Estepona +17%: why the city in the west of the Costa del Sol is growing in price faster than Marbella

Five years ago, Estepona was called the quiet neighbor of Marbella: a beautiful old town, flowers in pots on white walls, and prices noticeably lower than on the Golden Mile. The autumn of 2026 has rewritten that picture. According to a recent Dils Lucas Fox report, published on October 22, the average asking price in Estepona reached 4,902 euros per square meter. That is 17% higher than a year ago and the best result among the major towns on the coast.

We look at what lies behind this figure, how Estepona compares with Marbella, and what the price growth means for a buyer choosing real estate on the Costa del Sol right now.

Figures that changed the map of the coast

The Costa del Sol Residential Market Outlook report by Dils Lucas Fox focuses on the premium segment, and its main conclusion is this: price growth is no longer concentrated in just one Marbella. Double-digit year-on-year dynamics were shown by three municipalities at once.

For comparison: across the province of Malaga, year-on-year growth in asking prices in summer 2026 slowed to 7.6% versus the peak 14% in September 2025. Against this backdrop, Estepona looks not just like a leader, but like an exception to the overall trend toward stabilization.

Why Estepona, specifically

A new Golden Mile. The main driver of growth is along the stretch of coastline between San Pedro and Estepona. Here, luxury developments with sea views, gated areas, spas, and concierge services are concentrated. A buyer who needs modern architecture and resort-level infrastructure finds this kind of product here, while in established areas of Marbella there is almost no free land left for new projects.

A new upper price ceiling. Estepona has long stopped being only a market for affordable apartments. Boutique projects on the beachfront today start from 6.5 million euros: for example, Biubay in the El Róquero area, with ten residences with three and four bedrooms. The appearance of such properties lifts the average price across the entire municipality and changes how the city is perceived by investors.

Buying for living, not only for holidays. Based on Dils Lucas Fox deal data on the Costa del Sol for the first half of 2025, 96% of purchases were made for primary residence. Buyers look for space for remote work, good schools, safety, and services that operate year-round. Estepona, with its lively old town, promenade, and calm pace, fits this demand.

Price-to-product ratio. For the same money as an apartment in a mature area of Marbella, in Estepona you can get a new-build property with more space, a terrace, and sea views. For many families moving to the coast for the long term, this argument is decisive.

Estepona and Marbella: the gap is narrowing

Even after a 17% surge, Estepona remains almost 18% cheaper than Marbella on average across the city. But average figures hide a wide spread. Within Marbella, Nagüeles and the Golden Mile reach 8,269 euros per square meter, while Nueva Andalucía holds at 6,249 euros. For a buyer who values the status of the address, proximity to Puerto Banús, and the classic atmosphere of Marbella, properties on the Golden Mile still remain the benchmark, and their value is determined by scarcity rather than growth rates.

The logic of the two markets is different. Marbella has become a mature market: 4.6% annual growth with a high base means stability and capital protection. Estepona is in a catch-up growth phase: it is adding to prices faster, but choosing a property there requires more careful analysis of the micro-location, the developer, and the handover timelines.

Not only Estepona: the west coast is gaining strength

Manilva took second place in growth rates, even further west: +12.7% year-on-year with an average price of about 3,029 euros per square meter. This is noticeably lower than in Estepona, so real estate in Manilva attracts those who want to enter the market earlier than the main wave of demand and are ready for a calmer, almost village-like rhythm of life by the sea and near golf courses.

The picture confirms a trend analysts have been talking about for several years: the premium market on the Costa del Sol is expanding westward, toward Sotogrande. According to valuation company Tecnitasa, Marbella, Benahavís, and Estepona together account for 95% of the expensive real estate in the province of Malaga. The coastal “golden triangle” has finally formed, and Estepona is no longer the junior partner in it.

Bubbles or a new norm

The key question investors ask is whether the market is overheated. The data points more to a shift to a calmer phase than to the risk of a crash.

Demand is still high. In the second quarter of 2026, 9,387 transactions took place in the province of Malaga, 7.7% more than in the first quarter, while across Spain overall sales fell by 5.7%. The share of foreign buyers rose to 37%, more than double the country’s average of about 16%.

Growth rates will slow down. Dils Lucas Fox’s baseline scenario assumes Costa del Sol price growth of 4% to 7% in 2027, gradually slowing to 2% to 5% by 2030. For the premium segment of Marbella, the forecast is slightly higher: 5% to 8% in 2027 and 3% to 6% by the end of the decade.

Supply remains limited. There are currently about 9,470 properties listed for more than 1 million euros and about 3,670 listed for more than 3 million euros in the province. For the international market with rising demand, this is not much, especially when it comes to beachfront homes or those with open sea views.

In other words, Estepona’s 17% growth is unlikely to repeat in the coming years, but experts also do not expect a reversal of prices downward.

What this means for buyers

New builds at an early stage. If you are considering Estepona, the greatest potential for value growth traditionally comes from buying during the construction phase. It is important to check the developer’s reputation, bank guarantees for deposits, and whether the handover timelines are realistic.

Micro-location matters most. Within Estepona, prices differ by multiples: the old town, the New Golden Mile, areas near golf courses, and hills with sea views each follow their own rules. The citywide average is useful for understanding the trend, but not for assessing a specific property.

Liquidity when reselling. Apartments and penthouses form the core of the market, and they are sold the fastest. If you are thinking about a future resale, you should consider demand for the specific format, not only its current price.

Compare with Marbella honestly. The price gap between the cities is narrowing. Sometimes it makes sense to pay more and buy an address in Marbella with established value; sometimes it is more profitable to get more space and newness in Estepona. The answer depends on how you plan to live and how many years you plan to hold the property.

The ABARZO Real Estate team selects villas and apartments in Estepona and across the entire west coast, including new projects at an early stage and properties off the open market. Tell us about your plans, and we will help compare options in Estepona and Marbella based on real deal data.

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