Málaga Province is an enormous area, incorporating vast swathes of beautiful Mediterranean coastline, villages, towns and cities, each with their own special unique character and charms. Unless you are familiar with a specific area or have a previous preference, the sheer scale of choice makes it difficult to decide where you should buy your dream home. From the magnificent apartments for sale in Málaga city centre to the relatively undiscovered coastline of Casares and the pretty inland villages, there is a rich seam to be picked, when considering where to buy your luxury penthouse or luxurious villa.
To help you narrow down your search, let’s look at Estepona. Located on the western side of the Costa del Sol, Estepona is a vibrant coastal town which has long been a favourite destination amongst Spaniards. However, over the years it has quietly been gaining recognition amongst a wider audience who are impressed by its beautiful beaches, affordable properties and traditional unspoilt character.
In addition to its many traditional charms, Estepona is currently a hot topic amongst savvy investors, as it is undergoing a metamorphosis, that could see it shortly eclipse its larger more famous neighbour Marbella.
Málaga’s first low emission zone
Estepona has seen extensive investment over the last decade, which can be seen in the recently completed 1.5km beachfront promenade, the longest in Spain. The development of promenade is part of Estepona’s drive towards becoming Málaga’s first low emission zone, which also includes wider pedestrianisation and renovations throughout the town. In addition, the council has created 2,000 low-cost parking spaces (costing only 1€ per day) to minimise traffic.
Hotel investment
There is no shortage of luxury hotels in the Estepona area, and in recent years there has been considerable investment. In 2023, it was revealed that IKOS Resort Group invested over 17€ million to revamp and expand theIkos Andalucia on the New Golden Mile, Estepona. More recently, the luxury residential and hotel experts,Unicorn Royal Emirates, the luxury residential and hotel experts, paid 40€ million to acquire the 5-star Santa Marta hotel project located on the eastern side of Estepona. The part-built beachfront project is earmarked for completion in 2027. The entire investment upon completion is expected to be in the region of 150€ million. All of this activity confirms why now is a right time to take a closer look at properties to buy in Estepona.
Starlite Estepona
The local government has recently confirmed that the Starlite Music of Estepona is of ‘strategic interest’. The City of Music and the Audiovisual City would be located in La Panera area and would attract an estimated 286€ million of investment. Plans include the creation of recording studios, TV and film sets with storage and warehouses, boulevards, lakes, restaurants and auditoriums big enough to accommodate up to 15,000. Blue prints also include a 200-room hotel and a conference centre. This will not only place a spotlight on Estepona for creative enterprise and entertainment opportunities, it’s creation will also provide 450 jobs.
Starlight Occidental, the world-famous music, fashion, culture and gastronomy festival, is held every year in Marbella. This new project would allow the promotors to relocate the event from the current location above Marbella to Estepona.
What are the returns when you buy property in Estepona?
Statistics published by real estate portal, Idealista, report record year on year rent rises in Estepona. Great news for investors, but not so good for tenants, as rental rates have increased by a year-on-year rate of 34.9%, and in Q1 2024 alone, there has been an extraordinary increase of 10.8%. In March 2024, the average of residential property in Estepona is pegged at 15.87€ per square metre, as compared to 13.55€ in the same period in 2023 and 10.66€ in 2022. Similarly, average sale price of residential properties in Estepona has seen a dramatic rise from 3,094€ in March 2023 to 3,557€ per square meter in March 2024.
Of course, it isn’t just Estepona which is benefiting from increased investment, the entire province of Malaga will see increased investment of 615.6 million in 2024. This represents a 32% increase upon the 466.6 million invested in 2023. The increase was announced at a press conference at the beginning of April by Caroline España, the PP Party’s regional Minister for Economy, Finance and European Funds.
Whether you’re looking for your dream home or an investment property on the Costa del Sol or you would like further details of our hand-picked properties to buy in Estepona, your real estate agent should be your first port of call, in order to arrange those crucial early viewings.
Contact Myriam on Myriam@mdrluxuryhomes.com.
BE +32 476 211 233
ES +34 663 329 202
