As Israelis continue to look beyond their borders for investment opportunities and lifestyle destinations, Spain’s Costa del Sol is emerging as a top choice. Known for its sun-soaked beaches, upscale developments, and growing expat communities, this region in southern Spain offers more than just great real estate. For many Israeli investors and Jewish families, Costa del Sol is becoming a home away from home, with a vibrant Jewish community, accessible amenities, and strong investment potential.
A Growing Jewish Community
One of the lesser-known aspects of Costa del Sol is its thriving Jewish community, especially in cities like Marbella and Torremolinos. With synagogues, kosher restaurants, and cultural events, Jewish expats and investors can feel a sense of belonging while enjoying all the region has to offer.
“There’s something incredibly comforting about knowing you can find a community that shares your values, even in a foreign country,” says David Los, CEO of Hometailor, a real estate firm specializing in new developments and luxury properties in Costa del Sol. “Many of our clients are looking for not just an investment but a lifestyle change, and Costa del Sol offers them that opportunity while staying connected to their heritage.”
Indeed, the presence of synagogues and kosher markets in Marbella allows for seamless integration into the local Jewish community. From regular Shabbat services to Jewish cultural events, the area has created a welcoming environment that appeals to those seeking a second home or long-term investment.
Why Israeli Investors Are Choosing Costa del Sol
Israelis are increasingly diversifying their real estate portfolios, and Costa del Sol, with its excellent climate, strong tourism sector, and rising property values, is a perfect fit. The area has long been a favorite of international buyers, but Israeli interest has surged in recent years.
David Los from Hometailor, who has helped numerous Israeli investors find their dream properties in Spain, says, “Costa del Sol is a unique market because it offers both lifestyle and financial gains. Investors can enjoy a holiday home for part of the year, then rent it out during high season and generate excellent returns. It’s a win-win.”
According to data from the local property market, the Costa del Sol region has seen a steady increase in property prices, with demand for luxury homes and new developments outpacing supply. The area’s strong rental market, driven by year-round tourism, also makes it a prime target for investors seeking both short-term and long-term returns. With cities like Marbella, Estepona, and Mijas seeing a consistent flow of holidaymakers, many Israeli investors are opting to buy properties they can both enjoy and rent out when they’re not in residence.
A Thriving Real Estate Market
The local property market offers a diverse range of options, from beachfront apartments to expansive villas nestled in the hills. Prices range from affordable new developments to multi-million-euro luxury estates. What makes Costa del Sol particularly attractive is the potential for growth; as demand increases, so do property values.
“With the right guidance, investors can find properties that have significant potential for appreciation,” explains David Los. “At Hometailor, we pride ourselves on helping clients identify those opportunities. Whether it’s a newly developed apartment in a trendy part of Marbella or a luxury villa in the hills, we tailor our service to meet the needs of each individual buyer.”
Case Study: Jardines de Las Lagunas
One such example is the Jardines de Las Lagunas development in Mijas Costa, just a short drive from Marbella. This new project offers a range of properties starting from €267,900. With its proximity to the beach, modern design, and access to local amenities, it has already garnered interest from Israeli buyers.
Based on data from Hometailor’s market insights, a one-bedroom apartment in this development could generate around €22,300 annually in rental income, with an average nightly rate of €96 and an occupancy rate of 63%. This translates into a potential annual ROI of approximately 8.32%, based solely on rental income.
This is just one example of how carefully selected investments can offer strong returns while providing an enjoyable place to stay for family vacations. And with property values in Costa del Sol rising steadily, the potential for capital appreciation further enhances the attractiveness of the region for investors.
The Long-Term Outlook
Real estate experts like David Los believe that Costa del Sol is a long-term play for investors. “In many cases, by the time you’ve received the keys to your property, its value has already appreciated by 20-25%,” he notes. “This kind of growth isn’t typical in most markets, but Costa del Sol is unique because of its international appeal, consistent tourism, and the overall lifestyle it offers.”
Indeed, the year-round warm weather, stunning landscapes, and cultural richness of Costa del Sol make it a standout choice for those looking to invest or relocate. And unlike many European destinations, Costa del Sol enjoys a high season that extends well beyond the summer months, making it even more attractive for those looking to generate rental income throughout the year.
Practical Advice for Israeli Buyers
Buying property abroad comes with its challenges, and Israeli buyers should be aware of the legal and tax implications before making a purchase. This is where working with a trusted real estate expert like Hometailor can be invaluable.
“We work closely with local lawyers and tax advisors to ensure that our clients are fully informed and comfortable throughout the buying process,” says David Los. “Whether it’s navigating Spain’s property laws or understanding how taxes apply to foreign investors, we’re here to guide our clients every step of the way.”
A Home Away from Home
For many Jewish families and Israeli investors, Costa del Sol represents more than just a sunny vacation spot. It’s a place where they can feel connected to both their heritage and a thriving international community. Whether you’re looking for a retirement home, an investment property, or simply a new place to experience life’s pleasures, Costa del Sol has something to offer.
“We’ve seen so many clients fall in love with the region,” says David. “They come for the investment, but they stay for the lifestyle.”
If you’re considering investing in Costa del Sol, Hometailor can help you navigate the market and find the property that best suits your needs. With over 200 new developments available, there’s something for every type of investor, from holiday homes to long-term rental properties.This article was written in cooperation with Hometailor