Is Buying to Rent Still Worth It in 2025? My Honest Take Based on ROI Trends
By George Nayda
13 May 2025
7 min read
STRATEGIC INVESTING
Is Buying to Rent Still Worth It in 2025? My Honest Take Based on ROI Trends
Buy-to-rent in 2025 isn’t dead but it’s not automatic either. If you're aiming for reliable ROI in Spain, you’ll need more than hype. You’ll need data, foresight, and a clear rental strategy.
Why Buy-to-Rent Isn’t Dead, It’s Just Smarter Now
Let’s clear the air. You’ve probably heard about Spain:
"Rental laws are too strict"
"Everyone’s overpaying"
"Airbnb is oversaturated"
And while some of that is true, here’s the real play:
Buy-to-rent is still alive in 2025 just not for speculators.
The old model of buying anything with sea views and tossing it on Airbnb no longer guarantees returns. Strategic investing now means:
Knowing your yield goals
Matching them to your buyer type
And stress-testing the numbers before you fall in love with a listing
Think fewer impulsive buys. More chessboard thinking.
The ROI Math: Marbella vs Benahavís vs Estepona
Let’s look at how the three most popular zones for strategic buyers stack up in 2025:
Location Long-Term Rental Short-Term Rental Capital Growth (YoY)
Yield (Net) Yield (Net)
Marbella 3.5% - 4.2% 5.6% - 7.1% 9 - 12% overall;
5 - 7% luxury
Benahavís 3.2% - 4.0% 5.0% - 6.5% 8 - 10% overall
Estepona 3.8% - 4.5% 5.8% - 7.5% 15% overall;
20%+ in hotspots
What this tells us:
Estepona leads in capital appreciation and strong short-term rental yields, especially in coastal micro-zones.
Marbella offers a balanced return with high liquidity and reputation, but certain areas are oversaturated.
Benahavís is steady, with long-term upside and lower volatility, good for buyers preferring privacy and premium build quality.
In short, the ROI conversation isn’t just about one metric. It’s about blended performance, tailored to your risk tolerance and investment timeline.
All figures above reflect 2024–2025 benchmark averages, compiled from AirDNA, Idealista, Fotocasa, Tinsa, and local market reports. Figures represent filtered net yield and capital growth estimates based on real rental performance and transaction data across Q1 2024 to Q2 2025.
3 Strategic Rental Models That Still Work
You don’t need 50 properties. Just one well-aligned asset.
Here are the plays strategic buyers are using:
1. Hybrid Rental Approach
Long-term in the low season, short-term in the peak
Ideal in areas like Riviera del Sol or Nueva Andalucía
Requires dual licenses + flexible layout
2. Guaranteed Yield New Builds
Developers offering 5% net yield for 2 - 3 years (I don't recommend this approach, feel free to ask me why not)
Often in serviced apartments near golf resorts or beach zones
Good if you want turnkey + predictability (for x period of time)
3. Relocator Rentals
Medium-term housing near international schools
Targets expats, digital nomads, and medical tourists
Fewer tourist restrictions, more stable demand
Want the 2025 ROI cheat sheet for these zones? Send me a message, and I will send it over
Red Flags That Strategic Investors Avoid
Here’s where many buyers lose money (and sleep):
Buying on emotion instead of data
ROI dies when you fall for the view, not the numbers.
Forgetting license & tax implications
Some zones now block STR licenses entirely. Others add 19% VAT.
Assuming passive income without factoring in management
STR managers take 15 - 35%. That’s not passive. That’s a partnership.
Ignoring the exit strategy
Can you resell this unit easily in 3 - 5 years? Or will it sit?
Smart investors don’t just ask how much they can make.
They ask what could break the plan.
My 2025 Investor Map (and What I’m Watching Closely)
If I were building a new investment portfolio in 2025, here’s where I’d look:
Estepona outskirts: capital growth + mid-range rental demand
La Cala de Mijas: low supply, family-friendly STR zone
Lower Benalmádena: price-accessible with year-round demand
San Pedro / Guadalmina Alta: relocator magnet with long-term upside
And I’d avoid for most:
Most of Puerto Banús (too crowded, overpriced)
Overbuilt areas near Fuengirola’s centre
Anything where licensing is murky or STRs are banned
In short, I’d build around function, yield, and exit, not just aesthetics.
How to Move Forward Without Getting Burned
Here’s how I see it:
Yes, buying to rent is still worth it in 2025.
But it’s a game for thinkers, not speculators.
You win by:
Picking the right micro-location
Running proper ROI projections (based on net, not gross)
Having a clear rental strategy from day one
If this all feels like a lot, it is. That’s why most investors stall.
But here’s the difference: strategic buyers use clarity as their unfair advantage.
When we work together, I help you:
Align your risk profile to the right property type
Break down realistic rental projections (not brochure hype)
Navigate licenses, taxes, and local traps
Run stress-tested ROI models before you book a flight
I don’t believe in pressure sales. But I do believe in buyer clarity.
So if you’re considering a rental-focused property and want to map out your best options, let’s talk.
You bring the vision, I’ll help you build the numbers behind it.
Ready to build your plan?
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