Estepona: The Costa del Sol’s market to watch

Strategic repositioning

Estepona is undergoing deliberate transformation. The new pedestrian boulevard on Avenida San Lorenzo, connecting the town hall to the historic centre, is designed to enhance walkability and urban cohesion. Meanwhile, a €113 million revamp of the marina is raising the bar with facilities specifically tailored to large luxury yachts by reducing the number of moorings from 447 to 288 and upgrading commercial amenities. High-impact projects such as Rafa Nadal’s €200 million beachfront development in Los Llanos are adding both substance and status to the town’s portfolio.

Financially, Estepona’s local administration has cleared over €300 million in debt and plans a 20% property tax (IBI) reduction for 2025. This is the largest cut in Estepona’s history and a cumulative reduction in IBI by 50% since 2011, a move that clearly signal investor-friendliness and fiscal stability.

The corridor between Casasola and Kempinski has emerged as a luxury engine of growth. Its panoramic views, ample land, and more permissive planning regime (relative to Marbella) have stimulated demand for premium developments like Taray, Essence, Marine Hills, and Ocyan Villas.

Price data underscores momentum

Idealista figures show a steady climb in average sale prices, now standing at approximately €3,910/m² as of July 2025, a 13% rise year-on-year, with mid-year prices hovering at €3,735/m². For context, these price levels place Estepona comfortably above Andalusia’s average of €2,236/m² but below Marbella’s €4,961/m²- highlighting its unique position as a middle-ground market with upside potential.

A resilient, diverse buyer base

Estepona is capturing interest from a broad spectrum of buyers. Families are the most dynamic growth segment, increasingly relocating full-time thanks to excellent schooling options, healthcare access, and an all-year-round lifestyle that offers more than just seasonal appeal. For many international families, Estepona represents a balance: Mediterranean living with reliable infrastructure and a safe environment to raise children.

Retirees remain a constant presence, while investors and second-home buyers—particularly from the U.S. and Eastern Europe—view the town as a safe haven in an uncertain global environment. This breadth of demand provides resilience and underpins the market’s sustainability.

Shifting motivations reflect new realities

The rise of remote and flexible work has added new dimensions to demand. Increasingly, buyers are not only seeking holiday homes but primary residences that combine lifestyle with connectivity. Requests for home offices, wellness amenities, and calm residential settings close to urban services reflect these new priorities.

Tiered opportunities and strategic plays

Estepona offers multiple layered entry points:

Selwo and Estepona West: typically €450K–€700K.
Las Mesas: €700K–€1M.
Nearby Sotogrande: robust demand for villas north of €2M.
For investors, early-stage off-plan acquisitions and renovation-to-resell strategies continue to offer compelling margins.

A market coming of age

Estepona’s trajectory is best understood as a gradual but decisive shift: from a secondary market with potential to a primary destination in its own right. Its combination of fiscal stability, infrastructure investment, and diversified buyer appeal suggests that its current growth is not a temporary surge but a consolidation of long-term value. For families, retirees, and investors alike, Estepona now offers not just promise but permanence, and that makes it one of the most significant markets to watch on the Costa del Sol