Up-and-coming areas of the Costa del Sol: where to look before everyone else does

When someone asks me which are the up-and-coming areas of the Costa del Sol, my first answer usually isn’t the name of a town, but a question back: what exactly do we mean by “up-and-coming”?

An area doesn’t become a good opportunity simply because its properties cost less than in Marbella or Puerto Banús. For me, what’s interesting is when several factors come together: new developments, better services, good connections, demand from both national and international buyers, and above all, a quality of life capable of sustaining the area’s appeal over the long term.

After more than fifteen years working in the Costa del Sol property market, I’ve seen how certain areas that used to be off many buyers’ radar have gradually gained prominence. Right now, much of that movement is happening towards the west. These are the areas worth knowing about if you’re looking for a home, a second residence, or considering an investment.

If you’re still comparing locations, you can start with my Costa del Sol area guide, where you’ll find information on the main markets I work in.

What makes an area of the Costa del Sol “up-and-coming”?

I’m not looking for the cheapest place. I’m looking for a place that has reasons to attract more people in five or ten years than it does today.

The appearance of new-build and off-plan developments is an interesting sign because it usually comes with investment and a gradual improvement in the residential offering. I also look at accessibility, proximity to established hubs, the services available, the profile of who’s buying, and the lifestyle the area offers all year round — not just in August.

The Costa del Sol has an important quirk: two towns just twenty minutes apart can be at completely different points in their property cycle. That’s why I recommend comparing areas, and especially micro-areas. I wouldn’t choose a property simply because someone has labelled the municipality “up-and-coming”.

1. Manilva: one of the areas with the most room to be discovered

Manilva is probably one of the names that makes the most sense when we talk about up-and-coming areas on the western Costa del Sol. It’s located just past Estepona and very close to Sotogrande and Gibraltar, but its market still has a different character from these more established destinations. And that’s precisely where much of its appeal lies.

The municipality isn’t a single area. It includes very different places such as San Luis de Sabinillas, Puerto de la Duquesa, La Chullera and Bahía de las Rocas, along with various urbanisations spread between the coast and the inland hills. For buyers who want sea, good connections and relatively quick access to Estepona, Sotogrande and Gibraltar, it can be an interesting option. There’s also a mix of permanent residents, second-home owners and visitors, which gives the area a life that goes beyond the summer.

If you’re considering buying here, my Manilva property guide lets you get to know its different areas, beaches, properties and lifestyle in more detail. And if you’re thinking about renting the property out when you’re not using it, it’s worth reading first about how tourist rental licences in Manilva work, because registration is mandatory and not every community allows it.

Who could Manilva suit?

I’d especially consider it for anyone looking for a second home, for buyers who want more square metres for their budget, and for those exploring the western Costa del Sol without needing to settle in the better-known markets. If the focus is investment rather than personal use, I go into the reasoning in investing in a property in Manilva.

That said, Manilva is large. Buying well here means moving from the municipality level down to the individual urbanisation and analysing orientation, views, access, services and the property’s specific characteristics.

2. Casares Costa: the coastal stretch between Estepona and Manilva

Casares Costa has been gaining attention for a while and has something hard to replicate: its location. It occupies the stretch of coastline running from the Estepona boundary to Manilva, within the corridor connecting the town of Estepona with Sotogrande, and residential projects aimed at buyers looking for contemporary design, golf, sea views and tranquillity keep appearing there.

Casares Costa shouldn’t be confused with the village of Casares, which is about seven kilometres inland, up in the hills. The municipality offers very different settings, from areas close to the Mediterranean to urbanisations around golf courses like Finca Cortesín or Doña Julia. For me, one of its strong points is precisely that combination: it allows you to live in a relatively quiet setting without being disconnected from two important property hubs.

It can also be interesting for international buyers considering a holiday home that could turn into a longer stay in the future. Here I’d pay attention not just to the entry price, but also to the quality of the development, access, nearby services, and the type of buyer who might be interested in that property when you decide to sell it. You can find out more in my Casares guide, and if you’re considering living here permanently, in my analysis of the pros and cons of Casares for expats.

3. La Alcaidesa: an area that’s changing scale

La Alcaidesa deserves a special mention. For years it’s been closely associated with golf, Mediterranean views and its proximity to Gibraltar and Sotogrande, but its property profile is evolving with new residential projects and an offering increasingly geared towards the quality segment.

It’s worth placing it properly: it belongs to the municipality of San Roque, already in the province of Cádiz, and stretches between Sotogrande and La Línea de la Concepción with direct access to the A-7. It combines beach, golf courses, nature and an international community. From a property perspective, that proximity to Gibraltar also generates permanent residential demand that’s different from purely holiday demand, and that changes how the market behaves over winter.

This doesn’t mean every property in La Alcaidesa is going to appreciate in value. It means we’re looking at an area whose residential offering is evolving and which deserves to be assessed property by property.

You can get to know the market much better in my La Alcaidesa property guide. If you’re comparing micro-areas within La Alcaidesa itself, I also wrote about the best areas to live in La Alcaidesa, where I distinguish between the marina, the golf area and Alcaidesa Alta. And if you’re crunching numbers, my analysis of the cost of living in La Alcaidesa will be useful.

4. West Estepona: looking beyond the centre

Is Estepona still an up-and-coming area? The town as a whole can no longer be considered unknown: it’s one of the most important property markets on the Costa del Sol. However, talking only about “Estepona” is too generic.

Over recent years its residential expansion has spread interest towards different areas around the town centre, and when I’m looking for opportunities I’m more interested in reasoning by micro-area than treating the whole town as a single market. The west is especially interesting for its natural connection with Casares and Manilva, and for the development of new projects around Arroyo Vaquero and Bahía Dorada.

Estepona’s appeal remains very well-rounded: beaches, old town, restaurants, golf, services, and connections to both Marbella and Gibraltar. The variety of properties also means you can find very different profiles, from contemporary apartments and holiday homes to villas and new-build developments. My Estepona property guide will help you get to know the different areas better before deciding where to buy.

5. San Roque and the Sotogrande area: growing alongside a premium market

There’s another interesting strategy when looking for areas with room to grow: observing what’s happening around very well-established markets. Sotogrande is the best example. Its name has been associated for decades with villas, golf, polo, a marina and high-end properties, and that creates an ecosystem that also influences the surrounding areas.

San Roque Club and other developments in the area can attract buyers looking for access to the Sotogrande lifestyle while valuing different residential alternatives. Here I wouldn’t talk about opportunity through low price. The logic is different: growth supported by proximity to an established premium destination.

For buyers with a larger budget, this corridor deserves a detailed look, as there’s a significant supply of contemporary properties, new developments and high-end projects. If this is the profile you’re looking for, I recommend checking my Sotogrande guide to compare areas such as Sotogrande Costa, Sotogrande Alto, La Reserva and the Marina. And if golf is also a criterion for your purchase, I wrote specifically about buying apartments near golf courses.

What’s the best up-and-coming area to invest in on the Costa del Sol?

There’s no single answer, and I’d be wary of anyone who told me there was. The best area depends on what you want to achieve with the property.

If you’re looking for a second home near the sea, you could consider Manilva or Casares Costa. If you want proximity to Gibraltar, La Alcaidesa carries a lot of weight. If you’re after urban services and a town that functions year-round, certain areas of Estepona fit better. And if your goal sits within the high-end market, the Sotogrande and San Roque area calls for a different kind of analysis.

That’s why I always start with the buyer, not the map. Budget, frequency of use, need for rental income, ownership horizon, lifestyle preferences and possible future resale should all be part of the decision from the start. And if you have school-age children, choosing an international school often shapes the area more than the property itself.

What to check before buying in an up-and-coming area

A label like “up-and-coming” should never replace the analysis of a specific property. I’d particularly check five things:

  • What projects and services genuinely exist, and which are still at the planning stage.
  • What the access routes are like and how long it takes to reach the places you’ll actually use.
  • What kind of demand exists year-round, not just in high season.
  • What new-build and resale supply will compete with your property when you want to sell.
  • Whether the property would still make sense to you even if future appreciation turned out to be lower than expected.

That last point is the most important one. A property should have enough fundamentals today, without relying exclusively on what we expect to happen tomorrow.

Buying before an area becomes established

One of the advantages of knowing a local market thoroughly is spotting changes before an area becomes the obvious choice for everyone. But that doesn’t mean constantly chasing “the next Marbella”.

Often the opportunities are quite a bit less spectacular than that phrase suggests: a well-located development within an otherwise mediocre urbanisation, an area that’s starting to improve its services, or a town near an established market that offers a reasonable alternative to a buyer profile that didn’t previously consider it. It’s rarely the whole municipality that appreciates in value. It’s usually specific streets, urbanisations and orientations.

That’s why my way of working remains the same after all these years: first understand what the buyer is really looking for, then find the location and property that fit that goal. The map comes at the end, not the beginning.

Considering where to buy on the Costa del Sol?

If you’re looking into up-and-coming areas to live in, buy a second home, or invest, tell me what you’re looking for and we’ll compare specific areas and properties, not just names on a map. You can also browse the available listings directly in Manilva, Casares, Estepona and La Alcaidesa.

Frequently asked questions about up-and-coming areas of the Costa del Sol

Which areas of the Costa del Sol have growth potential?

On the western Costa del Sol it’s worth watching markets such as Manilva, Casares Costa, La Alcaidesa, and certain expansion areas around Estepona, San Roque and Sotogrande. The specific potential will always depend on the micro-area, the property, and the timing of the purchase.

Is Manilva a good area to invest in?

It can be interesting for certain profiles thanks to its location between Estepona, Sotogrande and Gibraltar, and the diversity of properties available. However, each urbanisation needs to be studied separately, rather than treating Manilva as a single, uniform market.

Is Casares Costa an up-and-coming area?

Casares Costa is gaining visibility among buyers thanks to its location on the coast between Estepona and Manilva, its residential offering, and the presence of developments close to the sea and golf. That doesn’t mean every property there has the same potential.

Is La Alcaidesa a good area to buy a property in?

It can be especially interesting for those who value beach, golf, tranquillity and proximity to Sotogrande and Gibraltar. It belongs to the municipality of San Roque, and the arrival of new residential projects is progressively changing its property offering.

Is it better to buy in an up-and-coming or an established area?

It depends on the buyer. An established area offers a more well-known demand history and set infrastructure. An up-and-coming area can offer different opportunities, but requires more careful study of the developments, services, demand and the property’s specific characteristics.

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