The rise of the golden triangle – Could Estepona become the new Marbella?

The high-end real estate market in Spain’s Costa del Sol continues its upward trajectory, with Marbella, Estepona, and Benahavís, popularly known as the Golden Triangle, recording an average annual price increase of 11.9 per cent in May 2025, according to data from Idealista.

Estepona has the highest increase of 15,1%, mainly due to new constructions and an increased supply of buildable land. Benahavís saw a 10.8 per cent rise, while Marbella recorded a more moderate 9.8 per cent increase compared to the previous year. Marbella’s reputation as the most luxurious destination is fading?

Estepona’s most desirable areas included Playa Bahía Dorada (+28.3 per cent), Selwo (+23.0 per cent), and Estepona town itself (+21.8 per cent). In Benahavís, Los Flamingos (+21.0 per cent), La Zagaleta-El Madroñal (+18.6 per cent), and El Paraíso (+17.7 per cent) saw breathtaking growth.

The Association of Entrepreneurs for High-Quality Housing, DOM3, welcomed the strength of the market and its international appeal. However, they were surprised by the increase. DOM3 President Charly Simmon warned that to avoid a slowdown in transactions, the second hand market must stay in line with demand and expectations. “The situation is extraordinary, but we must maintain balance.” Simon warned that “continuous price increases in the used segment could have an impact on sales volume”.

Foreign investors dominate the rise of golden triangle

In 2024, the Golden Triangle sold 8,708 homes, a 5.64 per cent increase from 2023, with Marbella selling 4,745, Estepona 3,162, and Benahavís 801. In the first quarter of 2025, Spain saw 21,525 international buyers. Of these, 34.75 percent were from Malaga. In Marbella’s luxury segment, over 90 per cent of  buyers are international, putting the city on the same level as Dubai, Miami, and London for internationalism.

The international community of the area is growing. By 2024 Marbella’s municipality will have 167,000 residents, including 55,000 immigrants from 152 countries.

DOM3’s event season concluded with a focus of the client experience within the luxury real estate industry. Belén González, CEO of beex, a real estate consultant, stressed that when product quality, in terms of design, materials, and location, is near perfect, the client experience becomes the differentiator. She introduced the concept of “liquid experience”, which is hassle-free. She explained that Marbella has become a benchmark for high-net worth buyers who compare it to other luxury destinations such as Miami or Monaco.

DOM3 emphasized the need for better infrastructure. This includes affordable housing for workers in the local area and sustainable urban planning. “If we want to be a top destination, then we have to have the best possible infrastructure.” Simon concluded that it’s now time to move forward with a longer-term perspective.

Estepona is the next Marbella in terms of luxury residences.