Rising demand for properties on Costa del Sol thanks to ‘digital nomads’
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Demand for properties by “digital nomads” on the Costa del Sol has grown 40% in recent years, mainly long-term rentals in luxury villas and apartments. The rise is supported by the increasing popularity of telecommuting, says newspaper“Malaga Hoy.
What is a ‘digital nomad’
Digital nomads can carry out their work location-independent thanks to the Internet and their laptops. Since the COVID19 pandemic, more and more employers have also become more flexible in the way their employees perform their jobs. Thus, many workers also take this opportunity to perform their jobs abroad, which has led to a sharp increase in the number of digital nomads.
The profile of the digital nomad who chooses the Costa del Sol is young and belongs to Generation Z and millennials, according to a recent study by the Junta de Andalucía. In addition, the agency’s research shows that 70% move as a couple. Thus, there is a need to adapt not only tourism products but also real estate offerings to the requirements of couples and families.
On the other hand, a survey by the platform“Flatio” (rental platform) shows that more than 50% of digital nomads are under the age of 40. As for their preferences, proximity to the coast (46.6%) and the presence of the sun are determining factors in choosing their destination. So these requirements make the Costa del Sol ideal for digital nomads all year round.
40% more demand for housing for digital nomads Costa del Sol
Other research shows that a 40% increase in demand for housing for digital nomads was recorded on the Costa del Sol. Especially in the long-term rental of luxury villas and apartments in the Golden Triangle, which includes Benahavis, Estepona and Marbella.
Reasons for this increase
Besides the fact that workers are increasingly free to choose where to work (both due to the Internet and the increasing flexibility of employers), the main reasons that more and more people are staying on the Costa del Sol are the following: the climate, the strategic location and the high quality of life.
Besides this, the visa for digital nomads and the Startup Law 028/2022 cannot be overlooked:
Digital nomad visa
The digital nomad visa, new to Spanish law, also offers workers from outside the European Economic Area (EEA) a legal route to reside and work in Spain for extended periods. With benefits such as faster processing and requirements tailored to the needs of remote workers, this visa positions Spain as one of the most sought-after destinations for digital nomads worldwide.
Startup Act
The Startup Law 028/2022 is a law aimed at encouraging emerging entrepreneurship by facilitating administrative procedures and providing tax incentives.
The combination of these things caused a huge boom in the number of digital nomads moving to the Costa del Sol.
Explosion of property searches on Costa del Sol
The most striking discovery in the study was a 2,400% increase in searches for the digital nomad lifestyle over the past five years in Spain. A clear sign of the growing interest in this lifestyle.
How projects on the Costa del Sol respond to this
Numerous projects on the Costa del Sol offer co-working spaces that provide all the necessary facilities to telecommute. In addition, of course, telecommuting can be done at your own desk.
Impact on investors
Although digital nomads often stay on the Costa del Sol for extended periods of time, they are still tied to their country of origin. Mostly by family, friends and, of course, their jobs that are still there. Digital nomads on the Costa del Sol therefore often choose to rent for longer periods rather than buy property. This has greatly increased the demand for rentals, which benefits investors who have rental properties on the Costa del Sol.
Conclusion
With more flexible employers and new laws, more and more people are choosing to telecommute on the Costa del Sol. These digital nomads are looking for good weather, coast and enough facilities to work remotely. Because they are still tied to their home country, they often choose to rent rather than buy for longer periods of time, which is good news for investors with rental properties.
Based on an article from Malaga Hoy
FAQs
A digital nomad is a person who can work remotely thanks to the Internet and their laptop, allowing them to work from different locations. The term became best known during and after the COVID-19 pandemic.
The Costa del Sol is becoming a popular destination for digital nomads because of factors such as its climate, strategic location, high quality of life and availability of luxury accommodations for long-term rental.
According to a study by the Junta de Andalucía, the digital nomads who choose the Costa del Sol are mainly young individuals from Generation Z and millennials. Moreover, 70% of them move as a couple.
The increasing flexibility of employers in terms of remote working, the attraction of the climate and lifestyle of the Costa del Sol, and the implementation of measures such as the digital nomad visa and the Startup Law 028/2022 have all contributed to the rising demand.
The digital nomad visa is a new legal provision in Spanish law that allows workers from outside the European Economic Area (EEA) to reside and work in Spain for extended periods of time. It offers benefits such as faster processing and requirements tailored to the needs of remote workers.
Numerous projects in the Costa del Sol offer co-working spaces with all the necessary facilities to work remotely.
