The area of Benissa and Moraira, on the Costa Blanca, has established itself as one of the most attractive destinations for real estate investment aimed at holiday rentals. The climate, safety, high-quality beaches, international demand and a shortage of supply in high season make 3 and 4 bedroom villas one of the most cost-effective options on the market.
In this analysis you will find real figures of income, occupancy levels, prices per week, estimated ROI and the keys to maximise the profitability of a villa for tourist rental.
Benissa Costa and Moraira receive a steady stream of visitors from Northern Europe, the United Kingdom and Scandinavian countries. The high season is not limited to July and August: from April to October the area maintains a high occupancy, especially in family villas.
Key Market Data:
Prices vary depending on several factors such as location, condition of the villa, sea views and distance to beaches such as El Portet, Baladrar or La Fustera.
3 bedroom villas
4 Bedroom Villas
Modern, refurbished or panoramic view villas can easily exceed these ranges.
Depending on the quality, location, and occupation, annual gross income can be:
Luxury villas with a heated pool, sea views or near El Portet can exceed €65,000 per year.
To estimate the profitability of an investment for holiday rentals, the following formula is used:
ROI = (Annual Revenue – Annual Expenses) ÷ Purchase Price × 100
Example 1: 3-bedroom villa
Purchase price: 450.000 €
Annual income: €30,000
Expenses: 8,000 € (management, cleaning, maintenance, insurance, electricity)
ROI = (30,000 – 8,000) ÷ 450,000 × 100 = 4.8%
Example 2: Refurbished 4-bedroom villa
Purchase price: 650.000 €
Annual income: €45,000
Expenses: 10.000 €
ROI = (45,000 – 10,000) ÷ 650,000 × 100 = 5.4%
An ROI of more than 5% is considered excellent for prime areas of the Mediterranean.
Villas that offer the following facilities generate more bookings and better prices:
Improving these aspects can increase revenue by 15% to 30%.
To rent a villa as holiday accommodation it is mandatory:
A good manager can take care of all these procedures.
Avoiding these mistakes can increase annual ROI significantly.
Investing in a 3 or 4 bedroom villa in Benissa or Moraira is one of the most profitable options within the Costa Blanca real estate market. The combination of high tourist demand, rising rental prices and prolonged occupancy throughout the year makes this type of property a solid investment, with an estimated ROI between 4.5% and 6.5%, depending on the villa and its management.