Did you know that Marbella’s average property prices have surged by almost 70 percent since 2019? This remarkable growth has reinforced its position as one of Europe’s leading luxury destinations. For those considering relocating to the Costa del Sol, choosing between Estepona and Marbella can be a challenging decision. Each offers its own appeal, from distinctive architecture and lifestyle opportunities to unique investment potential. In this article, we will compare both markets in detail, covering property prices, market conditions, buyer demand and long-term growth prospects. Whether you are searching for a permanent residence, a holiday home or an income-generating investment, this guide will help you make an informed choice.
Market Overview: Marbella vs Estepona Property Prices and Demand
Marbella remains the flagship destination for luxury living on the Costa del Sol. Average prices hover around €5,000 per square metre, but in the most exclusive areas such as the Golden Mile and Puente Romano, prices can exceed €30,000 per square metre. Estepona, on the other hand, has experienced significant growth in recent years, with average property values rising steadily. In the broader Golden Triangle region, which includes Marbella, Estepona and Benahavís, sales of luxury homes exceeded 8,700 units in 2024, reflecting both strong international interest and robust local market performance. Estepona’s year-on-year price growth, averaging between 12 and 15 percent, signals its increasing status as a high-value destination.
Buyer Profiles and Market Trends
Marbella continues to attract a highly international buyer base, with around 90 percent of luxury property purchases made by overseas clients. Interest comes from diverse regions, including the United States, Northern Europe and the Middle East. Many buyers are drawn to Marbella’s established reputation for luxury amenities, fine dining, high-end shopping and exceptional beach clubs. Estepona has been attracting a slightly different demographic, including younger entrepreneurs, digital nomads and those seeking a more relaxed environment while still being within easy reach of Marbella’s vibrant social scene. Both markets are benefiting from a growing demand for sustainability-focused developments, smart-home features and properties that cater to year-round living.
Supply, Development and Emerging Areas
While Marbella’s demand remains strong, the supply of new-build properties is limited due to restrictions on development and high land values. This shortage has contributed to continued price growth and increased competition among buyers. Estepona, in contrast, has more available land for new developments and has been investing heavily in infrastructure, including an upgraded seafront promenade, improved road connections and cultural facilities. Beyond these two cities, areas such as Casares Costa, Manilva and the hills of Ojén are gaining recognition for offering modern developments, attractive pricing and long-term appreciation potential.
Investment Potential and Rental Yields
From an investment perspective, Marbella has shown consistent growth over the last decade. Since 2019, property prices have increased by approximately 72 percent, with annual growth rates of around 10 to 14 percent in recent years. In the first quarter of 2025, the Golden Triangle’s average asking price reached €4,260 per square metre, representing a 12 percent year-on-year rise. Estepona’s growth trajectory is also promising, with a combination of new high-quality developments and improving infrastructure attracting both investors and end-users. Rental yields remain competitive in both markets, typically ranging between 3 and 5.5 percent, with higher returns achievable for modern villas and apartments in prime locations due to strong short-term rental demand.
Why Choose Marbella Estates?
Marbella Estates offers unmatched expertise and insight into the Costa del Sol property market. With years of experience helping clients navigate both Marbella and Estepona, the agency provides buyers with a clear understanding of each area’s strengths, ensuring decisions are based on accurate data and market knowledge.
Their proven track record of success is reflected in the high number of satisfied clients and completed transactions across the region. In 2024 alone, luxury home sales in the Golden Triangle generated over €3.2 billion, and Marbella Estates has played a key role in securing prime properties for international buyers within this competitive market.
Foreign buyers benefit from Marbella Estates’ tailored strategies, which include guidance on identifying the best investment opportunities, understanding local legal and tax requirements and leveraging growth trends such as branded residences and eco-friendly developments. This personalised approach ensures that each client receives recommendations aligned with their lifestyle goals and financial objectives.
The agency’s support extends far beyond the transaction itself. Marbella Estates offers comprehensive assistance, from the initial property search through to negotiations, legal processes and post-purchase services such as property management and rental marketing. Their network of trusted partners ensures a seamless experience, whether clients are purchasing a primary residence or building a rental portfolio.
Above all, Marbella Estates combines a passion for property with a commitment to delivering value, security and peace of mind. By choosing them, buyers gain not only access to the region’s most desirable properties but also the guidance of a team dedicated to their success.
FAQs
Is now a good time to buy in Marbella or Estepona?
Yes, both markets present strong opportunities. Marbella offers long-term stability, a well-established luxury scene and consistent international demand, which supports both capital growth and rental returns. Estepona, while less expensive in some areas, is experiencing rapid development and infrastructure improvements that are likely to drive further price increases. Buyers looking for immediate prestige may prefer Marbella, while those seeking strong future appreciation and potentially better value for money may find Estepona appealing.
Are international buyers influencing prices?
International demand is a major factor in both markets, particularly Marbella, where overseas buyers account for around 90 percent of transactions in the luxury sector. These buyers often seek properties with unique features, prime locations and high-end amenities, which can drive prices upward in sought-after areas. Estepona is also experiencing an increase in foreign interest, especially from buyers attracted by its combination of quality developments, modern facilities and comparatively lower entry prices.
Which is better for lifestyle: resort areas or emerging zones?
Established resort areas like Marbella’s Golden Mile offer immediate access to world-class restaurants, designer boutiques, golf courses and beach clubs. These locations are ideal for buyers seeking an active social lifestyle and a property that will hold its value. Emerging areas such as Estepona’s new beachfront developments or the hillside communities of Casares Costa can provide a quieter atmosphere, more space for the same investment and strong growth potential as these areas continue to develop.
What kind of rental income can I expect?
Rental yields in Marbella and Estepona typically range from 3 to 5.5 percent, depending on property type, location and amenities. Modern villas and luxury apartments close to the beach or golf courses tend to perform particularly well, especially during the summer season. Properties with features like private pools, high-end finishes and proximity to popular attractions can command premium weekly rates. Short-term holiday rentals remain in high demand throughout the year, particularly in Marbella, making it possible for owners to achieve both consistent occupancy and attractive returns.
How can Marbella Estates help foreign buyers?
Marbella Estates provides a complete, end-to-end service tailored to the needs of foreign buyers. This includes sourcing properties that match each client’s requirements, arranging virtual or in-person viewings, providing clear guidance on the purchase process, and introducing trusted legal and tax professionals. They also assist with post-purchase considerations such as furnishing, renovation, and securing rental licenses. This comprehensive approach allows international clients to purchase with confidence, knowing they have expert support at every stage.
Conclusion
Choosing between Marbella and Estepona depends on your priorities. Marbella offers a globally recognised luxury lifestyle, a stable investment environment and an unmatched range of amenities. Estepona, while more affordable in many areas, is on a strong growth path with expanding infrastructure and a vibrant property market that continues to attract attention from savvy buyers.
Whichever destination aligns with your vision, partnering with Marbella Estates ensures you will receive professional guidance, market insight and personalised service. Their expertise can turn your property search into a smooth, rewarding experience.
If you are ready to explore the best opportunities on the Costa del Sol, contact Marbella Estates today and take the first step towards securing your dream home in Spain.
