The investment potential of the Costa Tropical of Granada
The Coast of Granada, which stretches from Nerja in the west to La Rábita in the east, is an increasingly popular destination for foreigners to settle, to buy a second home, or in which to invest. In recent years, there are several developments that took place, and there are some more interesting developments that will happen in the near future, which will make the Costa Tropical an even more attractive place to invest. Some of which are the following:
The Autovía del Mediterráneo motorway
The most important development that increased the value of properties on the Costa Tropical was the completion of the motorways along the east and south coast of Spain from Barcelona to Cádiz, and the motorway of Granada itself.
In 2009, the motorway from the capital of Granada to the coast was completed. This made Madrid, the airport of Granada, the city of Granada with its Alhambra Palace and the ski slopes of the Sierra Nevada even closer to the Costa Tropical. It currently takes 40 minutes to reach the Alhambra and the city, 55 minutes to reach the airport and 70 minutes to the ski slopes. This makes it a viable option for people working in Granada to live on the coast to enjoy the better climate and quality of life here.
In 2015, the last part of the Autovía del Mediterráneo/A7 in the province of Granada was opened, herewith completing this section of the highway in Andalusia. It is now possible to get from Salobreña to the airport of Málaga in under an hour. For those of you who need to travel frequently, this makes commuting much easier. That also means that the N340 is now only being used by local traffic, providing tremendous relief to the area.
The completion of the Autovía del Mediterráneo/A7 to the Granada-road and to Almeria, places the Costa Tropical at a very strategic point between Málaga, Granada and Almeria.
New yachting harbours on the Coast of Granada
In 2021, the Costa de Granada has approved the plans to build 3 new marinas that will add 2,000 moorings to the province Granada, where we have less than 500 moorings in total, compared to for example the province Málaga with almost 5,000 moorings. This is very good news as the Costa Tropical is in need of additional mooring space since both the marinas in Motril and Marina del Este in La Herradura have reached their maximum capacity. The dozens of previous projects to add more moorings to the Costa Tropical were called off due to the economic crisis in 2008 or due to urban planning regulations.
Two of these marinas will be private, the ones in Almuñécar and Playa Granada, the one in Motril will be developed by the Port Authority of Motril. The project of the Port of Motril is the one which, a priori, is taking the lead into provoking a tourist revolution on the Costa Tropical with a dock, surrounded by commercial and leisure facilities, similar to Malaga's Muelle Uno.
Rental potential of real estate
Potential rental income is an important factor to bear in mind when making your purchase decision especially if you are planning on only using your home in the winter or for periodic holidays. Many of our villas for sale are currently successful holiday rentals. These villas earn significant returns that cover a good portion of the mortgage costs and ongoing expenses.
Since the beginning of the COVID-pandemic crisis, property prices in Spain increased with 5%. In 2021, Andalusia had a return on rental income of approximately 6.0%, which is lower than the national average of around 6.5% – dragged down by the province Málaga (4.9%). The province Granada (7.6%) is placed is in the top 4 Spanish provinces with the highest return-on-investment in terms of gross rental income.
At Cumbre Villas, we are also offering our clients a rental and property management service so we can handle everything for you from finding your dream home up to generating rental income.