The region you choose determines a large part of your result. Rental demand, price development and regulation all differ by location. So the choice needs to follow your objective: income, growth, or a combination.
Costa del Sol #
One of the most established regions for property investors. Strong international demand, good letting potential and extensive infrastructure.
Marbella, Estepona and Málaga attract visitors year round, which produces a stable letting market rather than a three-month season. Entry prices are the highest of the three main coasts, and so are the nightly rates.
This is where the winter letting market is strongest, which materially changes annual occupancy.
Costa Blanca #
Known for the combination of good access and relatively lower entry prices. A broad audience of holidaymakers and winter residents, good letting potential particularly seasonally, and considerable variety across price brackets.
Alicante, Benidorm and Jávea are consistently popular with foreign buyers. Alicante and Murcia airports both serve the region with direct flights from most UK airports, which matters more for a letting property than people realise.
Costa Cálida #
The quieter option in the Murcia region, with lower entry prices than either of the above. Less mass tourism, which cuts both ways: less competition for guests, but a shorter and thinner season in some parts.
Worth looking at where the entry price is the constraint, or where you want a larger property for the same money.
What about the islands and cities? #
The Balearics operate in a higher segment with limited supply and higher purchase prices, focused on exclusive letting. Madrid and Barcelona have a different dynamic entirely, with strong long-term rental demand from residents, expats and students.
Both can work. Neither is where we operate, so we would rather point you elsewhere than pretend otherwise.
Making the choice #
Holiday letting needs a tourist location. Long-term letting fits cities better. Capital growth tends to be strongest in desirable areas with limited land to build on.
And regulation differs by region, with direct consequences for what you are allowed to do. That belongs in the decision, not after it.
Practical points #
Check the local letting rules first. Look at flight connections from your own nearest airport, because you will use them. Analyse actual supply and demand rather than headlines. And factor in what is being built nearby, which affects both your view and your competition.
In short #
There is no single best region. There is a best region for your particular objective, and working out which one that is takes twenty minutes of honest conversation about what you actually want.
Last reviewed 2026-08-24
Want this checked against your own situation?
A 20 minute call with a specialist in the region you are looking at, at no cost to you.