Welcome to the Garden of the Costa del Sol and one of the most popular places to buy a home on the southern Mediterranean coast. On this page we will talk about Estepona’s real estate market, discuss property prices in Estepona and provide a guide to the best locations available for purchasing properties in 2022.
Estepona is a pretty town on the western end of the Costa del Sol between Manilva and Marbella. Once a small fishing and farming enclave, the resort now ranks as one of the most popular places for second home purchases and family holidays. It’s also a favourite with relocators looking for a quieter and cheaper place to live than Marbella but within easy reach of Malaga Airport.
Estepona property market
As a result, the Estepona real estate market is one of the busiest on the Costa del Sol and has experienced a strong rise in prices and sales over the last three years. Consequently, properties in Estepona offer excellent potential for capital appreciation and rental returns, whether those are holiday lets or long-term rentals.
Quick Estepona facts
But before you start your search for Estepona property, the facts.
Population: around 72,000
Foreign population: around 17,300 (24%; largest group from the UK)
Distance to Malaga Airport: 76km
Average property price (Q1 2022): €1,996.20 (up 12.9% in year)
Property sales in 2021: 3,137 (up 24.7% on 2020)
We suggest you take these four steps:
Take a look at the best areas to buy in Estepona – remember the three most important considerations in any real estate purchase are location, location and location.
Check out the investment potential – after all, whatever you buy, resale or new properties in Estepona, it’s worth getting insight into the real estate market and Estepona property prices in 2022.
Look for a property in Estepona – browse our listings to find out what’s on the market right now and whet your appetite for this lovely corner of the Costa del Sol.
The areas to buy property in Estepona
Estepona is located in the heart of the Costa del Sol in close vicinity of the prestigious town of Marbella.
Obviously, your first step is to decide where you’d like to buy in Estepona. While the resort isn’t particularly big, it does offer plenty of varying locations that suit different buyer profiles. Your final choice will depend on your must-have list and whether you’d like to be beachside, town centre or in the mountains.
Our area guide divides the different locations via buyer profiles.
If you’d like more insight and some expert insider knowledge, do get in touch – we’d love to share our experiences to ensure you choose the real location for your new home.
Beachside Estepona property
With 21km of coastline, there’s plenty of scope if you’re looking for beachfront property for sale in Estepona. The most popular areas to buy (from west to east) are:
Playa Bahia Dorada – at the far west end, this is one of Estepona’s most-established beachfront areas and home to apartment and townhouse complexes.
Costa Natura – just west of the town centre and on quiet beaches, this area is home to Elba Estepona Hotel and Costa Natura naturist resort as well as high-end apartment complexes and avant-garde new construction including The Edge.
Punta Plata – to the east of Estepona town centre, this is one of the most select postcodes for luxury property in Estepona. The Kempinski Hotel Bahia sets the trend, followed by exclusive developments such as Mar Azul, Bahia de la Plata and Alcazaba Beach. So, if you’re looking for properties for sale in Estepona’s New Golden Mile, Punta Plata is a good place to start.
El Velerin – plenty of new development is underway in this emerging hotspot on the New Golden Mile, already home to some of the most luxurious real estate in Estepona in developments such as Emare and Los Granados Playa.
Casasola – at the far eastern end with Marbella next door, villas in this residential area have frontline beach positions.
Estepona town centre property
If you like the idea of being closer to the town centre and having its amenities on your doorstep, you may wish to consider the following areas:
The heart of Estepona – after its facelift, the centre of the old town presents attractive streets and squares, and a tranquillity not easy to find in other resorts. As well as having access to amenities, you’re within easy walking distance of the seafront and beaches.
Seghers – located on the doorstep of the Port, this is a well-established area where you’ll find older homes as well as new properties in Estepona. New construction includes some of the best developments on the Costa del Sol such as Ikkil Bay.
Estepona property in the country
The resort boasts stunning scenery along its coastline with a mixture of high mountains in Sierra Bermeja and rolling hills in the east. Buying property slightly away from the coast gives you panoramic views and an escape from the crowds in high season. The following areas are the most popular (west to east):
Valle Romano Golf – if you like the idea of frontline golf living, take a look at the property on this course, one of the best places to find Estepona apartments for sale.
Altos de Estepona – one of the most elevated residential areas in the town, sweeping views are a given from all properties here, mostly apartments and townhouses.
La Concha and Resina Golf – also with a lofty position, this area offers a good choice of new construction as well as La Resina Golf course.
Cancelada – centrally placed on the New Golden Mile to the east of the town centre, this residential area is popular with families, local and international, and offers excellent amenities.
Nueva Atalaya and El Paraíso – at the eastern end of Estepona and with Marbella and Benahavis next door, these well-established residential areas offer a range of properties, including townhouses and villas with some new construction. They’re also home to two veteran golf courses, Atalaya Golf and El Paraíso Golf.
Investment potential for properties in Estepona
With its more traditional and family-friendly vibe, Estepona makes less noise on the Costa del Sol property market than neighbouring Marbella. The town is known for its excellent planning policies that encourage developers, Spanish and international, to invest in the resort. For their part, private buyers also find many motivating factors that persuade them to purchase in Estepona.
Also, unlike Marbella, planning procedures for new properties in Estepona are straightforward and free of the legal issues that plague Marbella, next door. As a result, you’ll find an excellent choice of new developments and at more wallet-friendly prices.
But, as well as smooth planning practices, what other factors add to the investment potential in Estepona?
Huge investment from the town council
For the last decade, Estepona town council has invested heavily in improvements to the resort. They range from significant infrastructure upgrades to new car parks via a total revamp of the old quarter. The council has also built new facilities for residents such as sports centres and parks.
Put simply, Estepona in 2022 bears little resemblance to the town ten years ago.
And there’s more in the pipeline. For example, work is currently underway to create streamlined access to the port from the town centre with an iconic library and cultural centre on the seafront.
These numerous upgrades add to the town’s appeal, both to new residents and holidaymakers and as a result, they’ve boosted Estepona property prices. They also increase the potential for capital appreciation.
Attracting high-end design and brands
Estepona is home to the only Kempinski hotel in southern Spain as well as other top-branded hotels such as Senator and Las Dunas. In addition, the first Ikos all-inclusive resort in Spain opened in Estepona in summer 2021 and Mett Hotel and Beach Resort joins the 5-star list in 2022.
Similar cutting-edge contemporary architecture is seen in new properties in Estepona too. The latest developments include sustainable construction and state-of-the-art tech in their avant-garde designs. We think the best examples are those at The Sapphire, Ikkil Bay and The Edge.
The latest design additions add to the prestige of luxury property in Estepona and boost its investment potential.
Strong demand in the market
Sales of Estepona property increased exponentially in 2021 compared to 2020, which despite the pandemic, saw higher sales than 2019. The resort has one of the busiest markets on the Costa del Sol with sustained demand, particularly from wealthy foreign buyers.
In addition, Estepona has solid inventory levels of new builds, under construction and in the pipeline. This guarantees a steady supply for the demand.
Property prices in Estepona
The evolution of property prices in Estepona has been positive in recent years. In 2018, the average price of a square metre of housing in Estepona was 1,879 euros, which represented an increase of 11% compared to the previous year. The highest prices were recorded in the months of July and August, with an average price per square metre of 2,087 euros.
In 2019, the average price of a square metre in Estepona increased by 6% to 1,986 euros. The highest prices were again recorded in the months of July and August, with an average price per square metre of 2,193 euros.
According to a recent report by Idealista, the average price of a property in Estepona was €2,112 per square metre in 2020. This is an increase of 5.4% from 2019, when the average price was €1,999 per square metre. The report also predicts that prices will continue to rise in 2021-22, reaching an average of €2,200 per square metre.
The trend in property prices in Estepona is therefore positive, with prices increasing year on year. The highest prices are always recorded in the summer months, making Estepona an ideal location for a holiday home. If you are thinking of buying a property in Estepona, now is a good time to do so. Prices are expected to continue to rise in the coming years as demand for properties in the area increases.
Solid capital appreciation
Estepona property prices in 2022 have continued their upward trend. The square metre price reached €1,996.20 in Q1, a 12.9% increase on the same period in 2021.
Prices still remain slightly below their 2007 peak, however. At the end of 2021, they were 5.5% lower, demonstrating the almost full market recovery and dynamism yet to come.
Consolidated rental markets
The scenario also presents strong potential if you’re buying Estepona property as a buy-to-let investment.
Buy-to-let Estepona for holiday rentals
Tourism in the resort is on the rise and it’s an ever-increasing favourite with families drawn to the town’s attractions. With 320 days of guaranteed sunshine a year, you can expect strong returns from Estepona holiday lets for at least six months of the year.
Buy-to-let Estepona for long-term rentals
The resort is a firm favourite with relocators who prefer the lower rental prices in Estepona rather than in next-door Marbella. As a result, property demand is booming and monthly rental rates rose by 7.2% in 2021.
Types of properties for sale in Estepona
Unsurprisingly for a resort of Estepona’s standing and popularity, there’s a huge variety of property for sale.
New properties in Estepona
As one of the most dynamic markets for new construction on the Costa del Sol, Estepona offers an excellent choice if you’re looking to buy new or off-plan. On the market or in the pipeline are apartments, townhouses and villas, and in various locations.
The resort also has a buoyant market for resales. You’ll find some of the best variety of Estepona houses for sale on the New Golden Mile and in other residential areas to the east of the town centre.
If you’re looking for resale apartments, take a look at the areas such as El Paraiso and Cancelada, also good places to check out townhouses.
Discover Estepona apartments for sale right now.
Luxury property in Estepona
Marbella and Sotogrande may rank as the most exclusive areas of the Costa del Sol, but this resort comes a close second. You’ll find stunning beachfront property for sale in Estepona, including villas to rival those in prime locations in Marbella.
Much of the new development includes high-end fixtures and fittings with sustainable construction on a par with the very best. But of course, property prices in Estepona are lower, giving you more value for money in practically the same setting as Marbella.
See properties for sale on Estepona’s New Golden Mile.
There are, of course, dozens of real estate agents in Estepona, many of whom offer excellent services. But if you’re looking for a professional with insider knowledge and a comprehensive understanding of the market and its conditions, we suggest you contact us.
Why make us your Estepona property agent?
We believe we make the right choice for the following reasons:
Solid track record
We have well over 15 years’ experience in helping people find the home that moves them on the Costa del Sol. We’ve seen the market’s ups and downs during this time and learnt to listen to its heartbeat. We’ve also acquired expert knowledge of each area and know its pros and cons.
Excellent listening ear
Our mission is to find you the home to move you and to do this, our first priority is discover exactly what you’re looking for. We listen carefully, make notes and then take action. And then repeat this process until we find your ideal home.
Firm guiding hand
The Spanish buying procedure is probably very different from your home country, but we make it as straightforward as possible. We provide clear explanations so you understand every single step and know exactly what to expect and when.
We work for you and in your interests. That’s why you can count on us at any time to offer advice, help and information.