Costa del Sol Property Market: Where to Buy?

Costa del Sol is Spain’s southern and most expensive coastline, belonging to the Andalusia region. The area attracts with its beaches, infrastructure, high-level service and quality of life. Water temperature is typically 22-24 C, so swimming pools are popular. The traditional Andalusian character of the region is gradually transforming into a modern, high-tech zone.

1. Costa del Sol Property Price Overview

In June 2020, the average price per square metre was EUR 1,646 (a 6% increase compared to June 2019). Costa del Sol ranks sixth among Spain’s most expensive regions for property. The average purchase price reaches EUR 744,711. The highest prices are in Marbella: EUR 3,059/m2, followed by Malaga at EUR 2,123/m2. Notably, every third property purchase is made by a foreigner.

2. Sotogrande

Sotogrande hosts an annual International Polo Tournament - the largest in Spain. Local training facilities are considered among the best in the world. Most properties cater to polo enthusiasts, with villas predominating. A three-bedroom house of 212 m2 with a 150 m2 terrace costs approximately EUR 495,000 at project stage.

The port offers luxurious sailing conditions and is considered the second most beautiful on the Costa del Sol after Puerto Banus. Some buyers acquire property with private moorings. Strong Atlantic winds make Sotogrande ideal for sailing schools. Mediterranean restaurants offer dinner with views of Gibraltar and Africa.

3. Casares and Casares del Sol

Casares del Sol is a beach village hidden in the mountains, a few kilometres from the coast. Only a few thousand people live here year-round. The landscape features picturesque valleys, hills with grazing goats and several dairy and cheese farms.

Located ten minutes from Estepona, Casares offers significantly lower prices. Traditional Spanish white houses from the 1980s in the village cost around EUR 80,000. On the coast there are several pebble beaches with minimal infrastructure for permanent residence.

4. Bahia Dorada and Alcazaba Lagoon

Bahia Dorada has approximately ten gated residential complexes along the sea. Property closer to the water and the A-7 motorway costs more. New two-bedroom apartments on the front line start from EUR 170,000.

Previously a seasonal resort, plans by authorities to build infrastructure including a major hospital should drive prices up. The area is recommended for investment with resale potential.

Nearby are Estepona Golf complex and Alcazaba Lagoon with a 1.4-hectare artificial lake and 40,000 m2 gardens. The urbanisation includes 72 apartments with smart home systems, underfloor heating and sea views. The lake offers various water sports exclusively for residents. A restaurant and Dutch hot tubs complement winter leisure. Residents enjoy free use of tennis courts and pools at the nearby Fuerte Estepona hotel.

Two-bedroom apartments start from EUR 239,000; penthouses with terraces from EUR 650,000.

5. Estepona

Estepona is the first relatively large town heading east. It is described as “quiet, well-maintained and cosy”. Since the 1980s, Spanish tourists from Seville and Madrid have favoured it. Today, only around 30% of residents are Spanish; 70% are foreigners, predominantly Germans, Belgians, British, French, Argentinians and Russians.

The town suits both seasonal holidays and permanent residence, offering a quieter environment than Marbella or Malaga with adequate infrastructure. Mercadona and Carrefour supermarkets, restaurants, service centres and prestigious international schools (in English and Spanish) are all available. The town market sells fresh fish; until the mid-20th century, Estepona was a simple fishing village. La Escollera restaurant, owned by a fisherman, serves the day’s catch.

Cultural attractions include museums, fortress ruins, the Iglesia de Santa Maria de los Remedios church (built in the 15th century, rebuilt in the 18th) and the famous Orchidarium with 1,300 orchid species.

The sandy Playa de la Rada beach is one of the best on the coast, approximately 150 metres wide. A ten-kilometre promenade runs along the town with cycle paths, flower beds, sports and play areas, and giant chess sets.

Property prices remain attractive. Resale apartments within one hundred metres of the sea start from EUR 90,000. New-builds on the other side of the A-7 motorway on higher ground cost EUR 250,000 for sea views (15-20 minutes to the beach). New front-line apartments start from EUR 1,400,000. Low-season rental averages EUR 60 per night; high season EUR 100-150. The town has few hotels, creating high demand for accommodation in summer.

6. San Pedro de Alcantara

Seven kilometres from Marbella, San Pedro de Alcantara offers balanced living conditions. A two-bedroom apartment from the 1990s, 15 minutes’ walk from the sea, costs EUR 150,000. New front-line apartments start from EUR 350,000.

Expats with school-age children often choose this location for comfortable housing, quality leisure and education. Long-term rentals typically yield EUR 600-800 per month.

Numerous international schools provide British or Spanish curriculum education from EUR 1,000 per month. These include: Baby Tinkerbell School (nursery), Marbella Montessori School, Calpe School, Saint George’s School, Swans International School and Laude International College. Language courses are offered at Instituto Internacional de Idiomas.

7. Marbella and Puerto Banus

Entering Marbella, the first sight is the Puerto Banus marina with multi-million-euro yachts. Around the port are world-famous boutiques, fine restaurants and nightclubs. Marbella with Puerto Banus forms a conurbation embodying “wealth, glamour and hype” - the Spanish Hollywood.

The “Golden Mile” (Milla de Oro) stretches through the conurbation, where film stars, politicians, athletes and billionaires own holiday villas. Notably, the Golden Mile is not on the seafront but in quiet zones beyond the AP-7 motorway, at the foot of Sierra Blanca mountain. The mountains shelter from mainland winds, creating a unique microclimate: approximately +20 C daytime and +15 C nighttime in both winter and summer. The 1970s building boom created luxury villas here; owners include the Saudi royal family, Madonna and Antonio Banderas. Some “palaces” cost around EUR 20,000,000.

The annual Starlite festival attracts European elite with a month-long programme of concerts and parties. Past performers include Sting, Julio and Enrique Iglesias, Ricky Martin and Lenny Kravitz.

For ordinary residents, small apartments on the first-second line cost around EUR 200,000 in 1970s-80s complexes with shared pools and gardens. New-builds closer to San Pedro de Alcantara with sea views start from EUR 450,000.

Marbella has 24 beaches with excellent swimming and sunbathing conditions. Fontanilla is the central beach; Playa del Cable attracts young people with DJs and parties; Playa de Artola and Cabopino border pine groves.

8. Fuengirola

Fuengirola is easily accessible by train, departing from Malaga Airport every twenty minutes. Along with Estepona, it is one of the best value-for-money locations.

The main concern is a large and noisy Muslim community (predominantly Moroccan immigrants). The local mosque serves as the main gathering point. Every Friday, many worshippers in white garments attend prayers. In state schools, over half the pupils are Muslim.

For EUR 150,000, you can purchase a two-bedroom apartment on the second-third line from the sea. Beaches are clean and wide with multi-kilometre promenades. Family entertainment includes a zoo, underground labyrinths, water parks and amusement parks.

9. Mijas

Climbing into the mountains north of Fuengirola, you arrive in Mijas - a picturesque village embodying typical Spanish charm. Property here is generally over 70 years old and often needs renovation, but the housing stock demonstrates durability comparable to new-builds. A house with a living room and two bedrooms costs around EUR 120,000.

Traditional white lime wash (not paint) keeps interiors cool in summer and reduces humidity in winter. Instead of taxis, donkeys serve as transport; a 12-storey car park has been built for vehicles. Romance and panoramic mountain views attract foreigners, mainly British. Flamenco schools and wine museums operate in the village.

Mijas is eight kilometres from the coast and accessible from Fuengirola by bus in 15 minutes.

10. Benalmadena

Tourists visit Benalmadena for the Tivoli World amusement park with rides, a house of horrors, rock climbing with Costa del Sol views and eagle shows.

Thanks to infrastructure and airport proximity, property costs more than in Fuengirola. Puerto Marina at the port features “Venice” - houses on stilts over water. One-bedroom apartments with sea views in these buildings cost EUR 150,000. City apartments range from EUR 89,000 (studios) to EUR 180,000 (two-bedroom).

Summer paella competitions make Benalmadena the best place for this dish on the Costa del Sol: participants cook and treat visitors. The world’s smallest chapel - Santa Isabel de Hungria in Colomares Castle - is also here (1.96 m2).

11. Torremolinos

Annual LGBT Pride parades attract people of various sexual orientations from across Europe - both for the parade and permanent residence. Vibrant nightlife, an LGBT-friendly atmosphere and numerous hotels make Torremolinos one of the world’s leading tourist destinations.

Torremolinos gained its reputation as a “gay resort” after the “Tony” bar opened here in 1962 - the first gay bar in Spain. In the 1960s, Franco’s authorities tolerated Torremolinos’s liberal atmosphere for the foreign currency revenue.

Property prices are competitive. One-bedroom front-line apartments cost EUR 120,000.

12. Malaga

The sixth largest city in Spain and second in Andalusia (after Seville), Malaga has over half a million inhabitants. The city offers excellent shopping, convenient transport and cultural attractions. The airport is eight kilometres away; the port receives fishing vessels and the world’s largest cruise liners (Harmony of the Seas, MSC Splendida). Traffic congestion and several factories within the city limits affect beach cleanliness.

For those preferring dynamic urban life, Malaga combines career and educational opportunities with seaside leisure. Several major universities attract Spanish and international students. The University of Malaga (UMA) educates over 40,000 students, creating excellent rental income potential. Year-round student rentals yield an average of EUR 700 per month. Apartments in the “student quarter” cost EUR 100,000 with consistent tenant demand.

Cultural attractions include the Picasso Museum, Carmen Thyssen Museum, Contemporary Art Centre and the local football club.

13. Velez-Malaga

35 kilometres east of Malaga (half an hour by car), Velez-Malaga is a town for those working or studying in Malaga but preferring lower property prices.

For the same money, buyers get twice the space and a better location. If in Malaga EUR 100,000 buys a one-bedroom 1980s apartment half an hour from the sea near the university, in Velez-Malaga the same EUR 100,000 buys a one-bedroom apartment aged 5-10 years right by the sea. The beach here is pebbly.

14. Nerja

The eastern border of the Costa del Sol passes beyond Nerja - where our virtual tour ends.

Nerja’s main attraction is the Cueva de Nerja cave, called the “natural cathedral of the Costa del Sol”. Since 1960, the four-kilometre cave has been continuously visited by tourists. It features a natural amphitheatre where concerts are held. Every July, the International Festival of Music and Dance takes place here. A 32-metre column - the largest stalactite in the Guinness Book of Records - stretches from ceiling to floor. On the road to the cave, an impressive aqueduct called “Eagle Bridge” can be seen.

The Balcon de Europa - a scenic cape with a viewing platform - attracts photographers. The promenade offers numerous colourful restaurants. Tourism fills the town year-round.

Housing is scarce due to mountainous terrain unsuitable for construction, limiting sales but creating unlimited potential for rental accommodation. Cave excursions run year-round, ensuring a constant flow of tenants. One-bedroom 1960s apartments start from EUR 140,000 (rare offerings).

Apartments yield EUR 70-120 rental income per night. The popular “bed and breakfast” format (owner in one room, rental in another) yields EUR 30-60 per night. The town has few hotels, forcing tourists to rent apartments or rooms from locals.

15. Summary Table: Pros, Cons and Property Prices by Location