DevelopmentsUpdated 27 March 2026

Does the size of a development affect investment value?

Quick Answer

Development size affects community fee efficiency, management infrastructure quality, and resale market depth. Medium-sized developments of 50 to 150 units typically offer the best balance of professional management, reasonable fees, and diverse buyer appeal.

AI Summary

1Developments of 50 to 150 units offer the best balance of management quality, fee efficiency, and resale market depth
2Very small developments (under 25 units) often have high per-unit community fees and insufficient management infrastructure
3Very large developments (over 300 units) can feel less exclusive and face longer absorption in the resale market
4Development size affects the quality of communal areas: larger schemes can fund better pools and landscaping
5The number of units available for rental at any one time affects the local short-term rental market for your property

Key Takeaways

Medium-sized developments of 50 to 150 units offer the best balance for most buyers
Small developments have higher per-unit community fees due to fixed costs spread across fewer units
Large developments provide efficient fees but can feel less exclusive and face more resale competition
Phase planning is critical in large developments: understand how long adjacent construction will continue

The size of a development in Spain has a direct effect on several investment factors. Very small developments of 8 to 20 units often have insufficient scale to fund professional property management, resulting in higher per-unit community fees and less reliable maintenance. Very large developments of 300 or more units can create a denser, less exclusive atmosphere that reduces resale appeal to premium buyers and may face longer absorption periods in the resale market. Medium-sized developments in the range of 50 to 150 units typically offer the best balance: sufficient scale to fund proper management and amenities efficiently, while maintaining a sense of community and quality control that large schemes sometimes lack.

Small developments: intimacy at a cost

Small developments of 8 to 25 units offer exclusivity, a strong sense of community, and often high-quality finishes justified by the premium positioning of a boutique scheme. However, the fixed costs of property management, pool maintenance, garden upkeep, and security are spread across fewer units, resulting in higher per-unit community fees. A security guard who costs 60,000 euros per year spread across 12 units represents 5,000 euros per unit per year just for that one service. The same guard spread across 100 units costs 600 euros per unit.

Large developments: efficiency at the cost of character

Large developments of 200 or more units benefit from economies of scale in management and can fund impressive communal facilities like multiple pools, sports facilities, and full-time concierge services at reasonable per-unit fees. However, they can feel more like hotel complexes than residential communities, which reduces their appeal to the premium buyer profile that drives top resale prices. The resale market for individual units within a 300-unit development includes more competition from other sellers within the same complex.

Medium developments: the optimal range

Developments in the 50 to 150-unit range consistently perform best across the key metrics. They have sufficient scale to fund professional management and attractive communal areas at reasonable fees, while remaining small enough to maintain a quality character. The resale market is active but not so saturated with competing units that it depresses prices. For rental purposes, a medium development is large enough to attract professional management companies but small enough to maintain rental rates without excessive internal competition.

Phase considerations in large developments

Many large developments on the Costa del Sol are built in phases, with Phase 1 selling first followed by later phases as the development progresses. Early phase buyers sometimes find their completed property surrounded by active construction during later phases, which affects enjoyment and can temporarily reduce rental rates. When evaluating a large phased development, ask for the complete build-out plan and timeline to understand how long your property may be adjacent to construction activity.

Common Mistakes to Avoid

Choosing a very small development based on exclusivity without calculating community fees

Request the projected community fee budget per unit and compare it to similarly sized apartments in medium developments. The exclusivity premium often comes with a fee premium that directly reduces net yield.

Not asking about future phases in a large phased development

Buying in Phase 1 of a 400-unit phased development means you may be surrounded by active construction for 4 to 8 years. This affects both your enjoyment and short-term rental income.

Real-World Example

A buyer considers three developments: a boutique 12-unit project at 4,800 euros per month community fees per unit, a 90-unit mid-size development at 280 euros per month, and a 350-unit large development at 180 euros per month. The 12-unit exclusivity premium comes at a cost of over 55,000 euros more per decade in community fees than the 90-unit development. The 90-unit development delivers the best balance of management quality, reasonable fees, and resale market depth.

Reviewed by

Olga Gorshkova· Costa del Sol Property Specialist

Updated 27 March 2026

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