Estepona Short Term Rental Market Trends May 2026

The Estepona short-term rental market continues to demonstrate strong growth, with rising guest demand, longer booking lead times, and increased occupancy levels across the town. Based on an analysis of 993 active short-term rental properties over the past 365 days, the data highlights a market that is becoming increasingly mature, competitive, and resilient.

Strong Growth in Guest Demand

A total of 32,019 bookings were recorded across the market during the past year, representing a significant 15.85% increase compared to the previous 12-month period. This growth reflects Estepona’s increasing popularity as a year-round destination on the Costa del Sol, attracting both international holidaymakers and longer-stay visitors. The increase in bookings, combined with improving occupancy and revenue metrics, indicates that demand is currently outpacing supply growth in many parts of the market.

Guests Are Booking Further in Advance

The median booking window has increased from 28 days to 34 days, showing that travellers are planning their stays earlier than before. This trend is particularly noticeable during peak summer months, where guests book an average of 43.2 days in advance.

For property owners and managers, this is an encouraging sign of market confidence and stable future demand. It also highlights the importance of maintaining competitive pricing strategies and ensuring calendars are released early enough to capture advance bookings.

Longer Average Stays Becoming More Common

The median length of stay increased from 4 nights to 5 nights over the past year. This shift suggests that Estepona is attracting more extended leisure stays, remote workers, winter sun travellers, and family holidays.

Longer stays can help property owners reduce operational costs associated with frequent turnovers while also improving occupancy consistency throughout the year.

Revenue and Occupancy Continue to Improve

The market has experienced considerable improvements in:

• Average Revenue
• Average Occupancy
• RevPAR (Revenue Per Available Rental)
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These indicators suggest that properties are not only securing more bookings, but are also achieving better utilisation throughout the year.

Interestingly, ADR (Average Daily Rate) remained relatively stable despite the growth in demand. This may indicate that the market is currently balancing pricing competitiveness with occupancy optimisation rather than relying solely on higher nightly rates.

The number of active listings also remained broadly unchanged, suggesting that current revenue growth is being driven primarily by stronger guest demand rather than major increases in supply.

Peak Season Performance

The strongest performing months in Estepona remain July, August, and September, which together generate approximately 37.9% of total annual revenue.

During these peak months:

• Average ADR reached €135.20
• Average monthly revenue reached €3,101
• Guests booked significantly earlier than average
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This reflects Estepona’s continued strength as a summer coastal destination, with high occupancy levels driven by European tourism and family travel during school holidays.

Low Season Market Conditions

January, November, and December represent the softer seasonal period for the market. During these months:

• Average ADR drops to €90.80
• Average monthly revenue averages €1,408.70
• Booking windows shorten considerably to around 18.7 days
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The shorter booking window during low season suggests more spontaneous travel behaviour and increased price sensitivity among guests.

However, the low season still contributes 17.2% of annual revenue, demonstrating that Estepona maintains a relatively healthy year-round tourism base compared to many purely seasonal destinations.

Market Outlook

Overall, the Estepona short-term rental market remains in a strong growth phase. Rising booking volumes, improving occupancy levels, and longer stays all point toward sustained demand and increasing market maturity.

Property owners who focus on the following strategies are likely to continue outperforming the wider market:

1. Professional presentation
2. Dynamic pricing
3. Guest experience
4. Year-round marketing & availability

As booking windows continue to extend and competition increases, proactive revenue management and early calendar optimisation will become increasingly important for maximising annual returns.

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Copyright : Iberia Living Management SL 2026.