Nestled along Spain’s sun-drenched Costa del Sol, Estepona has quietly transformed from a sleepy fishing village into a vibrant destination that’s capturing the attention of both investors and holiday makers. Known as the "Garden of the Costa del Sol," this charming town blends traditional Andalusian allure with modern amenities, making it an irresistible spot for those seeking relaxation, adventure, or a smart investment. As of March 2025, Estepona’s star is undeniably on the rise, fueled by a booming real estate market, a thriving tourism sector, and ambitious local development projects. Here’s why Estepona is becoming a top choice for discerning travelers and savvy investors alike.

A holiday maker’s paradise
Estepona’s appeal to holiday makers lies in its perfect mix of natural beauty and cultural richness. With over 21 kilometers of coastline, the town boasts some of the region’s most pristine beaches, including Playa del Cristo and La Rada, both proudly waving the coveted Blue Flag for their cleanliness and facilities. The Mediterranean climate delivers more than 325 days of sunshine annually, creating an idyllic setting for year-round escapes. Whether it’s swimming in crystal-clear waters, strolling along the scenic beachfront promenade, or savoring fresh seafood at a seaside chiringuito, Estepona offers a quintessential Spanish coastal experience.

Beyond the beaches, the town’s whitewashed old quarter charms visitors with its narrow, flower-lined streets and quaint plazas, like the picturesque Plaza de las Flores. The marina, bustling with tapas bars and restaurants, adds a lively modern touch, while cultural attractions such as the Orchid House and a variety of local museums provide a glimpse into Estepona’s heritage. For families, nearby water parks like AquaMijas and wildlife adventures at Selwo Aventura ensure there’s something for everyone. Holiday makers also benefit from Estepona’s proximity to major hubs—Malaga Airport is just an hour away, and Gibraltar Airport is even closer—making it an accessible retreat for Europeans and beyond.



The town’s tourism appeal isn’t static; it’s growing. Recent upgrades, including a 1.5-kilometer beachfront promenade—the longest in Spain—and plans for expansive cultural projects like the Starlite Music City, signal Estepona’s ambition to rival its glitzier neighbor, Marbella. These developments enhance its draw, ensuring that holiday makers return season after season.

An investor’s goldmine
For investors, Estepona represents a golden opportunity in a real estate market that’s heating up. Property prices have been climbing steadily, with a notable 15% increase in residential sales prices from March 2023 to March 2024, reaching an average of €3,557 per square meter. Rental rates have surged even more dramatically, up 34.9% year-on-year in 2024, with an average of €15.87 per square meter as of early 2025. This growth reflects skyrocketing demand, driven by both tourism and a rising number of expats and retirees seeking a permanent slice of paradise.



The town’s new-build sector is particularly enticing. A wave of modern developments, featuring 2-, 3-, and 4-bedroom apartments, luxury penthouses, and stylish villas, has reshaped Estepona. These projects boast innovative designs with open-plan layouts, eco-friendly features, and stunning Mediterranean views, appealing to a broad market—holiday homes for short-term rentals, long-term residences for retirees, or investment vehicles for capital appreciation. The New Golden Mile, stretching between Estepona and Marbella, is a hotspot for luxury villas and apartments, while areas like Estepona Golf and the Seghers district command premium prices due to their exclusivity and amenities.

Estepona’s investment potential is bolstered by significant infrastructure spending. The local government has poured millions into pedestrian-friendly zones, low-emission initiatives, and affordable parking, enhancing livability and accessibility. High-profile projects, such as the €150 million Santa Marta five-star hotel and residential complex, slated for completion by 2027, and the €286 million Starlite Music City, underscore the town’s upward trajectory. These developments not only elevate Estepona’s profile but also promise to drive property values higher, making it a compelling alternative to pricier Marbella.

The rental market is another key draw. With a 190% increase in rental prices since 2014, Estepona leads Spain in rental growth, fueled by a supply shortage and robust demand from tourists and remote workers. Investors can tap into both the lucrative short-term holiday rental market and the growing long-term rental sector, offering flexibility and strong returns.



Why Estepona stands out
What sets Estepona apart is its ability to balance authenticity with progress. Unlike some overdeveloped coastal towns, it retains its Spanish soul—think flamenco echoing through the streets and daily fish auctions at the port—while embracing modernity with sleek new builds and world-class facilities. Its location, framed by the Sierra Bermeja mountains and the sea, creates a microclimate that enhances its appeal, while its relative affordability compared to Marbella makes it a smart buy.

For holiday makers, Estepona delivers an authentic yet accessible escape, with activities ranging from golfing on renowned courses to hiking in the nearby mountains. For investors, the combination of rising property values, high rental yields, and ongoing development projects signals a market ripe with potential. The post-pandemic shift toward spacious, tranquil living has only accelerated this trend, as remote workers and retirees flock to the Costa del Sol.