Published on and written by Cyril Jarnias
Located on the Costa del Sol, directly connected to Málaga and its airport by the Cercanías commuter train line, Fuengirola has gone in just a few years from being a “nice and affordable resort” to a genuine real estate hotspot. Double-digit price increases, strong rental demand, a well-established international community, booming infrastructure: all factors converge to make it a market worth watching closely.
Investing in real estate in Fuengirola is no longer an impulsive gamble. Prices have reached historic highs, regulations on tourist rentals have tightened, and the gaps in value between neighborhoods are considerable. There are good opportunities, but it’s essential to know the market to avoid pitfalls.
This article offers a comprehensive and practical overview of the market: price dynamics, rental yields, neighborhood-by-neighborhood focus, legal framework for rentals, acquisition costs, relevant investor profiles and medium-term outlook.
A Booming Market
Fuengirola is one of the most international cities on the Costa del Sol, with about 80,000 year-round residents, a strong Scandinavian and British presence, a mild climate, and active urban life 12 months a year. This solid residential base, combined with tourism, fuels continuous demand for housing, both for purchase and rent.
By the end of 2025, the average asking price for real estate exceeded about 4,650 € per square meter, representing annual growth of 17 to 19%.
Sustained Growth for Several Years
This dynamic isn’t new. For apartments, aggregated data shows almost continuous growth:
| Year | Average Apartment Price (€/m²) | Approximate Annual Change |
|---|---|---|
| 2022 | ~2,920 – 3,080 | – |
| 2023 | ~3,180 – 3,210 | +4 to 9% |
| 2024 | ~3,550 – 3,580 | +11 to 12% |
| 2025 | ~3,960 – 3,960+ | +10 to 12% |
For houses and villas, the curve is similar, with slightly lower price per square meter levels, but a marked acceleration since 2022.
This local momentum is part of a broader trend: the Spanish market saw its strongest annual increase in 2024 since 2007, and the province of Málaga is one of the most dynamic areas in the country, driven by the Costa del Sol.
A Seller’s Market, Little Room for Negotiation
In this context, Fuengirola is clearly a seller’s market. The average sales period is around 1 to 3 months, which is short for an already well-developed coastal market. Real negotiation margins typically range from 3 to 8% below the asking price, rarely more for well-positioned properties (sea view, near the beach, renovated product).
For an investor, this means two things: on one hand, evaluating the yield potential and growth of an asset, and on the other, analyzing and mitigating the risks associated with this investment. This dual approach is fundamental for making informed decisions and balancing one’s portfolio.
– don’t expect massive “discounts”, especially in premium neighborhoods;
– the key to long-term profitability lies more in the choice of neighborhood, type of property, and rental strategy than in simply buying “below the price.”
How Much Does a Property Cost in Fuengirola?
The entry price in Fuengirola varies greatly depending on the type of property, size, view, and especially the neighborhood. But we can identify some benchmarks.
Price Ranges by Property Type
Consolidated data for 2025 gives the following ranges for apartments:
| Apartment Type | Estimated Avg. Price (€/m²) | Typical Price Range |
|---|---|---|
| Studio / 1 Bedroom | 4,200 – 4,500 | 120,000 – 220,000 € |
| 2 Bedrooms | 4,400 – 4,600 | 200,000 – 400,000 € (≈ 320,000 €) |
| 3 Bedrooms | 4,200 – 4,500 | 300,000 – 500,000 € (≈ 425,000 €) |
| All Apartments | ≈ 4,480 | 160,000 – 925,000 € (80% of the market) |
For houses, villas, and townhouses:
| Type of House / Villa | Typical Price Range |
|---|---|
| Old Village House / Townhouse | 200,000 – 350,000 € |
| Renovated / Modern Townhouse | 350,000 – 700,000 € |
| New Townhouse with Sea View | 700,000 – 1,200,000 € |
| Small Old Villa (150–200 m²) | 300,000 – 500,000 € |
| Modern Villa (200–350 m²) | 600,000 – 1,200,000 € |
| Luxury Villa (El Higuerón, etc.) | 2,000,000 – 4,000,000 € and up |
The median price for an apartment is around 334,000 €, while for a house it rises to around 828,000 €, with about 10% of villa listings above 4.5 million euros.
Neighborhoods with Very Contrasted Profiles
Investing in real estate in Fuengirola first means choosing the right micro-sector. The city is divided into areas with very different identities: lively downtown, very premium coastal strips, quieter residential hills, affordable family pockets.
Here is an overview of the main neighborhoods interesting for investment.
Fuengirola Centro: Urban Heart and Rental Yield
The center (Centro Ciudad, Puerto Deportivo, areas near Plaza de la Constitución and the Paseo Marítimo) concentrates the majority of commercial life and transportation: train station, bus station, shops, restaurants, bars, marina, seafront promenade. Everything is within walking distance.
Key characteristics:
– excellent access: Cercanías station, buses, near the beach;
– urban profile: apartment buildings, sometimes old, often with renovation potential;
– strong rental appeal: tourists, young professionals, digital nomads, residents without a car.
Regarding prices, the center has an intermediate profile:
| Central Area | Average Sale Price (€/m²) | Average Rent (€/m²/month) | Market Profile |
|---|---|---|---|
| Centro Ciudad | 3,400 – 4,100 | ≈ 16.0 | Downtown, mixed market |
| Puerto Deportivo (Marina) | 4,800 – 4,850 | ≈ 15.7 | Seafront, marina life, strong demand |
The center is considered one of the best sectors for tourist and seasonal rental investment, with a classic downside: heavy traffic, nighttime noise, parking difficulty. For an investor seeking yield rather than prolonged personal use, these constraints are often acceptable.
Los Boliches: Balance Between Authenticity, Beach, and Profitability
Los Boliches has been one of the big winners in recent years. A former fishing village, it has retained a fabric of narrow streets, tapas bars, traditional houses, while gaining modern amenities. It benefits from its own station on the Málaga–Fuengirola line, very popular beaches, and a more “local” atmosphere than the center.
The neighborhood is divided into two parts:
– seafront (Playa de Los Boliches and the strip between the beach and the N-340), very sought-after;
– inland part, more affordable, but still central and very walkable.
The numbers speak for themselves:
| Los Boliches Sub-area | Average Sale Price (€/m²) | Comment |
|---|---|---|
| Playa de Los Boliches | 4,550 – 4,650 | Prime seafront, +26% in 2025 |
| Los Boliches (inland) | 3,700 – 3,900 | Central, good value for money |
This 20 to 25% difference between seafront and inland is typical: for an 80–100 m² apartment, a beachfront one often costs 370,000 to 460,000 €, while a comparable property a few streets back sells for around 260,000 to 320,000 €.
The Los Boliches neighborhood offers many advantages for a real estate investor. It ticks several essential boxes: a prime location on the Costa del Sol, strong rental demand, a dynamic market, and an attractive living environment, making it a strategic choice.
– very strong rental demand, short and long term;
– excellent train connection, easy to walk, beach within walking distance;
– balanced mix of residents / tourists, preserved Spanish atmosphere;
– spectacular price growth in 2025 (+26% year-on-year).
It is, in the opinion of many observers, one of the most interesting sectors to invest in Fuengirola, with a risk level considered low to medium.
Torreblanca: Hills, Sea Views, and Capital Gain Potential
At the eastern end of Fuengirola, Torreblanca spreads across hillsides above the sea. The terrain makes beach access less immediate (often needing a car or good legs), but offers exceptional panoramic views.
You’ll find:
– spacious villas and townhouses;
– modern developments with pools and gardens;
– high-rise apartments with breathtaking views of the Mediterranean.
Key strengths for an investor:
– still “reasonable” prices for the location, with many properties considered undervalued;
– rail access (station on the Málaga–Fuengirola line for some parts of the neighborhood);
– growing international clientele, particularly Scandinavian and British;
– strong growth prospects, the area being classified as “developing.”
Price data places Torreblanca del Sol around 4,800–4,850 €/m² on average, with some sources indicating peaks above 5,100 €/m² for the most sought-after properties. It’s one of the areas with the highest asking prices as of August 2025.
Torreblanca is particularly suitable for:
This property is ideal for three types of buyers, each finding a specific interest.
Perfect for buyers looking for tranquility and space for their primary residence.
Suitable for investors targeting medium/long-term rentals, especially for families or remote workers.
Interesting for profiles oriented towards “capital gain” in a booming neighborhood.
Carvajal – Las Gaviotas: The High-End Beachfront Segment
On the border with Benalmádena, Carvajal is now the most expensive area in Fuengirola. You’ll find:
– renowned beaches, rather quiet;
– new seafront developments, with pools, spa, private security;
– penthouses and villas offering panoramic views.
The numbers are clear:
| Carvajal – Las Gaviotas | Average Sale Price (€/m²) | Comment |
|---|---|---|
| Entire Sector | 5,200 – 5,300 | Most expensive area in Fuengirola |
| 80–100 m² in Carvajal | 420,000 – 530,000 € | High-end seafront or sea view apartments |
Carvajal attracts:
– second-home buyers;
– investors seeking a very premium positioning;
– an international clientele willing to pay for the best combination of beach + view + amenities.
The potential for long-term capital gain remains high, but the percentage yield may be slightly lower than in more “value” sectors like Los Pacos or inland Los Boliches, due to the higher entry price.
Los Pacos: Family-Friendly, Affordable, and on the Rise
Inland, northwest of Fuengirola, Los Pacos has become a favorite for families and Northern European expats, especially Finns. The neighborhood is quiet, modern, well-equipped (schools, parks, shops, services), with a decidedly residential atmosphere.
Distinctive points:
– lowest price per square meter in the city among major neighborhoods;
– recent buildings, better energy efficiency;
– infrastructure designed for year-round living;
– strong family community, long occupancy periods.
The data confirms this positioning:
| Neighborhood | Average Sale Price (€/m²) | Comment |
|---|---|---|
| Los Pacos | 3,200 – 3,450 | Most affordable sector in Fuengirola |
For an 80–100 m² apartment, it’s typically 260,000 to 345,000 €. The sea is about 1–2 km away, a 10 to 15-minute walk, or a few minutes by car. A vehicle is almost essential, but highway access to Málaga or Marbella is excellent.
For the investor, Los Pacos offers:
This property has significant appreciation potential as it’s located in an undervalued neighborhood. It benefits from stable rental demand, particularly for long-term leases. The risk is considered low, being driven by a clientele of families and permanent residents.
El Castillo / Sohail, Santa Amalia, Miramar: Calm, Beach, and Families
To the southwest, towards Sohail Castle and the Miramar area, the landscape changes: more green spaces, a feeling of the outskirts, while still being close to the center. You’ll find:
– wide sandy beaches, less crowded than those downtown;
– two large shopping centers;
– a pleasant park along the river;
– recent developments, often with pools, within walking distance of the sea.
Prices in the Sohail – El Castillo sector are around 4,600–4,650 €/m², with annual growth of around 12 to 15% recently. The atmosphere is more family-oriented and residential, with less noise and traffic than in the heart of the center.
For an investment, these neighborhoods are particularly relevant for:
– mixed-use second home / seasonal family rental;
– year-round rentals for families seeking a calm environment;
– a “quality of life” positioning rather than pure yield optimization.
El Higuerón: The Luxury and Resort Segment
Straddling Fuengirola and Benalmádena, El Higuerón has established itself as a luxury enclave, with recent developments, breathtaking views, and services worthy of a resort: high-end sports clubs, spas, restaurants, concierge, etc.
Strengths:
– contemporary architecture, high-end finishes;
– projects like Lomas del Higuerón, a program of 1,200 luxury homes for a total investment of about 600 M€;
– presence of the Higuerón Resort, a local reference for amenities.
Prices are high, often starting from 4,800–5,000 €/m² or more, with villas easily exceeding 2–4 million euros. The sector is identified as an investment hotspot for the high-end clientele, with solid growth potential but a risk level and exposure to economic cycles slightly more pronounced than in more “mainstream” areas.
Rental Yields: What You Can Realistically Expect
Fuengirola is regularly cited among the cities offering the best rental yields on the Costa del Sol, thanks to structurally strong demand for both tourist and long-term rentals.
Rent Levels and Average Profitability
Aggregated data indicates that in 2025, the average asking rent was around 15.3 €/m² per month, with a range of 10.5 to 16.6 €/m² depending on the neighborhood. In practice, for a standard apartment:
| Housing Type | Approximate Average Monthly Rent | Indicative Average Gross Yield |
|---|---|---|
| Studio | ~950 € | 5.3–5.6% |
| 1 Bedroom | 1,000–1,100 € | 4.8–5.3% |
| 2 Bedrooms | 1,300 € | 3.9–4.0% |
| 3 Bedrooms | 1,450–1,500 € | 3.4–3.6% |
| 4+ Bedrooms | 1,650–1,680 € | 3.6–4.5% |
Overall, most studies place the average gross yield for apartments between 4 and 6%, with peaks of 6–7% for the most optimized products (small apartments near the beach, very well-managed for short-term rentals).
Villas generally offer a lower gross yield (3–4%), but can compensate with very high rents in peak season and greater potential for capital appreciation.
Tourist Rental: High Profitability, Strict Regulation
Tourist rental (stays of less than two months, via platforms like Airbnb) can achieve theoretical gross yields ranging from 6.5 to 11% on the Costa del Sol, with net yields around 3.5 to 6%. In Fuengirola, for a 2 or 3-bedroom apartment by the sea, reasonable estimates are:
– 2 bedrooms seafront: 6–8% gross, 4–5% net;
– 3 bedrooms: 5–7% gross, 4–5% net;
– villa with pool: 5–8% gross, 3–4% net.
But these figures should not obscure two structural elements:
– seasonality is strong: occupancy rates of 85–95% in high season (July–August), but much lower in winter;
– regulation has significantly tightened, especially in Fuengirola.
Since 2024–2025, several levels of rules apply:
– at the national level (Spain), the law strengthened the powers of homeowners’ associations to limit or prohibit tourist rentals in a building, with a requirement to obtain agreement from 60% of co-owners for a new permit in multi-owner buildings;
– at the Andalusian level, a new decree established a mandatory national registry for tourist rentals, with a unique registration code to display in listings, under penalty of removal by platforms;
– at the local level, the Fuengirola town hall has drastically restricted the granting of new licenses: since 2024, only properties with independent street access (single-family homes, ground floors with separate entrance) can apply for new tourist registration. About 600 pending applications were canceled for non-compliance with this requirement.
Concretely, for an investor:
Buying a property with an existing tourist license is a major advantage, as it remains valid for the buyer (subject to notifying the change of owner). Obtaining a new license in a standard apartment building is now very difficult, if not impossible, except in specific cases. Penalties for undeclared activity are heavy: fines up to 150,000 €, activity closure, increased waste tax, and loss of local tax benefits.
Tourist rental remains profitable, but can no longer be considered an “automatic right” attached to any purchase near the beach. Caution and specialized legal advice are essential.
Medium and Long-Term Rental: Stability and Strong Demand
In parallel, medium-term rental (2 to 11 months) and long-term rental (12 months and more) remain regulated but much simpler from a regulatory standpoint. The reported yields are:
– medium-term (2–11 months): 5–8% gross, 3–5.5% net;
– long-term (12 months and more): 4–7% gross, 2.5–4.5% net.
Demand is “very high” for long-term, driven by:
– expats settling year-round;
– foreign families wanting to test life on-site before buying;
– remote workers settling for 6–12 months.
Neighborhoods like Los Pacos, Torreblanca (residential parts), some areas of the center and inland Los Boliches lend themselves particularly well to this type of rental, with high occupancy rates and less regulatory volatility.
Acquisition Costs and Taxation: Don’t Get Caught Off Guard
Beyond the property price, investing in real estate in Fuengirola involves a series of additional costs that are crucial to factor in from the start, especially for a non-resident buyer.
Purchase Taxes: New vs. Resale
In Andalusia, acquisition taxes vary depending on whether the property is new or resale:
– for a resale property (most common in Fuengirola):
– Property Transfer Tax (ITP): 7% of the price;
– for a new property:
– VAT (IVA): 10% of the price;
– Stamp Duty (AJD): about 1.2–1.5%.
In both cases, the following are added:
– notary and land registry fees: around 1% of the price;
– lawyer’s fees: typically about 1% + VAT.
This results in, as an indication, the following total costs:
| Property Type | Estimated Acquisition Costs (excluding financing) |
|---|---|
| Resale | ≈ 8–9% of price |
| New | ≈ 12–13% of price |
If financing the purchase with a mortgage, add an additional 1 to 2% for appraisal, arrangement fees, bank-mandated insurance, etc.
Tax Obligations for Non-Residents
Non-resident buyers must also factor in: tax aspects, financing rules, and specific ownership conditions related to their situation.
As a property owner in Spain, you must anticipate several annual charges: IBI (local property tax), household waste tax (increased for tourist rentals in Fuengirola), and homeowners’ association fees. Home insurance is also necessary. Tax-wise, non-residents are subject to IRNR on rental income (or a deemed income if the property is not rented). Wealth tax may apply if the value of your Spanish real estate assets exceeds certain thresholds.
Upon resale, a non-resident is subject to capital gains tax (generally 19% for EU/EEA nationals) and a 3% withholding tax on the sale price (paid by the buyer on behalf of the tax authorities, settled later).
Investor Profiles for Whom Fuengirola is Particularly Suitable
Not all investors have the same objectives. Fuengirola is particularly well-suited to certain profiles.
The “Balanced Rental Yield” Investor
Objective: generate reliable rental income, with a reasonable prospect of capital gain, without taking excessive risks.
Typical strategy:
– target a 2 or 3-bedroom in Los Boliches (inland), Los Pacos, or certain central areas;
– prioritize good or renovated condition to limit works;
– opt for long-term or medium-term rental (remote workers, expats);
– aim for a gross yield of 4.5 to 6%, with low vacancy.
The “Capital Gain and Resale” Oriented Investor
Objective: buy in a growth sector, possibly with renovation potential, and hope for value increase above the average.
Typical strategy:
– look at Torreblanca, some sectors of Los Pacos, even El Boquetillo (more popular but with attractive prices);
– identify properties needing refreshing or modernization;
– take advantage of the general upward trend of the Fuengirola market, with a 5 to 10-year horizon.
The Optimized Second-Home Buyer
Objective: enjoy the property a few weeks or months a year, while renting it out the rest of the time to cover part of the costs.
Typical strategy:
For a successful rental investment in Fuengirola, prioritize an apartment near the beach in the Centro, Los Boliches, Carvajal, or Sohail neighborhoods. Opt for a property already equipped with a valid tourist license, or consider medium-term rentals (2 to 11 months), which are less subject to regulatory constraints. Finally, collaborate with a local management agency to optimize your occupancy rate and administer the property remotely.
The High-End Wealth Investor
Objective: secure a prestigious asset in a highly sought-after sector, with a long-term holding vision.
Typical strategy:
– target El Higuerón, high-end Carvajal, certain hillside villas in Torreblanca;
– accept a sometimes slightly lower percentage gross yield, in exchange for high resale potential in the long run;
– bet on architectural quality, views, rarity, services.
Why Fuengirola Remains Competitive Compared to Other Costa del Sol Towns
Compared to Marbella or even some areas of Málaga city, Fuengirola remains, despite price increases, relatively affordable for an equivalent property profile. Arguments often put forward by professionals:
The cost of living is lower than in Madrid, Barcelona, or Marbella for groceries, restaurants, and services. The quality/price ratio is interesting, with well-located 2 or 3-bedroom apartments cheaper than in Marbella. Accessibility is exceptional thanks to a direct train to the airport, a major asset for rentals. The city offers a complete urban life on a human scale: beach, shops, international schools, health facilities, and cultural events.
For an investor wanting to reconcile yield, resale liquidity, and possibility of personal use, this combination is hard to beat.
Infrastructure and Projects: An Additional Driver for Value
Infrastructure improvements play a key role in real estate valuation on the Costa del Sol. Fuengirola already benefits from:
– the Cercanías C1 train line to Málaga city center and the airport;
– road improvements on the A-7 and AP-7;
– the “Senda Litoral” coastal path project, enhancing the appeal of coastal areas;
– municipal investments (over 20 M€ in 2024) in roads, public spaces, amenities.
The Málaga airport expansion plan represents a 1.5 billion euro investment.
For an investor, it is important to remain cautious about announcements still in the study phase, but it’s clear that the overall strategy is to increase the capacity and connectivity of the Costa del Sol, which supports real estate demand in the long term.
Points of Caution Before Investing
Even if the indicators are very favorable, investing in real estate in Fuengirola requires some precautions.
Several elements deserve particular attention:
Prices are at historic highs, with expected increases of 5 to 9% per year. Regulations are tightening. Premium sectors are competitive, requiring a quick reaction. The selection of the neighborhood, the homeowners’ association (checking the rental regulations), and analysis of fees are crucial for the real yield.
For non-residents, one must also factor in: specific tax obligations.
– the need to obtain a NIE, open a Spanish bank account, and comply with local tax formalities;
– the importance of working with an independent lawyer, ideally specialized in the Málaga region and familiar with tourist rental issues;
– considering exchange rate risk if the investment is financed in a foreign currency.
Conclusion: A Promising Market, to Approach with Method
Fuengirola stands out as a top destination for real estate investors on the Costa del Sol. Between rapid price growth, strong rental demand, exemplary transport infrastructure, and quality of life, the city combines many arguments.
Key neighborhoods like Los Boliches, Torreblanca, Los Pacos, Carvajal, El Higuerón, or the city center each offer a distinct profile, ranging from balanced rental yield to ultra-premium positioning.
To take advantage of this context, the most effective approach is to:
Before investing in rental real estate, it is essential to: clearly define your objectives (yield, personal use, capital gain); target a coherent segment (e.g., studio for short-term, family apartment for long-term); precisely analyze micro-locations and their price dynamics; integrate local rental regulations from the start; and build a realistic budget including all acquisition and holding costs.
With a structured approach, a good understanding of neighborhoods, and appropriate professional support, investing in real estate in Fuengirola can offer a rare combination of profitability, growth potential, and enjoyment on one of Europe’s most sought-after coasts.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
