Emerging Areas to Invest in on the Costa del Sol in 2025 and Beyond

Investing in the Costa del Sol remains a safe bet thanks to its climate, international connectivity, and tourist appeal. However, while established locations such as Marbella or Puerto Banús already have consolidated prices, there are emerging areas offering greater profitability and long-term growth potential.

At Paramount Homes, we continuously analyze the market and have identified the zones gaining ground among international investors.

1. West Estepona: the new “quiet gem”

• Why invest: expanding urban development, new-build projects with still-competitive prices.
• Appeals to: families and retirees seeking peace near the sea.
• Profitability keys: strong demand for holiday rentals and infrastructure projects underway.

2. Mijas & Mijas Costa: balance between price and location

• Why invest: close to both Málaga and Marbella, yet more affordable than Fuengirola or Benalmádena.
• Appeals to: digital nomads and first-time buyers.
• Profitability keys: growing residential complexes with community services, ideal for long-term rentals.

3. Vélez-Málaga & La Axarquía: the sustainable alternative

• Why invest: rising rural tourism and increasing demand for properties with land.
• Appeals to: Europeans seeking a slower lifestyle, away from the crowds.
• Profitability keys: prices remain low with strong potential for appreciation as connectivity improves.

4. Revitalized Torremolinos: urban rediscovery

• Why invest: urban renewal plans and a repositioned tourist image.
• Appeals to: buyers looking for an active lifestyle, leisure options, and proximity to the airport.
• Profitability keys: high turnover of holiday rentals and strong transport infrastructure.

5. San Pedro de Alcántara: Marbella’s “new neighbor”

• Why invest: more affordable than Marbella while still enjoying access to its services and prestige.
• Appeals to: investors seeking luxury at a lower entry price.
• Profitability keys: strong demand for both holiday lets and long-term rentals.

Key tips before investing

1. Assess your profile: investing for holiday rentals is not the same as investing for long-term yield.
2. Verify all documentation: avoid unpleasant surprises with hidden debts or legal restrictions.
3. Project real costs: taxes, maintenance, and community fees can vary widely depending on the area.