Algarve vs Marbella: what does a luxury home really earn?
| What we measure | Algarve | Marbella |
|---|---|---|
| Nightly rate, high season | €820 | €900 |
| Nightly rate, low season | €360 | €380 |
| Nights sold, high season | 85 | 80 |
| Nights sold, low season | 65 | 60 |
| Total nights sold per year | 150 | 140 |
| Gross annual income | €93,100 | €94,800 |
| What an agency takes | 30% | 30% |
| Net, self-managed on a platform | €78,700 | €80,100 |
| Net, through an agency | €65,200 | €66,400 |
All figures on this page are shown in euros, on both sides, so the two columns can be compared. The individual market pages show local currency.
The number that actually changes the answer
An agency in either market takes about 30% of what the guest pays, before a single bill is settled. Manage the property yourself on a platform and you lose about 15.5%. On these numbers that is €78,700 net in Algarve and €80,100 net in Marbella, self-managed. The fees also stack: an agency that then lists your property on a platform hands the platform its cut too, and total commissions above 40% are common.
The two markets do not earn their money the same way
Algarve sells 85 nights at €820 and 65 outside the peak. Marbella sells 80 at €900 and 60 outside it. Marbella concentrates its year into fewer, more expensive nights. Algarve spreads it across more of them. The annual totals can land close together while the risk does not: the concentrated market punishes a lost peak week far harder than the longer season does. Which of the two you want depends on whether the property has to pay for itself, or merely help.
Because it is the most misleading number in this business, and it is the one every other site quotes. An occupancy rate of 50% sounds moderate. Multiply it by 365 and you have implied 182 nights sold. A seasonal home does not sell 182 nights. It sells the weeks people want and stands empty the rest of the year, and nobody is even trying to rent it in November. The occupancy model overstates seasonal markets by roughly a factor of two. We count nights actually sold, and nothing else.
What we know here, and what we are still estimating
Both benchmarks on this page are our estimates, built from comparable markets and public rate data. They are not yet confirmed by an operator who set the prices and paid the staff in Algarve or Marbella. We label them that way rather than pretend to a certainty we do not have. If you own in either market and tell us what you actually earned, this page gets better and you get to see where you truly sit.
Which of the two is your home in?
Three questions and we will tell you what yours specifically can earn, not what the market average earns. Free, and free permanently.
Estimate my home →Questions owners ask about these two markets
Does a luxury home earn more in Algarve or in Marbella?
They are close enough to call it level. A 4-bedroom home grosses roughly €93,100 a year in Algarve and €94,800 in Marbella, a difference of about 2%, which is smaller than the difference between a good operator and a bad one in either market. Choose on purchase price and on how much you want to use it.
How many nights a year does a home actually rent in Algarve and Marbella?
About 150 in Algarve and 140 in Marbella, on our benchmark. Nights sold, not occupancy. We never quote an occupancy percentage because multiplying one by 365 flatters a seasonal market by roughly a factor of two: the home is not on the market for most of the year, and nobody is trying to sell it in November.
Is Algarve or Marbella the better investment?
This page cannot tell you, and anyone who claims it can is selling you something. Rental income is one half of a yield. The purchase price is the other half, and it varies more between two streets than it does between two countries. A high gross on a very expensive property is frequently a worse investment than a modest gross on a cheap one. Get both numbers before you decide.
What does an agency take in Algarve compared to Marbella?
About 30% in Algarve and about 30% in Marbella, of everything the guest pays, before a single bill is settled. Self-managing on a platform costs about 15.5%. Nobody publishes these figures because every party in the chain benefits from the owner not knowing them. Our team has worked both sides of that trade, which is how we know.
Estimates are based on destination benchmarks and property attributes, not on a formal appraisal. Amounts are shown in local currency using approximate conversion rates. Actual results depend on marketing, pricing strategy and seasonality. Last updated 08/08/2026.