Buying Renovation Properties on the Costa del Sol and Inland: A Smart Investment Opportunity

Renovating a property in the Costa del Sol: things to consider

At Sol Sereno Estates, we know that buying renovation properties on the Costa del Sol and inland areas offers unique opportunities for both buyers and investors. Renovation projects allow for customization, potential value increases, and often lower upfront costs compared to new or ready-to-move-in homes. However, it’s important to weigh the benefits and challenges carefully when considering these types of properties.

Why Invest in a Renovation Property?

Renovation properties, whether along the sunny coastline or in charming inland towns like Coín, offer buyers the chance to secure a property at a more affordable price while adding personal touches and potentially increasing the value substantially. With the right investment and planning, you can transform an older or outdated property into a modern, stylish home or rental asset.

Costa del Sol Renovation Opportunities: Coastal Charm Meets Potential

The Costa del Sol is well-known for its luxurious lifestyle, and renovation properties in coastal towns such as Marbella, Estepona, or Benalmádena come with many advantages. You can find older properties in prime locations that might need modern updates but offer immense potential.

For example:

• Marbella (Old Town): Traditional Andalusian homes with courtyards can be purchased starting from around €400,000. After a well-planned renovation, properties in this area often reach well over €1 million, offering strong return potential.
• Estepona: A townhouse in need of restoration may cost around €350,000, with renovation expenses estimated between €50,000 to €150,000, depending on the scope. Once renovated, these homes often become highly sought after by international buyers looking for second homes.

Inland Renovation Projects: Authentic Living in Andalucia

Inland areas like Coín, Mijas Pueblo, or Alhaurín el Grande provide a different but equally appealing experience. Here, buyers can find larger properties with sprawling land, ideal for anyone seeking more privacy, a slower pace of life, or agricultural ventures.

Example opportunities:

• Coín: A rural finca or cortijo in need of renovation can start from as low as €150,000. These properties often include large plots of land and require substantial work but can be turned into stunning countryside retreats or boutique guesthouses. Renovation costs typically range from €100,000 to €300,000, depending on the extent of work.
• Alhaurín el Grande: Village homes are available starting from €200,000. Renovations are often cosmetic and cost around €40,000 to €100,000, depending on personal taste and scope. Once restored, these homes can fetch considerably higher prices due to the growing popularity of inland living among international buyers.

Key Considerations When Buying a Renovation Property

1. Location, Location, Location: Always prioritize the location, even for renovation projects. Properties close to the beach, with good transport links, or within easy reach of amenities, tend to provide better returns after renovation. Coastal properties typically see faster appreciation, while inland properties offer more space and tranquility.
2. Budget Planning: Ensure you have a clear budget that includes not just the purchase price but also renovation costs, taxes, and any unforeseen expenses. It’s essential to hire a reliable contractor and obtain quotes upfront.
3. Licenses and Regulations: When buying older properties, particularly inland, be aware of local planning permissions. Some rural properties may have restrictions on the extent of renovations allowed. It’s critical to consult with professionals who are familiar with the local planning laws to avoid legal issues.
4. Condition of the Property: The cost and complexity of a renovation can vary greatly depending on the current condition of the building. Structural issues such as roofing, plumbing, or electrical systems might significantly add to the costs, so a thorough survey is recommended before making any commitments.
5. Financing Options: While renovation projects often have lower purchase prices, securing a mortgage for them can sometimes be more complicated. We can guide you through the process and help you understand the options available, whether you’re purchasing outright or need financing.
6. Resale and Rental Potential: Whether you’re renovating to live in the property or to sell it on, consider the resale potential. Properties in areas with high demand—such as Marbella, Benalmádena, or inland towns like Coín—are more likely to yield a good return. Likewise, if you’re planning to rent it out, proximity to tourist attractions, beaches, and amenities is crucial.

Pros and Cons of Buying a Renovation Property

Pros:

• Lower Purchase Price: Often, these properties come at a discount compared to move-in-ready homes.
• Customization: Renovate the property to your own taste, adding personal touches and modern updates.
• Potential for Appreciation: With the right improvements, you could see a significant increase in the property’s value.
• Income Generation: Many buyers turn renovated properties into successful holiday rentals, especially along the Costa del Sol.

Cons:

• Unforeseen Costs: Renovations can sometimes uncover unexpected issues, such as structural repairs or compliance upgrades, which could drive up the cost.
• Time-Consuming: Renovations often take longer than planned, particularly when dealing with older properties that may require specialist materials or work.
• Regulatory Hurdles: In some cases, obtaining the right permits can be a lengthy and complicated process, especially in rural or protected areas.
• Financing: Banks may be hesitant to finance renovation projects unless you have a solid plan in place.

At Sol Sereno Estates, we specialize in helping clients find the perfect renovation properties along the Costa del Sol and inland. With our local expertise, we guide you through the process, from finding the right property to connecting you with reliable architects and builders. Whether you’re looking for a coastal retreat or an inland haven, we’re here to help turn your vision into reality.