Thinking of buying property on Spain’s stunning Costa del Sol? You’re not alone. In fact, property investments in the region surged by over 18% in 2024, with international buyers leading the charge.
But one big question remains: Estepona or Marbella?
Each town offers a unique flavour of Andalusian charm, luxury, and lifestyle, but the returns on investment, property prices, and long-term potential are far from identical. As someone who has seen these markets evolve firsthand, I’m here to help you make the smart choice in 2025.
Whether you are after seaside tranquillity or a cosmopolitan atmosphere, this guide breaks down everything you need to know about property investment in Estepona versus Marbella.
Market Overview: Estepona vs Marbella in 2025
The Costa del Sol property market remains buoyant in 2025, but the dynamics differ significantly between Marbella and Estepona. Marbella continues to attract global prestige, remaining a favourite among high-net-worth individuals, retirees, and luxury lifestyle investors. Estepona, on the other hand, has emerged as a growth hotspot, drawing attention from value-conscious investors, families, and those looking for emerging opportunities.
Average property prices reflect these differences. As of early 2025, Marbella stands at approximately €4,800 per square metre, while Estepona averages around €3,200. These figures have steadily increased over the past five years, with Estepona showing the fastest growth due to urban redevelopment and infrastructure investment.
Emerging hotspots in Marbella include Nueva Andalucía, the Golden Mile, and Elviria. In Estepona, areas such as the New Golden Mile, Selwo, and Cancelada are gaining popularity due to new developments and improved amenities. To explore more on high-potential areas, read Top Investment Hotspots in Costa del Sol for 2024.
Buyer demographics vary as well. Marbella attracts luxury-seeking international buyers, while Estepona appeals to mid-range investors and retirees looking for high-quality properties at more accessible price points.
Property Prices and Types Available
Property options in both towns cater to a wide range of investment strategies, but the price points and types of homes differ. In Marbella, luxury villas often start at €2 million, with high-end apartments ranging from €500,000 to €900,000, especially in sought-after areas like the Golden Mile. New developments typically offer premium amenities such as concierge services, wellness centres, and private security. For a more detailed look, consider reading Discover the Ultimate Property Investment in Marbella.
Estepona offers a broader spectrum of investment opportunities, with beachfront apartments priced between €300,000 and €600,000. Villas range from €700,000 to €1.5 million, and there is a wealth of off-plan developments that blend modern design with competitive pricing. For guidance on buying new builds, see Buying Off-Plan Property in Costa del Sol: A Step-by-Step Guide.
Investors considering off-plan properties in either location should weigh the pros and cons. Marbella's off-plan options provide immediate brand prestige and luxurious finishes but come at a higher cost. Estepona's new developments offer strong appreciation potential and often better value per square metre. Learn more in Investing in Paradise: Discover Estepona's Luxury Properties.
Rental Yields and Short-Term Let Potential
Marbella and Estepona both benefit from a strong rental market, but investor expectations should be shaped by different profiles. Marbella commands higher rental yields, typically between 5% and 7%, owing to its popularity among affluent holidaymakers and business travellers. Properties near Puerto Banús and the Golden Mile are especially lucrative for short-term rentals.
Estepona offers yields in the 4% to 6% range. While slightly lower, the town's lower property prices allow for strong returns relative to the initial investment. Tourism growth, improved infrastructure, and rising international interest contribute to increasingly favourable occupancy rates. Investors may want to review this guide to holiday rental investment in Costa del Sol for deeper insights.
In both towns, short-term letting requires a tourist licence. Marbella's market is more mature and competitive, while Estepona is still expanding, providing room for new entrants. Regulations must be carefully followed to avoid fines, and professional property management is advisable.
Lifestyle, Amenities and Liveability
Marbella is known for its upscale lifestyle, with luxury boutiques, gourmet restaurants, world-class golf resorts, and a vibrant nightlife scene. It is also home to excellent private healthcare facilities and international schools, making it appealing for families and expatriates seeking a cosmopolitan lifestyle. If you are exploring this lifestyle, you might find How to Choose the Right Property in Marbella particularly helpful.
Estepona offers a more relaxed and authentic Andalusian experience. Its charming old town, renovated promenade, and family-friendly beaches make it ideal for those seeking tranquillity without compromising on amenities. Estepona is increasingly popular with retirees, young families, and digital nomads. For a broader perspective on relocating, see Living and Working in the Costa del Sol.
The cost of living is notably lower in Estepona, making it more attractive for long-term residents. Public transport, healthcare, and schooling are all available, though Marbella has a slight edge in terms of variety and prestige.
Future Growth Potential and Infrastructure Developments
Estepona's rapid transformation is being driven by strategic investments in infrastructure and urban development. New luxury hotels, an upgraded marina, and sustainability projects are enhancing the town's appeal. Roads, public transport, and community facilities are also being modernised, supporting long-term growth.
Marbella continues to invest in smart city technologies, road networks, and eco-friendly initiatives. While already highly developed, ongoing projects help maintain its global appeal and support property value stability.
For investors, Estepona presents a window of opportunity to capitalise on rising demand and urban regeneration. Marbella, by contrast, offers stability, brand recognition, and a proven record of long-term value.
Taxes, Fees and Legal Considerations
Buying property in Spain involves several costs beyond the purchase price. These include a property transfer tax (typically 7% to 10%), legal and notary fees (around 1.5%), and registry costs. Annual property taxes such as IBI, community fees for shared amenities, and home insurance must also be factored in.
The process for foreigners buying property is straightforward but does require preparation. An NIE number is essential for all legal and financial transactions. Most buyers appoint a solicitor to handle due diligence, review contracts, and facilitate communication with the seller and notary. A complete breakdown of the buying process can be found in Costa del Sol Property Investment Guide.
Spain's Golden Visa programme remains in place in 2025. This residency-by-investment scheme allows non-EU nationals to obtain Spanish residency by purchasing property worth €500,000 or more. It is particularly attractive to investors looking to live, work, or travel freely within the Schengen Zone.
Investor Profiles: Who Should Choose Estepona vs Marbella?
Marbella is the ideal location for investors seeking luxury, prestige, and established rental income. It is best suited for high-net-worth individuals, seasoned property investors, and those looking for a home that doubles as a lifestyle asset.
Estepona is a smart choice for value-driven investors, early retirees, and buyers looking for strong capital appreciation over the next five to ten years. It appeals to those with a medium-term investment horizon and a desire for a more relaxed living environment.
A real-world example includes a British investor who purchased an off-plan apartment in Estepona for €320,000 in 2022. By 2025, the property is valued at over €400,000 and generates a 5.5% annual rental yield, demonstrating the area's robust growth and earning potential.
Why Choose Relo Real Estate?
Relo Real Estate stands out as a trusted partner for international buyers navigating the Costa del Sol property market. Their local expertise, established track record, and client-focused approach make them an ideal choice for investors at any stage.
The Relo team has in-depth knowledge of both the Marbella and Estepona markets. Their on-the-ground experience allows them to provide tailored advice, identify the best investment opportunities, and negotiate favourable terms. Learn more about their recent expansion in Relo Real Estate Expands to Costa del Sol.
