A Recap of Estepona and the Costa del Sol’s Real Estate Market in 2023

Old window blind and flowers in Estepona, Costa del Sol, Malaga, Andalusia, Spain

As we bid farewell to 2023, it’s time to reflect on the twists and turns that shaped the real estate landscape in Estepona and the enchanting Costa del Sol. The year brought about notable changes, revealing a market influenced by a rise in property prices, a dip in sales, and changes in buyer´s behaviour.

Price Surge and Declining Sales

One of the standout aspects of the year was the surge in property prices on Costa del Sol but especially in Estepona. We all know that Estepona is “in vogue“ and although all of the changes and improvements to our town are excellent, they have also resulted in an increase in demand for properties from families and investors alike. This in turn has pushed properties prices up to a level that we didn’t even see before the famous 2008 recession and property boom on the coast. Real estate agents, eager to capitalise on the rising interest, tended to overvalue properties, contributing to a sense of hesitation among potential buyers who in turn became aware of this surge in prices and they began to exercise caution, taking their time to navigate the market and being careful not to be too impulsive.

Steady Prices and a Slow Decrease

Despite the initial surge in property prices, Estepona’s real estate market eventually found a semblance of balance. Prices stabilised, and a gradual decrease set in, offering a sigh of relief for those who had feared an unsustainable market. This slow correction aligned the property market with more realistic expectations and fostering a healthier environment for both buyers and sellers. From our perspective, property valuations have always been one of our strengths based on over 25 years experience and we always strive to set a fair price for both buyer and seller, this in turn resulted in a steady stream of sales and we are fortunate to say that “what we list we sell“! With happy sellers and buyers alike, all the while avoiding an overly inflated and stagnant market that doesn´t do anyone any favours.

Economic Impact from Abroad

The state of the economy in other European countries cast its shadow over Estepona’s real estate market. Sales were impacted as uncertainties abroad influenced the decisions of potential buyers. However, amid the challenges, a silver lining emerged as buyers from different corners of the globe, notably Polish and Canadian nationals, increasingly found Estepona appealing. Their interest injected a fresh wave of diversity into the market, offering a counterbalance to the challenges posed by economic uncertainties in traditional buyer markets such as Sweden.

As we close the chapter on 2023, Estepona and the Costa del Sol continue to stand as alluring destinations for those seeking a slice of Mediterranean paradise. The real estate market’s journey, marked by price fluctuations, changing buyer behavior, and global economic influences, serves as a testament to the resilience and adaptability of this vibrant coastal community. Looking ahead, the lessons learned in 2023 will undoubtedly shape the future of real estate in Estepona, promising an intriguing and dynamic landscape for both buyers and sellers alike!

Are you planning on buying in Estepona in 2024? Feel free to get in touch with us here, we would be happy to help you in your search!