Studio Apartments: Big Returns from Small Spaces
Studio apartments are the most affordable entry point into Spain's property market. For investors looking to generate rental income with a modest budget, studios on the Costa del Sol offer some of the highest yields per euro invested. They are easy to manage, cheap to furnish and always in demand from tourists and digital nomads.
What Counts as a Studio in Spain
In Spain, a studio (estudio) is typically a single open-plan room combining the living area, bedroom and kitchenette, plus a separate bathroom. Size ranges from 25 to 50 sqm. Some studios have a small terrace or balcony. Studios are found in apartment buildings, apart-hotels and purpose-built holiday complexes.
Prices on the Costa del Sol
- Inland (Alhaurin, Coin): 50,000 to 80,000 EUR
- Coastal towns (Torremolinos, Fuengirola): 80,000 to 130,000 EUR
- Beachfront or town centre: 120,000 to 200,000 EUR
- Marbella/Puerto Banus: 150,000 to 300,000 EUR
Rental Yields
Studios deliver the highest percentage yields of any property type in Spain. Here is why:
- Holiday rental: A studio in Torremolinos at 80 EUR per night, booked 200 nights per year, generates 16,000 EUR gross. On a 100,000 EUR purchase, that is a 16% gross yield before expenses.
- Long-term rental: Monthly rents of 500 to 800 EUR are achievable in coastal towns. On a 100,000 EUR studio, that is 6 to 9.6% gross yield.
- Winter lets: Many Northern Europeans rent studios for 3 to 6 months over winter. Monthly rates of 600 to 1,000 EUR are common during the off-season.
Target Tenant Groups
- Holiday tourists: Couples and solo travellers who spend most of their time outside. A clean, well-located studio is all they need.
- Digital nomads: Remote workers staying 1 to 3 months. They value fast Wi-Fi and a desk more than square metres.
- Students: Near language schools or universities. Steady academic-year demand.
- Winter sun seekers: Retired Northern Europeans escaping cold winters. Reliable, low-maintenance tenants.
Advantages for Investors
- Low entry cost: Start investing from 80,000 to 100,000 EUR including purchase costs.
- Easy to furnish: A studio can be fully furnished for 3,000 to 6,000 EUR.
- Low maintenance: Small space means lower cleaning costs, fewer repairs and cheaper insurance.
- High occupancy: Studios fill faster than larger properties because the nightly rate is lower, attracting a wider audience.
- Diversification: Buy two studios in different locations instead of one apartment. Spread your risk.
What to Watch Out For
- Tourist licence: In Andalusia, you need a registered tourist licence (VFT) to offer short-term rentals legally. Check that the property qualifies before buying.
- Community rules: Some apartment communities have voted to ban short-term rentals. Always check the community minutes.
- Minimum size regulations: Some municipalities require a minimum of 40 sqm for tourist rentals. Verify local rules.
Total Cost of Investment
For a 100,000 EUR studio, budget approximately 10,000 to 12,000 EUR for purchase costs (ITP, notary, lawyer, registry) plus 3,000 to 6,000 EUR for furnishing. Total investment: around 115,000 EUR. Use our free calculator to estimate your total costs and see how quickly your studio can pay for itself.