is further strengthening the country’s economic foundation. This means:
- A growing population and expat community create demand for long-term rentals.
- More employment opportunities make Spain an attractive place to relocate for work.
- Increased consumer spending supports local businesses, enhancing the appeal of cities like Marbella.
Affordable and Sustainable Energy
Spain’s investment in renewable energy has significantly lowered electricity prices. Last year, 60% of Spain’s electricity came from renewables, keeping energy costs lower than in many other European countries.
How Spain’s Economic Growth Benefits Property Buyers
Rising Property Values in the Costa del Sol
The combination of strong tourism, population growth, and high demand for housing is pushing property prices upwards. Buyers who invest now are likely to see significant capital appreciation in the coming years.
A Profitable Rental Market
The Costa del Sol is one of Spain’s most lucrative regions for both holiday lets and long-term rentals. With the demand for housing rising due to immigration, tourism, and job growth, landlords can benefit from high yields and year-round demand.
Favourable Government Reforms
The Spanish government has introduced immigration and labour reforms that make it easier to work and settle in Spain. Residency options for non-EU buyers, such as the Digital Nomad Visa and the Non Lucrative Visa, also continue to make Spain an attractive location for foreign investors.
Why the Costa del Sol is the Best Place to Invest
With Spain’s economy on the rise, the Costa del Sol stands out as the premier location for international buyers.
- Fantastic lifestyle: 300+ days of sunshine, world-class golf courses, Michelin-starred restaurants, and luxury marinas.
- Strong international community: A well-established network of expats from the UK, Scandinavia, and beyond.
- Luxury developments and infrastructure: The region continues to see investment in new-build properties and high-end amenities.
- Proximity to key cities: Well-connected to Málaga, Gibraltar, and multiple major European capitals via international airports
For buyers looking to invest in a region that offers economic security, lifestyle benefits, and long-term property growth, the Costa del Sol remains a clear front-runner.
Why Now is the Best Time to Invest in Spain
Spain’s remarkable economic performance, record-breaking tourism, and growing demand for housing make it the perfect time to invest in the Costa del Sol. Whether you’re looking for a luxury villa, beachfront apartment, or high-yield rental property, there has never been a better time to buy.
At Winkworth Spain, we specialise in helping buyers find the perfect property in Guadalmina, Marbella, Estepona, Benahavís, and beyond. With exclusive listings, expert local knowledge, and personalised service, we make the buying process easy and stress-free.
Ready to invest in the Costa del Sol? Get in touch today to explore our latest property opportunities and take advantage of Spain’s thriving economy.