Short-Term Rental Yield by Area: Costa del Sol ROI Comparison 2026

Why the Costa del Sol Dominates Spanish Short-Term Rental Returns

The Costa del Sol consistently ranks among Europe's top destinations for short-term rental investment. With over 300 days of sunshine per year, excellent international airport connectivity via Malaga (AGP), and a mature tourism infrastructure, the region attracts approximately 13 million visitors annually. But not every area delivers the same return on investment, and the differences between municipalities can be dramatic.

In this analysis, we break down real yield data across the most popular investment zones, using a combination of AirDNA market data, local property management company reports, and our own transaction records from 2025-2026. Every percentage and price range cited reflects current market conditions as of early 2026.

Understanding Yield Calculations: Gross vs Net

Before diving into area-by-area data, it's critical to understand how rental yield is calculated — and why the number your estate agent quotes is almost certainly the gross figure, not the net.

Gross Yield = (Annual Rental Income / Purchase Price) x 100. This is the headline number. If you buy a property for €300,000 and earn €21,000 in rental income, your gross yield is 7%. Simple, but misleading.

Net Yield = ((Annual Rental Income - Annual Costs) / (Purchase Price + Purchase Costs)) x 100. This is the number that actually matters. Your annual costs include community fees (€1,200-€4,800), IBI property tax (€600-€2,000), basura waste tax (€100-€300), insurance (€300-€600), property management (15-25% of rental income), maintenance reserve (5-10% of income), utilities paid by owner between bookings, cleaning costs not covered by guests, platform commissions (3-15%), and income tax on rental profits (19-24% for non-residents). Your purchase costs add another 10-13% to your investment base — including transfer tax (ITP) at 7% in Andalusia, notary and registry fees (€1,500-€3,000), legal fees (1-1.5%), and mortgage arrangement fees if applicable.

The reality: a property with an 8% gross yield typically delivers 4-5% net after all expenses. Any agent or developer promising you "guaranteed 8% returns" is almost certainly quoting gross — and may be inflating the income assumptions too.

Marbella: Premium Prices, Moderate Yields

Marbella is the Costa del Sol's crown jewel, but premium purchase prices mean yields are often lower than less glamorous neighbours. The average purchase price for a two-bedroom apartment suitable for holiday letting ranges from €350,000 to €550,000, depending on proximity to the beach and the Golden Mile.

Key metrics for Marbella holiday rentals in 2026:

• Average nightly rate: €120-€200 for a two-bedroom apartment (peak summer: €180-€280)
• Annual occupancy rate: 65-75% (higher for well-managed, well-located properties)
• Gross annual income: €22,000-€38,000 for a quality two-bedroom
• Gross yield: 5-7%
• Estimated net yield: 3-4.5%

Marbella's strength is its brand recognition and longer shoulder seasons compared to other Costa del Sol towns. Properties in the old town and beachfront locations command the highest nightly rates but also carry the highest purchase prices. The sweet spot for investment tends to be properties in San Pedro de Alcantara or the eastern outskirts of Marbella — still marketed as "Marbella" on Airbnb but at 20-30% lower purchase prices.

Tourist licence status: Marbella has been relatively accommodating with tourist licence (VFT) applications, though processing times have increased to 3-6 months. Properties in buildings where the community of owners has voted to prohibit tourist use are rejected outright — always check the community statutes before purchasing.

Estepona: The Rising Star with Strong Yields

Estepona has transformed over the past decade from a quiet Spanish town into one of the Costa del Sol's most desirable destinations. The town hall's investment in the old town — with its painted murals, pedestrianised streets, and orchid garden — has created genuine charm that drives repeat visits and strong reviews.

Key metrics for Estepona holiday rentals in 2026:

• Average purchase price (2-bed apartment): €250,000-€400,000
• Average nightly rate: €100-€170 (peak summer: €150-€230)
• Annual occupancy rate: 60-72%
• Gross annual income: €20,000-€32,000
• Gross yield: 6-8%
• Estimated net yield: 3.5-5.5%

Estepona's advantage is the combination of lower purchase prices with nightly rates that are only marginally below Marbella's. The town's genuine Spanish character attracts a slightly different tourist profile — more European couples and families looking for authentic experiences rather than the nightclub-and-beach-club crowd. This translates to longer average stays (5.2 nights vs Marbella's 4.1) and lower turnover costs.

The new build boom in Estepona means there's strong supply of modern, well-equipped apartments with pools and communal areas — exactly what short-term rental guests want. Properties on the new Estepona promenade and within walking distance of the old town perform particularly well.

Fuengirola and Benalmadena: High Occupancy, Lower Rates

These neighbouring resort towns form the Costa del Sol's mass-tourism heartland. Excellent public transport connections (the Cercanias train links both to Malaga airport in 30-40 minutes), vast beaches, and an enormous concentration of restaurants and entertainment options make them perennial favourites with budget-conscious holidaymakers.

Key metrics for Fuengirola/Benalmadena in 2026:

• Average purchase price (2-bed apartment): €200,000-€320,000
• Average nightly rate: €80-€130 (peak summer: €120-€180)
• Annual occupancy rate: 70-80% (among the highest on the coast)
• Gross annual income: €18,000-€28,000
• Gross yield: 5-6%
• Estimated net yield: 3-4%

The high occupancy rates here are deceptive. While your property will be rented more nights per year, the lower nightly rates mean your gross income may actually be lower than a property in Estepona with fewer bookings. The key advantage is predictability — these areas have consistent demand year-round thanks to their appeal to Nordic winter-sun seekers and their large resident expat populations who attract visiting friends and family.

Benalmadena Puerto Marina properties can achieve slightly higher rates (€100-€150/night) due to the marina views and proximity to Sea Life and Tivoli World. Fuengirola town centre properties near the Sohail Castle and main beach benefit from the town's excellent Wednesday and Saturday markets as tourist draws.

Nerja: Seasonal Gold with Summer Premiums

Nerja sits at the eastern end of the Costa del Sol, closer to Granada than Marbella, and has a markedly different character. The Balcon de Europa, the Caves of Nerja, and the dramatic Maro cliffs create a unique selling proposition that commands premium summer rates.

Key metrics for Nerja in 2026:

• Average purchase price (2-bed apartment): €220,000-€350,000
• Average nightly rate: €90-€160 (peak summer: €160-€250)
• Annual occupancy rate: 55-68% (highly seasonal)
• Gross annual income: €18,000-€30,000
• Gross yield: 6-8%
• Estimated net yield: 3.5-5%

Nerja's yields can be exceptional in summer — July and August occupancy regularly exceeds 95%, with nightly rates for well-positioned properties reaching €200-€250 for a standard two-bedroom apartment. The challenge is winter: November through February occupancy drops to 30-40%, and nightly rates fall to €60-€80. This extreme seasonality means your property sits empty for extended periods, though some owners offset this by offering medium-term winter lets to remote workers at €800-€1,200/month.

Nerja's development is constrained by the Natural Park of the Sierras de Tejeda, Almijara, and Alhama, which limits new supply and supports long-term price appreciation. The town has also been strict with tourist licence enforcement, removing illegal listings, which benefits licensed operators.

Mijas Costa: Family-Friendly and Consistent

Mijas Costa — the coastal strip below the white pueblo of Mijas — offers a middle ground between the premium pricing of Marbella and the budget appeal of Fuengirola. Calahonda, Riviera del Sol, and La Cala de Mijas are the primary rental zones.

Key metrics for Mijas Costa in 2026:

• Average purchase price (2-bed apartment): €220,000-€350,000
• Average nightly rate: €90-€150 (peak summer: €140-€200)
• Annual occupancy rate: 60-72%
• Gross annual income: €18,000-€28,000
• Gross yield: 5-7%
• Estimated net yield: 3-4.5%

Mijas Costa's appeal is to families — the area is packed with large pool complexes, proximity to Bioparc Fuengirola, and quieter beaches than central Fuengirola. This translates to longer average bookings (families tend to stay a full week rather than long weekends) and less wear and tear on properties. La Cala de Mijas, in particular, has seen significant price appreciation since 2022 as the area's boutique restaurants and beach clubs have raised its profile.

Nueva Andalucia: Luxury Niche with Limited Season

Known as the "Golf Valley," Nueva Andalucia sits behind Puerto Banus and is home to some of the Costa del Sol's most prestigious golf courses — Las Brisas, Los Naranjos, Aloha, and La Quinta. The rental market here is dominated by golfers and luxury short-break travellers.

Key metrics for Nueva Andalucia in 2026:

• Average purchase price (2-bed apartment): €350,000-€550,000
• Average nightly rate: €130-€220 (peak: €200-€350 for villas)
• Annual occupancy rate: 50-65%
• Gross annual income: €22,000-€36,000
• Gross yield: 4-6%
• Estimated net yield: 2.5-4%

Nueva Andalucia delivers the lowest net yields on this list because of the high entry price, elevated community fees (many complexes have pools, gyms, and extensive gardens), and a shorter high-demand season. Golf tourism peaks in spring (March-May) and autumn (September-November), leaving summers underperforming relative to beachfront locations and winters very quiet.

However, capital appreciation in Nueva Andalucia has been among the strongest on the coast — properties have gained 35-50% in value since 2020 — so the total return picture (yield plus capital growth) may outperform higher-yielding but slower-appreciating areas.

Data Sources and Tools for Your Own Research

Don't rely solely on agent estimates. Use these tools to verify rental income assumptions before purchasing:

• AirDNA: the industry standard for short-term rental market data. Their MarketMinder tool provides average daily rates, occupancy rates, revenue estimates, and seasonal patterns for any postcode. Cost: from €19.95/month. Essential for due diligence.
• Mashvisor: useful for comparing short-term vs long-term rental income for specific properties. Their heat maps show which neighbourhoods outperform.
• Transparent (formerly AllTheRooms Analytics): aggregates data from Airbnb, Booking.com, and Vrbo to give a fuller picture of supply and demand.
• Idealista rental listings: for long-term rental comparisons, checking what similar properties rent for monthly.
• Local property management companies: the best source of ground-truth data. Ask for their actual performance reports from comparable properties — good managers will share anonymised data to demonstrate their track record.

Our Recommendations: Where to Invest in 2026

Best overall yield: Estepona. The combination of reasonable purchase prices, strong nightly rates, and genuine town appeal makes it the most attractive risk-adjusted investment on the coast right now.

Best for hands-off income: Fuengirola/Benalmadena. High occupancy and mature management infrastructure mean less stress and more predictable returns, even if the absolute yield is lower.

Best for capital growth plus yield: Nerja. Constrained supply and growing international recognition suggest continued price appreciation alongside decent seasonal rental returns.

Best for premium investors: Marbella. If your purchase is partly lifestyle-driven and you want personal use plus rental income, Marbella offers the best balance of personal enjoyment and financial return.

Remember: the best rental investment is one that performs when you are not using it. Buy for yield first, lifestyle second, and your Spanish property will reward you financially for years to come.