Marbella Rental Evolution

Hacienda La Española for rent

The rental evolution in Marbella Market




Marbella’s luxury rental market has evolved in recent years and has become increasingly sophisticated. Demand for high-quality rental properties increased significantly, not only increasing offers to tenants in the luxury segment, but also improving service and quality standards. Today we have a little talk with Luís Ponce, CEO founder and owner or Marbella Mountain Resort (MMR), Luís will share with us his thoughts about the property rental in Marbella.



As a real estate developer, CEO and owner of Marbella Mountain Resort I have seen the evolution of Marbella’s property rental. Here in this blog, I want to share my own observations where you’ll find almost all points of view: from a renter’s and owner’s perspective, as well I’ll give you all some advice for owners on why the industry is booming and how to maximize revenue in the current situation.



The Changing Marbella Luxury Rental Market



The rental market for luxury villas and apartments in Marbella is currently at its peak. This has led to very high rental prices, occupancy rates and associated revenues, as well as the fact that demand is rarely strong. Marbella is a luxury destination, but for most of its modern history its rental market has been overshadowed by property development and sales. Focusing on the latter, realtors tended to downplay the rental segment.

Marbella pet friendly villas for rent
Marbella pet friendly villas for rent

Here’s a little of my own experience:


I moved to Marbella few years ago, my family and I, we rented a spacious villa in which to live as a family and use as the base from which to work, but soon encountered couple of things I didn’t expect before:


  • Properties not suitable to rent for longer term periods (average 6 months or above)


  • Many of the renting agents did not provide the level of service required – their main idea was “the sale” more than an enjoyable experience.


What happened to me, as example:


We rented a villa for a very high sum. In theory, it should have been luxurious, when we met the reality of the villa the property had lots of construction defects and we suffered from a complete lack of support and service from the agents. We then ended up moving and rented a large and supposedly luxurious apartment in one of the best areas of Marbella, then again, it was a total disappointment, which resulted in a huge bill.


Taking into consideration these personal experiences, it led me to the conclusion that the rental market on the Costa del Sol was overpriced and was still lacking in being able to provide up to date luxury homes, sufficient support services and even properly professional rental management. Insufficient digitization and many other key elements to provide the real “luxury rental” experience.



Witnessing the transformation of the “luxury rental”

Over the past few years, the situation for luxury rentals in Marbella has improved significantly, thanks to:


  • A new generation of stylish and modern villas, apartments and penthouses has entered the market to meet the needs of today’s clients.


  • The sale of key-ready properties equipped, fitted and decorated to the required standard



  • The growing availability of such properties for upmarket rentals, as their owners and/or investors increasingly become aware of the income potential



  • The arrival of professional new specialist firms such as Marbella Mountain Resorts, that set the bar to a whole new local and international level.



The result is a fast-developing, new-generation market dedicated to luxury rentals that is not only making this activity more appealing than ever before, as well it took into account the growth of the local market, that has become the perfect complement to the luxury properties, causing the “all included” Marbella experience. Why moving away if you can get all to fulfill your needs and rent a place that you can call “second home” at the same time?



Why Has the Luxury Rentals Market in Marbella Developed?


Many factors have led to the development of Marbella’s luxury rentals market. For ‘guests’, the incentives of renting a private home are many:

Let’s review the economic perspective: the cost is lower than the equivalent of a luxurious hotel. Renting a private villa has nice perks: privacy, more space, the ability to use a kitchen and cook breakfast or bring a personal chef, the pleasure of being a ‘host’ and inviting friends over for a barbecue, as well as being child and pet friendly, and enabling clients to bring a nanny if they may consider it appropriate.


Other reasons for the development of the industry I can think of:


  1. Insufficient hotel accommodation


The rapid development of this industry has resulted in a boom in limited hotel accommodation offered by Marbella’s 65 hotels and 14,055 rooms. It is supported by the presenting tourism market.


  1. The “covid” Impact


After the pandemic many people decided to migrate and choose a lifestyle in desirable places like Marbella. Overall, people demand quality, luxury places to be at, and most important: a high quality long and medium term rental places.


  1. Improved service and standards


In addition to the high-end rental market and strong demand for a new generation of high-quality real estate, this segment has a new level of professional service and concierge management, with greater hospitality than the real estate sector.This evolving landscape and superior returns. Given that, many buyers, even luxury properties, are much more open to renting out their properties than they used to be, leaving properties to professional organizations such as Marbella Mountain Resorts.

Hacienda La Española for rent

How to Rent a Luxury Property in Marbella

There are several reasons to rent a property. To generate rental income and keep the house from becoming a liability. It also helps in properly managing/maintaining the property throughout the year. Finally, renting provides contact with potential buyers, as guests who rent luxury properties are typically high net worth individuals. Many owners now earn 5-8% total ROI during his 5 months season and also enjoy the right to use the residence for the rest of 7 months.



In summary, Marbella’s luxury rental market is not as strong as it is now. Offering high-end rentals combined with concierge services suddenly becomes of real interest to owners of such properties. It’s a mature sector and it’s suddenly very attractive… But like anything, if it’s worth doing, it’s worth doing well. Start with working with people who will definitely make this a great success.

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