Costa del Sol Attracts Almost €160 Million in Residential Investment with New Projects in Marbella and Estepona

The Costa del Sol continues to strengthen its position as one of southern Europe’s leading residential investment markets. Strong national and international demand, limited new-build supply in certain areas and growing interest in high-end housing are driving a new wave of developments in municipalities such as Marbella and Estepona.

Two recently announced projects will mobilise almost €160 million and add more than 300 new homes to the residential market in Málaga province.

Praxfer Homes will invest more than €70 million in The Grove, a development of 139 prime homes in San Pedro Alcántara. Meanwhile, Taylor Wimpey Spain will allocate €89.4 million to complete the Mirador de Estepona Hills complex with 168 new apartments.

The Grove: 139 Prime Homes in San Pedro Alcántara

Construction of The Grove has already begun after the project obtained its building licence.

The development will be located in Marbella West, one of the areas undergoing the greatest urban transformation in San Pedro Alcántara and an increasingly important location for premium residential projects.

The complex will include 139 homes aimed at the prime segment and will be located just a few minutes from Puerto Banús and the beach.

Sales have started strongly. Around 30% of the homes have already been sold before the project has even been opened to the international agency channel.

This performance confirms strong demand for high-quality new-build homes in Marbella, particularly among national and international buyers seeking a main residence, second home or investment property.

A Residential Model Inspired by Luxury Resorts

The Grove is based on the Urban Resort Living concept, a model that brings services usually associated with luxury resorts into permanent residential living.

The development will include a wellness hub with sauna, steam bath, indoor pool and recovery areas, as well as four saltwater pools, a gym, coworking spaces and social rooms.

It will also feature a pet spa, an adults-only rooftop lounge, 24-hour smart security and home automation solutions.

Fernando Moreno, CEO of Praxfer Homes, said the project reflects a new way of understanding housing and described it as one of the most complete new-build developments on the Costa del Sol.

Marbella mayor Ángeles Muñoz also highlighted the importance of public-private collaboration in attracting projects that strengthen the city’s positioning.

International and Spanish Buyers

Demand for the project comes from both the domestic market and international buyers.

The developer has identified growing interest from countries such as Poland, the Netherlands, Sweden, Germany, Switzerland and the United States, as well as from Spanish buyers looking to move to Marbella or purchase a second home.

The location, services and shortage of new-build supply in consolidated areas help explain the appeal of the development.

Marbella remains one of the strongest markets on the Costa del Sol, especially in the high-end residential segment.

Taylor Wimpey to Invest Almost €90 Million in Estepona

The second major project will be developed in Estepona.

Taylor Wimpey Spain has acquired the last available residential plot within Mirador de Estepona Hills in order to complete the urban development of the complex.

The planned investment amounts to €89.4 million and will allow the construction of 168 apartments distributed across two developments of 84 homes each.

Construction is expected to begin in the first quarter of 2027 and will be carried out in four phases.

A New Development Based on the Mediterranean Village Model

The new homes at Mirador de Estepona Hills will be designed under the Mediterranean Village concept.

The project will include large terraces, open layouts and new communal services that will complement the existing facilities within the resort.

Ignacio Oslé, regional director of Taylor Wimpey Spain on the Costa del Sol, said the operation strengthens the company’s position in Estepona and adds immediate value to the properties already located within the complex.

The developer’s goal is to complete the urban plan in a harmonious, modern way that is aligned with the existing community and the surrounding environment.

Sustainability and Landscape Integration

The new project will incorporate sustainability criteria in both design and construction.

Planned measures include the use of low-carbon materials, water-saving systems, advanced energy-efficiency solutions and architecture integrated into the landscape of Sierra Bermeja.

These elements reflect a growing trend in the new-build residential market, where buyers increasingly value both housing quality and the environmental performance of buildings.

Sustainability has therefore become a competitive factor in the Costa del Sol’s premium residential segment.

Estepona Strengthens Its Real Estate Growth

Taylor Wimpey’s investment will complete the master plan for one of Estepona’s most representative residential complexes.

The municipality has become one of Spain’s fastest-growing real estate markets in recent years.

Its progress has been supported by urban improvements, legal certainty, high-quality residential supply and steady international demand.

A combination of more competitive prices than some parts of Marbella, good connectivity and a growing tourism profile has placed Estepona firmly on the radar of developers and investors.

Costa del Sol Remains a Priority Market for Investors

The projects by Praxfer Homes and Taylor Wimpey Spain reflect the strength of the residential market on the Costa del Sol.

The combined investment of almost €160 million confirms that Málaga’s coastline remains a priority destination for new housing development, especially in locations with established demand and strong international appeal.

Marbella and Estepona once again stand out as two of the main drivers of Andalusia’s real estate market, with projects combining design, services, sustainability and a clear focus on the high-end residential segment.

Project in Marbella: The Grove, by Praxfer Homes
Location: San Pedro Alcántara, Marbella West
Investment: More than €70 million
Homes: 139 prime units
Project in Estepona: Mirador de Estepona Hills, by Taylor Wimpey Spain
Investment: €89.4 million
Homes: 168 apartments
Expected start of works in Estepona: First quarter of 2027
Combined investment: Almost €160 million

Information source: El Economista