Spain has been a cornerstone of European property investment for decades. For lifestyle, Spain remains unmatched with its safe, affordable, and relaxed Mediterranean environment. Many of its cities have been welcoming numerous foreign property buyers, from Barcelona to the Costa del Sol.
While popular areas reach price saturation in the Spanish real estate market, two regions are emerging as alternatives. Lifestyle and investment opportunities in Murcia and East Costa del Sol have been capturing international buyers' attention, with exceptional value, quality of life, and growth potential.
Emerging Destinations in Spain's Coastal Market: East Costa del Sol and Murcia
While Marbella and Málaga dominate the Costa del Sol property market, buyers and investors are increasingly turning their attention to two rising areas: the East Costa del Sol and the Murcia region.
East Costa del Sol extends from Málaga city eastward to Nerja. It positions itself as a more affordable alternative within the same coastal market. This eastern sub-market has been gaining momentum, attracting growing international interest. It is particularly sought after by northern Europeans seeking authentic Spanish coastal living.
This buyer migration reflects broader market dynamics as the western Costa del Sol reaches price saturation. The region capitalizes on Málaga's established tourism infrastructure while offering 30-40% lower entry prices.
Meanwhile, Murcia's Costa Cálida spans 250km of Mediterranean coastline, with Murcia city ranking as Spain's third most affordable provincial capital. The Murcia real estate market for foreign buyers represents exceptional value and cost-effective investment opportunities. Murcia recorded Spain's fastest-growing housing sales in 2025, with transaction volumes increasing significantly.
Currently, the region mirrors what Alicante represented decades ago, an emerging market with substantial upside potential. Buyer demographics reflect value-driven investment strategies focused on growth opportunities.
East Costa del Sol vs Murcia Property Investment: Comparing Returns and Growth Potential
According to the property yields comparison, East Costa del Sol and Murcia showcase two different investment profiles.
Property prices in Murcia average around 1,826 €/m² and remain below the national average of approximately 2,100 €/m². 
While East Costa del Sol cities, particularly right on the coast, are above the national average, they remain significantly lower than prime western Costa del Sol locations. Property prices in the eastern market typically range from 2,500-3,500 €/m², staying well below Malaga's average 4,185 €/m².
Thanks to the low entry prices, Murcia provides higher yields than the East Costa del Sol. The rental yields in Murcia typically range from 5.5-7.5% for long-term rentals and up to 8-10% for holiday lets. East Costa del Sol delivers more modest yields, with beachfront areas reaching 6.5%. However, it benefits from consistent demand from buyers and tenants looking for lifestyle properties in Spain, as well as growing digital nomad trends. Short-term rentals particularly benefit from the spillover of Málaga's tourism demand.
Both regions demonstrate strong capital growth in recent years. Murcia has often experienced a strong increase. The region's new build developments and coastal projects have been particularly robust performers. East Costa del Sol also shows strong capital appreciation, with new-build prices experiencing significant year-on-year growth.
Impact of the Upcoming Infrastructure Projects in East Costa del Sol Spain
There are planned projects and infrastructure developments that will significantly impact the eastern market. Enhanced connectivity and improved transportation links are at the core of these improvements.
A-7 coastal highway improvements are planned to be completed by 2025-2026. This will reduce travel times from Nerja to Málaga and provide better access to the airport. Meanwhile, the Málaga Metro line extension is being evaluated to serve eastern communities.
There is also the expansion of the Port of Málaga. It aims to improve maritime connections to Torre del Mar, boosting commercial activity. These infrastructure improvements and new projects are expected to have a positive impact on the East Costa del Sol real estate market, lifting property values.
Where to Invest in Spain: Murcia vs Costa del Sol
Market insights and trends in 2025 reveal distinct hotspots rising across both regions.
Best Places to Buy Property in East Costa del Sol
International buyers are increasingly targeting the Vélez-Málaga area for affordable housing compared to the West Costa del Sol market and the growing infrastructure investments. Torre del Mar and Caleta de Vélez particularly appeal to investors seeking a family-friendly environment and good rental demand from both long-term residents and holidaymakers.
Nerja and Torrox in the east command premium pricing with their laid-back environment and natural beauty. Nerja maintains the highest prices in the eastern market, with buyers seeking authenticity over luxury.
For foreign buyers seeking Costa del Sol's luxury real estate, Rincón de la Victoria is emerging as a rising star. Tenants and buyers are predominantly families and professionals seeking coastal living near Málaga city.
Best Towns in Murcia for Rental Property Investment
Murcia's standout areas are driven by rental demand and growing international interest. Cartagena leads with high rental demand, particularly from local long-term residents. Foreign investors are showing increasing interest in the historic port city.
Mar Menor commands among the highest rental prices in Murcia. It is an established tourist hotspot, supporting a strong vacation rental market and consistent price growth.
For long-term rental demand in Murcia Spain, relevant data shows Murcia City, Águilas, and San Pedro del Pinatar are the strongest performers. They deliver consistent rental occupancy rates, with demand coming from retirees, families, and working professionals.
Western Costa del Sol Value Plays
Market analysis also shows emerging opportunities in select western areas. For affordable coastal areas near Estepona for investment with growth potential, Casares and Manilva are gaining investor attention. Data reveals that these areas are benefiting from infrastructure spillover and buyer migration from saturated premium markets.
Investment Outlook: Spain's Secondary Property Markets for Foreign Investors
Foreign investment considerations remain consistent across both regions, with competitive local property tax rates throughout Spain. Non-resident buyers face standard capital gains tax, while both East Costa del Sol and Murcia property tax rates start at 0.4%. When evaluating the tax implications for foreign property owners in Murcia, investors benefit from comparatively low entry costs, resulting in lower taxes on the initial purchase. Meanwhile, East Costa del Sol offers stable tax structures within a more mature market.
The future outlook for both markets shows strong fundamentals. East Costa del Sol is positioned for steady growth with capital appreciation driven by ongoing infrastructure developments, growing lifestyle demand, and limited new supply in prime coastal areas.
Meanwhile, Murcia is leading Spain's property market growth by transaction volume and price appreciation. Value-driven investors and price-conscious buyers are driving this momentum, attracted by the region's exceptional yield potential.
Both markets demonstrate solid fundamentals supporting continued international investor interest, offering distinct investment strategies. As established Spanish coastal markets reach maturity, these emerging regions represent the next wave of Mediterranean investment opportunity for savvy investors seeking value ahead of the curve.
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