Why Estepona is the Costa del Sol’s Smartest Real Estate Bet in 2025

Just a few decades ago, Estepona was a quiet fishing village known mainly to locals and a few seasoned travellers. Fast forward to 2025, and it’s become one of the Costa del Sol’s most exciting destinations for both living and real estate investment.

Unlike larger, more crowded areas nearby, Estepona has managed to keep its charm while growing in a smart, sustainable way. The area is now recognised as a top destination for those seeking a relaxed lifestyle, high returns, and long-term value.

In this article, we explain why Estepona is the smartest real estate bet in southern Spain this year.

Rise of Estepona

Unlike some of its more high-profile neighbours, Estepona’s rise hasn’t come at the cost of its charm. While nearby areas like Marbella and Puerto Banús are known for their glamour and nightlife, Estepona offers a more relaxed, authentic vibe that appeals to a growing number of buyers.

The town’s development has been carefully planned, with a focus on walkability, sustainability, and green spaces. More than 130 streets in the Old Town have been pedestrianised and beautifully decorated with flowers and local art. The commitment to livability makes Estepona a standout choice not just for tourism, but for permanent residency and long-term investment.

Another key indicator of Estepona’s rising profile is the recent investment by Unicorn Royal Emirates, an equity investment fund based in the UAE. The firm has acquired a high-profile beachfront hotel development in Estepona, signalling strong confidence in the town’s long-term potential.

This €150 million project will feature a five-star hotel, a range of upscale residences, and a suite of luxury amenities. Not only is it expected to attract tourists, but it also aims to draw in new residents, especially those seeking a permanent or a second home on the Costa del Sol.

Why Buyers Are Choosing Estepona Over Marbella

While Marbella has long been the face of luxury on the Costa del Sol, Estepona is quietly catching up as more and more buyers are turning to Estepona for a better balance of value and modern lifestyle. Here’s why:

• Lower prices: Property in Estepona costs significantly less per square metre than in Marbella. Buyers get more space, better views, and new homes for their investment.
• Faster growth: Estepona’s real estate prices and rental yields have grown quickly, with strong demand from both local and international buyers.
• Authenticity: Unlike some resort towns that feel overdeveloped, Estepona keeps its Andalusian soul alive. Whitewashed houses, colourful flowerpots, and a beautiful small-town vibe make everyday life feel special.
• Remote-work appeal: The area is increasingly popular with digital nomads and remote workers. Fast internet, a mild climate, and a relaxed lifestyle make Estepona an ideal base for freelancers and remote workers.

Quality of Life

Estepona isn’t just developing for tourists—its changes are designed to benefit year-round residents. The Bulevar Parque Central project is a shining example: a large-scale urban renewal that will introduce parks, underground parking, and pedestrian zones designed around sustainability and accessibility.

Then there’s Starlite Music World, a landmark entertainment project that will feature a 15,000-seat auditorium, hotel, conference centre, and more. It promises to promote local culture, job creation, and economic growth.

Meanwhile, Estepona continues to shine with:

• Over 320 days of sunshine
• Safe public spaces and clean, family-friendly beaches
• Michelin-star restaurants, beach clubs, and boutique hotels
• International schools and bilingual education options

This mix of leisure, culture, and everyday convenience makes Estepona one of the most well-rounded places to live on the Costa del Sol.

Where to Buy Property in Estepona?

Here’s a quick summary of some of the best areas for real estate investment in Estepona.

• Seghers – Close to the marina with sea views and quiet streets.
• Old Town – Authentic charm, walkable, and full of local culture.
• Casasola – This beachfront area near Marbella is one of Estepona’s most exclusive locations.
• El Paraíso – An upscale area in Eastern Estepona extending from the coast to the golf valley, offering a range of apartments, townhouses, and villas for all budgets.
• New Golden Mile – Modern villas and penthouses by the sea.

To learn more, check out our blog on the best residential areas in Estepona.

Rental Income Potential

Estepona’s rental market is growing, thanks to rising demand from both tourists and long-term residents.

Key Highlights

• Rental prices rose significantly between 2023 and 2024.
• High occupancy rates on platforms like Airbnb, especially for properties close to the sea.
• Homes with modern design, sea views, or pools are especially popular.

Tips for Investors

• Prioritise homes with tourist licences for short-term rentals.
• Check community rules to avoid restrictions on holiday rentals.

New Developments to Watch

Currently, Estepona is home to some of the most exciting new developments on the Costa del Sol. These projects combine resort-style amenities and strong investment potential. Here are a few to keep an eye on:

• The Edge
• Taray Residences
• The Seven
• Las Mesas Homes
• Tyrian Residences
• Zenity Azure Estepona
• Naya Residences

Each project offers a mix of sustainability, luxury amenities, and strong potential for capital appreciation.

To view all the new projects, go to our new developments listing page.

Estepona Market Forecast for 2025

Looking ahead, Estepona’s market fundamentals remain strong and stable.

• Interest rates are expected to drop in the second half of 2025, improving mortgage conditions.
• Property prices are rising steadily—currently averaging around €4,017/m².
• The population is increasing, especially among retirees, young families, and remote professionals.
• New construction is well-regulated, avoiding the overbuilding seen in some other parts of Spain.

These trends suggest that Estepona is set to remain a growing property market in 2025.

Estepona as a Long-Term Investment

Estepona isn’t just a place to buy a holiday home—it’s a smart move for long-term stability. In today’s uncertain world, many buyers see Estepona as a way to diversify their investments, hedge against inflation, and a lifestyle that’s hard to find in Europe.

Compared to other European cities, Estepona stands out for several reasons:

• Better weather year-round
• Low taxes compared to other European countries
• Strong rental yields and consistent demand
• A well-managed city that continues to evolve without losing its identity

Unlike speculative or overhyped markets, Estepona’s growth is based on genuine demand, new infrastructure developments and a growing international community.

So, who should be looking at Estepona in 2025?

• Retirees looking for a peaceful, sun-soaked lifestyle
• Families looking for a peaceful space, good schools, and security
• Digital nomads in search of balance between work and leisure
• Investors focused on long-term returns and rental income
• Second-home buyers who want more than just a tourist hotspot

With high-quality new homes, solid rental income, and a growing international community, Estepona offers something for everyone.

Final Thoughts

The real estate market here is still on the rise. Buying now means locking in value before prices climb further. Most importantly, Estepona’s growth is built on real demand, not speculation. This makes it a safer long-term bet than many “boom-and-bust” destinations. So, if you’re planning to move here permanently or simply looking to invest, then Estepona is one of the smartest bets you can make on the Costa del Sol.