Adam Neale (Columnist)
ONCE a quiet fishing village, Estepona has transformed into a thriving cultural and travel hub. With a population nearing 79,000 in 2024, the city has retained its Andalucian charm while embracing modernisation through strategic infrastructure upgrades, cultural projects, and beautification efforts.
Estepona’s leadership has spearheaded significant urban renewal projects, including the pedestrianization of over 130 streets in the Old Town and waterfront areas. These efforts have enhanced the city’s appeal with potted flowers, shaded walkways, and improved public spaces. Two major revitalization projects are underway: the remodeling of Calle Terraza and the transformation of San Lorenzo Boulevard into a 22,000-square-meter pedestrian zone connected to the Old Town.
Cultural initiatives have also flourished. Estepona boasts a Poetry Walk and Murals Walk featuring over 60 large-scale artworks. The Mirador del Carmen Arts and Cultural Centre is already enriching the city’s cultural landscape, while the forthcoming Starlite Music World—a €286 million project—will host up to 15,000 attendees at year-round events.
Estepona’s efforts were recognised in 2023 when it was named Europe’s second-best city by the Academy of Urbanism.
Tourism Boom: Hotels, Dining, and Festivals
The city’s hospitality sector is thriving, with new luxury hotels such as Mett Hotel & Beach Resort, Hotel Silken Maravilla Palace, and The Old Town Boutique Hotel opening recently or under development. Estepona will also welcome two new Croma HM Hoteles properties and a $40 million luxury hotel project by Unicorn Royal Emirates. Globalia Group has proposed additional developments worth €780 million, including a 1,400-room hotel.
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Estepona’s culinary scene is equally vibrant. The Michelin-recognized El Palangre Seafood Restaurant set a high standard for gourmet dining in the city. In 2024, the Mercado de Abastos was transformed into a gastronomic hub under Michelin-starred chef Robin Hall. The upcoming Eva Estepona beach club promises to further elevate the dining experience in 2025.
The city is also positioning itself as an entertainment destination with events like the Boombastic Music Festival in July and the World Ham Competition in August.
Natural Beauty Meets Modern Appeal
Estepona’s natural assets include 17 beaches spanning 21 kilometers, with Playa de la Rada—a pristine Blue Flag beach – standing out as a favorite. The city enjoys an enviable Mediterranean climate with 325 sunny days annually and mild winters.
These qualities have made Estepona increasingly attractive to tourists and investors alike. Its real estate market is booming, with property prices rising by 16.54% in 2024 to an average of €4,017 per square metre – more affordable than nearby Marbella but growing at a faster rate.
Real Estate Market Trends
Estepona is emerging from Marbella’s shadow as a luxury destination with its own unique identity. While Marbella remains synonymous with high-net-worth individuals purchasing lavish estates, Estepona appeals to those seeking quality investments at more accessible price points.
Rental prices have surged nearly 80% since 2021, reaching €16.99 per square meter by late 2024. This trend reflects strong demand for both long-term rentals and lucrative vacation properties. However, prospective investors should be mindful of potential regulations on short-term rentals.
Population growth further underscores Estepona’s dynamism. The city grew by approximately 4.6% annually in recent years, driven largely by foreign nationals who now make up 27% of its residents.
Future Prospects
With declining interest rates and reforms in Andalusia’s planning laws expected to spur construction activity, Estepona is poised for continued growth. New luxury developments like Tyrian beachfront villas and Rafael Nadal-backed Palya Invest projects highlight its rising status as a premier destination for second homes and investment properties.
As Estepona continues to evolve with a blend of tradition and modernity, it offers compelling opportunities for residents, tourists, and investors alike – solidifying its place as one of the Costa del Sol’s most promising cities.
To view the full market report visit www.terrameridiana.com
