If you’re wondering where to invest in Costa del Sol real estate in 2025, now is the time to take a closer look at the opportunities unfolding across this highly sought-after region.

From the luxury beachfront developments of Estepona and the New Golden Mile to the rising markets of Manilva, Casares, Sabinillas to Cádiz province is experiencing strong demand and price appreciation driven by international buyers.

With limited supply in prime coastal zones and new developments offering competitive entry points, the Costa del Sol is attracting attention from serious global investors seeking excellent value, long-term growth potential, and strong rental returns.

Whether you're looking for capital appreciation, consistent rental income, or a lifestyle property with investment upside, this guide breaks down the best areas to consider right now.

Estepona and the New Golden Mile: A thriving luxury real estate market

Estepona’s New Golden Mile has firmly established itself as one of the most sought-after areas for high-end real estate on the Costa del Sol.

The beachfront area of Guadalmansa, in particular, has recently been named the most expensive neighborhood in Andalusia, surpassing even Marbella’s famous Golden Mile.
Key highlights:

  • Property prices in Guadalmansa have increased by over 50% in the last five years.
  • Average prices now range from €7,000 to €7,500 per square meter.
  • Limited supply in gated beachfront communities such as Torre Bermeja, Cabo Bermejo, and Las Dunas Park continues to drive demand.

These exclusive urbanizations offer direct beach access, 24-hour security, tropical gardens, and resort-level amenities that appeal to both lifestyle buyers and investors.

Strong rental yields and passive income potential

Beyond capital appreciation, Costa del Sol’s prime locations offer high rental returns, particularly in the short and mid-term rental markets.

  • In beachfront areas like Guadalmansa, gross rental yields can reach up to 6.5%.
  • High demand from digital nomads, long-stay tourists, and second-home owners ensures consistent occupancy.
  • Fully renovated or turnkey apartments and penthouses are particularly attractive for rental investors.

Whether buying for income, retirement, or wealth diversification, Costa del Sol delivers real returns.

New developments: Invest in Costa del Sol Real Estate in 2025

Newly built and off-plan developments are offering modern design, energy-efficient features, and attractive payment plans, often at lower entry prices than established areas.

Here are some of the most promising areas for new development investment:

Royal Park Residence, Estepona East's New Golden Mile

  • Royal Park Residence offers luxurious ground-floor apartments and penthouses with 2 to 4 bedrooms.
  • The development features modern design and high-end amenities, catering to diverse lifestyle needs.
  • Prices range from €695,794 to €1,529,870.

Benahavís and La Quinta Golf Valley

One of the most secure and upmarket areas in southern Spain, Benahavís is known for luxury villas and high-end developments with panoramic views.

  • Premium apartmens starting from €585,000
  • Eco-friendly projects with wellness and golf facilities
  • High interest from Scandinavian and Dutch buyers

Casares Costa and Finca Cortesin

Anchored by the world-renowned Finca Cortesin resort, Casares is a rising star for investment just west of Estepona.

  • Casares Playa Developments from €385,000
  • Rental potential driven by golf tourism and branded residences
  • A strong option for mid- to long-term capital growth

Manilva and Sabinillas

Just 20 minutes from Estepona and close to Gibraltar, Manilva and Sabinillas are seeing significant growth and infrastructure upgrades.

  • Developments with Sea Views from €398,000
  • Lower cost per square meter than other coastal towns
  • Perfect for early investors looking for long-term value increases
  • Strong short-term rental potential with access to beaches and marina

Marbella East and Elviria

Marbella East continues to be a strong market for buyers seeking proximity to Marbella with more privacy and space.

  • Contemporary projects tied to luxury hotel brands
  • Properties starting from €395,000
  • High rental demand and consistent capital appreciation

Real estate vs. stock market: A safer alternative for 2025

With global markets remaining volatile and inflation concerns continuing across Europe, many investors are reallocating from equities to real assets like real estate.

Luxury property on the Costa del Sol offers a hedge against inflation, consistent income, and the security of owning a tangible asset.

While stock prices are subject to speculation and market swings, property investments in high-demand areas like Estepona and Marbella provide both lifestyle benefits and long-term financial rewards.

Why invest now on the Costa del Sol

  • Tangible, secure investment with steady returns
  • High demand from international buyers and tenants
  • No new beachfront land being released, creating long-term scarcity
  • Strong infrastructure, healthcare, and international connectivity
  • Excellent legal framework for foreign ownership

Work with Livingstone Estates

As Estepona’s leading luxury real estate agency, Livingstone Estates specializes in exclusive properties, new developments, and high-yield investment opportunities across the Costa del Sol.
We offer:

Explore exclusive listings and developments

Start your investment journey today

Contact us to schedule a consultation or request a customized list of opportunities tailored to your investment goals.
Email: info@livingstone-estates.com
Phone: +34 952 806 417
Visit: Urb. Guadalmansa, Edif. Salinas Local 7, Estepona

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