Estepona Real Estate Market Trends for 2025: What Buyers and Investors Need to Know
Introduction
Estepona has rapidly emerged as the jewel of the Costa del Sol. Where traditional Andalusian charm meets modern infrastructure and investment potential, Estepona is capturing the attention of international buyers like never before. But what can investors expect in 2025?
As we move through the year, the Estepona property market continues to outpace broader economic patterns, driven by growing international demand, new development projects, and a changing demographic of buyers. From luxury beachfront apartments to family-friendly villas in quieter inland neighborhoods, Estepona is thriving.
This article explores the key real estate trends shaping Estepona in 2025. We will look at price forecasts, popular investment areas, market insights from experts, and legal considerations for foreign buyers. If you're thinking about buying property in Estepona, this guide offers the information you need to make confident, informed decisions.
Overview of the Estepona Property Market in 2025
The property market in Estepona has started 2025 with strong momentum. Property sales volumes have risen by approximately 12 percent in Q1 compared to the same period last year. This growth is largely fueled by increasing interest from international buyers and lifestyle-driven relocations.
Several factors are contributing to this surge. The post-pandemic shift toward remote work has encouraged more digital nomads and entrepreneurs to relocate to Southern Spain. Northern European buyers, particularly from the UK, Germany, and Scandinavia, remain prominent in the market. Retirees also continue to be a key demographic, attracted by Spain’s excellent healthcare system, favorable climate, and quality of life.
Estepona’s continued investment in urban infrastructure, sustainability, and public services is another major driver. With its revitalised town center, improved coastal areas, and increased amenities, Estepona is now considered one of the most livable towns on the Costa del Sol.
Property Price Trends and Forecasts
In 2025, property prices in Estepona are seeing steady upward movement. The average price per square meter for apartments now stands at approximately €3,100. Townhouses are averaging around €3,450 per square meter, while villas especially those close to the beach can command over €4,800 per square meter.
On a year-on-year basis, prices have grown between 8 to 10 percent, with some new developments and prime locations exceeding that average. Beachfront properties and those located on the New Golden Mile are in especially high demand, and this is reflected in their premium pricing.
There is a noticeable price difference between properties located along the coast and those further inland. Beachside homes typically command 20 to 30 percent more than similar properties in areas such as Selwo or Cancelada.
Looking ahead to the second half of 2025, most analysts agree that the market will continue its upward trajectory, albeit at a more moderate pace. Newly released inventory in modern, sustainable developments will contribute to this trend, while older resale homes may experience slower growth or price stabilization.
Top Neighbourhoods in Estepona for Investment
Choosing the right neighborhood is crucial for maximizing the return on a property investment in Estepona. The following areas stand out in 2025 for their amenities, rental potential, and lifestyle appeal.
New Golden Mile:
This stretch between Marbella and Estepona is lined with luxury resorts, high-end villas, and newly built apartment complexes. The New Golden Mile attracts affluent buyers looking for premium coastal living, and it also performs well in the short-term rental market, especially during the tourist season.
Estepona Old Town:
The historic center of Estepona is known for its pedestrian-friendly streets, traditional whitewashed homes, and lively local culture. Buyers interested in authentic Spanish charm are drawn here, and the area has become increasingly popular among digital nomads and retirees.
Selwo:
A quieter area that offers proximity to nature and panoramic sea views, Selwo appeals to families and long-term residents. The availability of modern, affordable housing in gated communities makes this a practical and attractive option for investors seeking rental income or capital growth.
Cancelada:
This emerging neighborhood is gaining traction among younger buyers and budget-conscious investors. With access to major roads and planned developments underway, Cancelada offers significant growth potential over the next few years.
Across all of these areas, off-plan properties are generating interest due to their modern design, energy efficiency, and flexible payment structures.
International Buyer Trends and Market Demand
Estepona continues to attract a growing number of international buyers. British, German, Swedish, French, and Dutch investors represent the majority of foreign property purchases. This international interest has helped drive prices and contributed to a cosmopolitan community within the town.
Foreign buyers are particularly interested in modern apartments within secure complexes, villas with private pools and gardens, and townhouses that can be rented out either seasonally or year-round. Features like sea views, walking distance to amenities, and high-speed internet are consistently in demand.
Spain’s Golden Visa program remains a key attraction for investors looking to gain residency through real estate. In 2025, the Digital Nomad Visa is also playing an increasingly important role. This new legal framework allows remote workers and entrepreneurs to live in Spain for extended periods, boosting demand for rental properties and second homes.
To meet the needs of these international clients, many estate agencies in Estepona, including Marbella Estates, offer bilingual services, virtual tours, and remote assistance with legal and financial matters.
New Developments and Construction Projects
Estepona’s skyline is evolving with a wave of new construction projects, many of which are focused on sustainability and smart living. Developers are prioritizing energy-efficient buildings equipped with solar panels, electric car charging stations, and water-saving systems.
Major residential projects are underway in Cancelada and Selwo, where modern apartment complexes and gated villa communities are being built to meet increasing demand. In the town center, several urban renewal projects are improving walkability, green space, and overall livability.
These new developments are pushing prices higher in the surrounding areas while increasing buyer options and enhancing Estepona’s reputation as a forward-thinking municipality. Investors looking to get in early on these projects often benefit from lower pre-construction pricing and flexible financing options.
Rental Market Insights for 2025
The rental market in Estepona is thriving. The area sees strong demand for both holiday rentals and long-term leases, driven by tourism, remote workers, and new residents.
Short-term holiday rentals are particularly lucrative during the summer months. Properties on the New Golden Mile or near the beach can achieve average nightly rates of €120 to €180, with occupancy rates peaking at around 75 percent during high season.
Long-term residential rentals are also in high demand, particularly among families, retirees, and professionals relocating for lifestyle reasons. Monthly rents for apartments range from €1,100 to €1,600, while villas typically rent for €2,500 or more.
It is important for landlords to understand current regulations. All holiday rentals in Andalusia must be registered with the tourism department and meet specific standards for safety and comfort. Failure to comply can result in significant fines, so legal advice is recommended before entering the rental market.
Legal and Tax Considerations for Buyers in 2025
Purchasing property in Spain involves a number of legal and financial steps, particularly for non-residents. Buyers should be aware of several key taxes and requirements.
When buying a resale property, a 7 percent transfer tax applies. For new-build properties, VAT at 10 percent and stamp duty at 1.5 percent are required. In addition to these, buyers must budget for notary fees, legal fees, and property registration costs.
Capital gains tax for non-residents is 19 percent, while rental income is taxed at 24 percent for non-EU citisens and 19 percent for EU/EEA residents. Spain also has inheritance and wealth taxes, so it is advisable to speak with a tax advisor to understand your long-term obligations.
Legal steps in the property buying process include obtaining a NIE (Número de Identificación de Extranjero), opening a Spanish bank account, hiring a lawyer for due diligence, and signing the purchase agreement before a notary. Working with an experienced estate agency and legal team ensures that all aspects of the transaction are handled professionally and securely.
Why Choose Marbella Estates?
When it comes to buying property in Estepona, working with a knowledgeable and trusted estate agency can make all the difference. Marbella Estates offers a number of advantages that set them apart from the competition.
Local Expertise and Market Knowledge
With years of experience in the Costa del Sol real estate market, Marbella Estates understands the unique characteristics of each neighborhood. Their team can help you identify the best properties based on your goals whether that’s capital appreciation, rental income, or a second home.
Proven Track Record of Success
Hundreds of satisfied clients have successfully purchased and sold property through Marbella Estates. Their consistent performance and attention to detail make them a top choice for international buyers.
Personalized Marketing Strategies
Marbella Estates employs tailored marketing campaigns that include professional photography, drone footage, and online advertising. Their properties receive maximum exposure across top real estate platforms.
Dedicated Support Throughout the Process
From your first inquiry to final contract signing, Marbella Estates provides end-to-end assistance. Their bilingual team ensures clear communication, and they can also recommend trusted legal and financial advisors.
Innovative Technology and Tools
Clients benefit from virtual tours, interactive property search tools, and up-to-date market reports. These features allow buyers to make well-informed decisions even from abroad.
Frequently Asked Questions
Is Estepona a good place to invest in 2025?
Yes, Estepona is considered one of the top real estate markets in southern Spain. Property prices are still competitive compared to neighboring Marbella, yet the town offers similar lifestyle benefits. With high rental demand, steady price appreciation, and continued urban development, Estepona presents a strong opportunity for both short- and long-term investors.
Are property prices in Estepona going up or down?
Property prices in Estepona are increasing, with average year-on-year growth between 8 to 10 percent. The demand from international buyers, coupled with limited supply in premium areas, is expected to support further price growth throughout 2025. While certain older properties may experience more modest gains, new and well-located homes are seeing robust appreciation.
Can foreigners buy property in Estepona?
Yes, foreigners can freely buy property in Spain, including Estepona. There are no restrictions on foreign ownership, and non-residents can also apply for mortgages through Spanish banks. Additionally, programs like the Golden Visa and the Digital Nomad Visa make it easier for international buyers to gain residency based on real estate investment.
What taxes will I pay when buying property?
Buyers of resale properties in Estepona pay a 7 percent transfer tax. New properties are subject to 10 percent VAT and 1.5 percent stamp duty. Other costs include notary fees, legal fees, and land registry fees. For property owners, there are also annual municipal taxes (IBI), income tax on rental profits, and capital gains tax on any future sale.
Conclusion
Estepona’s real estate market continues to outperform expectations in 2025. With increasing international interest, a surge in sustainable new developments, and competitive prices relative to other Costa del Sol destinations, the town remains one of Spain’s most attractive locations for property investment.
Whether you’re looking for a vacation home, a permanent move, or a rental property, Estepona offers a compelling mix of value, lifestyle, and future growth. The time to act is now.
If you are ready to explore the opportunities available in Estepona, start by speaking with a trusted expert. Visit Marbella Estates to browse current listings and take the first step toward your investment in the Costa del Sol.