Revitalised Costa del Sol: Economic Boom Spurs Ambitious New Projects

The Costa del Sol’s economy has been buoyant since the end of the Covid lockdowns, registering records in property sales and tourist visits. The post-lockdown period has seen an unprecedented surge in economic activity, driven by a combination of pent-up demand, renewed consumer confidence, and strategic investments. This remarkable recovery has not only revived the local real estate market, with property sales hitting all-time highs, but has also reinvigorated the tourism sector, which remains a cornerstone of the region's economy.

This economic revitalization has sparked a wave of new business dynamism, with entrepreneurs and established companies alike seizing the opportunity to innovate and expand. The influx of tourists and new residents has created fertile ground for diverse ventures, ranging from hospitality and entertainment to technology and sustainable development.

Consequently, ambitious new projects are being launched, aimed at enhancing the region's infrastructure, cultural offerings, and overall quality of life. These projects are not only a testament to the region's resilience but also serve as a catalyst for sustained economic growth, creating jobs and attracting further investment, thus setting the stage for a prosperous future for the Costa del Sol.

• Table of contents
• Málaga Tech Boom: Driving Growth and Innovation
• Marbella challenges Málaga as a Tech-hub
• New projects in Estepona
• The Estepona Marina
• New Starlite concert venue
• University of Estepona
• Other infrastructure improvements

Málaga Tech Boom: Driving Growth and Innovation

The tech scene in Málaga remains buoyant, with growth coming from the likes of the IMEC (Interuniversity Microelectronics Centre) establishing a specialist chip technology facility in the city’s tech hub, along with Swedish fintech company Brite, which is looking to expand its operation in Málaga, as will Kadans Science Partner from The Netherlands.

British-based IWG (International Workplace Group) opening a third co-working centre in the city and Vodafone, which will create 400 new jobs at its Málaga operation, with Spanish digital transformation company Serviform following suit with 150 new posts. IT consultancy Consoleco has also moved to the city, while Mastercard will be using the provincial capital as a pilot destination for one of its AI projects. It is fair to say that the Málaga Tech Park is thriving, ending 2023 with revenue of almost €3,5 billion and employing over 25,000 people – increases of almost 25% and 2,8% respectively. The number of companies present grew by 5% to reach over 70 non-Spanish corporations from 21 countries. Not surprisingly, new flights are being added to Malaga Airport such as those of United Airlines to the USA and Qatar Airways direct to Doha and we are seeing an expansion in the number of executives and businesspeople relocating to the Costa del Sol.

For now, the only thing missing is a railway line between Marbella and Málaga, but a high-tech solution seems to have been found, in the form of pilot-less air taxi drones that will create an air taxi service Málaga to Marbella starting in 2026. The VTOL (vertical lift-off) Lilium Jets will take off from Málaga Airport and take about 20 minutes to reach Marbella, at a cost of €2 per passenger and kilometre travelled, which amounts to about 100 euros per person. High-tech really is coming to the Costa del Sol.

Marbella challenges Málaga as a Tech-hub

After Málaga, Marbella is now also fast becoming a centre for tech and other start-ups, which spill-over from Málaga’s Tech Valley adding to the existing entrepreneurial spirit in the town. For many years this was dominated by foreign investors and businesspeople, but in recent times they have also increasingly been joined by locals keen to move away from the traditional Spanish focus on the more static civil service and lifelong careers with larger companies. The city rose 190 places on the international ranking of Best City to found a Start-up, and it shows in the growth of diversified businesses and co-working spaces.

New projects in Estepona

The Estepona Marina

Perhaps the most ambitious town of all in recent times has been Estepona, which is planning a major overhaul for its marina, where a sleek new yacht harbour with adjacent restaurants, cafes, boutiques and other leisure facilities is set to arise. The aim is to create a 57,000m2 marina that will become a benchmark for design and sustainability, with the inclusion of a desalination plant and improvement to wastewater sanitation. Technology, for instance in the form of electric charging points, will feature heavily, and the project will take the marina significantly upscale. One of several new hotel projects in the Estepona area is the 253-room Mett Marbella-Estepona Hotel, which involves an investment of €27 million by the Sunset Hospitality Group and will employ almost 250 people locally.

New Starlite concert venue

The Starlite Festival is one of the highlights of the year in this part of Spain, marking the peak of the summer season. So much so, that it has become a tradition as well as a roaring success whose formula encompasses not only top Spanish and international artists, but also a very high standard of hospitality and entertainment. Part of the success can be attributed to the richly atmospheric setting within an old quarry at the base of Marbella’s La Concha Mountain. Such has been the demand, however, that the organisers have embarked upon a large-scale project that will feature a brand new Starlite concert venue near Selwo (Estepona East). The 15,000-seater will be accompanied by purpose-built hospitality and leisure facilities, as well as a hotel and conference centre, set in a location conveniently close to Estepona, San Pedro Alcántara and Marbella. The project, which involves an investment of €286 million and will also be built in a quarry environment, will create 450 jobs.

University of Estepona

Estepona is certainly a centre of activity, as the green light has now also been given for the creation of a university in this upwardly mobile town, the second private campus in Andalucía, after the University of Loyola. A new campus will be built, the latest in a range of new infrastructures that has also seen an orchidarium, athletics stadium, theatre and conferencing centre, and new hospital added to the town in recent years, not to mention a beachside pedestrian boulevard that is almost complete. Until the new facility is ready, the university will be using space at the Centro Cultural Padre Manuel, provided free of charge by the Estepona town council via the Santo Cristo de la Vera Cruz charity construction association, on the proviso that it be used by the university. Part of the network of SEK educational institutions, the new university will be located within the Guadalobon area.

Other infrastructure improvements

Meanwhile, Fuengirola is moving ever closer to the opening of its beautifully styled new ‘eco produce market’, a €12 million project that has been enthusiastically welcomed by local residents and businesses. The old market was an architectural eyesore from the 1970s, and most people can’t wait to buy natural produce – much of which will now be ecologically focused – in the attractive new centre. The project is funded by the local townhall from a budget surplus in 2022 and will be ready by spring 2025.

Pia Arrieta, 18 Jun 2024 - News