Build to rent in Marbella a new model of investment

When we think of the reasons for buying a property on the Costa del Sol, the most common are to use as a holiday home, a part-time residence, a permanent one, and/or an investment. A lot of people, particularly those who buy a Marbella property as an investment, look to obtain a good return on their investment through holiday rentals – in other words, Marbella property built to rent.

Built to rent properties

The definition of build to rent is really buying a property to rent it out as a business, and the build to rent model involves buying a Marbella property – either an existing home or an in an off-plan project– decorating it in a way that will attract rental tenants, and then marketing it accordingly, so as to maximise your annual earnings and therefore your return on investment (ROI).

The build to rent market on the Costa del Sol is buoyant, and can be broken down into two main categories: long-term lets and short-term holiday rentals. Each has its own characteristics, pros and cons, and different forms of management and marketing. Generally, though, long-term rentals are less labour-intensive and holiday rentals are more lucrative, but in both cases there are professional property management companies that can handle the whole process for you.

The Edge Estepona is a privileged project of almost 10.000m2 in a unique space in front of the beach

Build to rent developments

While there are no property developments entirely dedicated to this segment of the market, there is a wide choice of build to rent housing available to choose from, including apartments, townhouses and villas in a wide range of budgets and locations. The latter incorporate frontline beachgolf facing and other settings, where apartments and townhouses are most popular for long-term renting, and apartments, penthouses and villas the preferred option for short-term lets.

As it can produce returns of between 4% and 8%, using real estate asset in this way is popular among build to rent investors, which range from small individual homeowners to larger groups and even build to rent funds that specialise in acquiring and managing apartments, townhouses and villas specifically for this purpose. In many cases, the returns beat those offered by the stock markets, and at the same time you are acquiring a solid asset in the form of a home.

 

The Edge Estepona consists of 70 apartments and 2 magnificent villas, built with the best materials and finishes.

From Nvoga we see that for “The Edge”, which is completely finished and ready to move in, there is a market of high profile investors who are interested in buying this type of exclusive property. From partial use for residence and rental for the rest of the time, to full use for investment rentals, The Edge demonstrates its potential for the built ot rent market given its proximity to Gibraltar, which is experiencing a demand for high end rental properties of this type. Contact our market specialists now at Nvoga and let them inform you about build to let property in Marbella and surroundings.

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