Lunada Bay is a highly regarded area of Palos Verdes Estates with a mild climate, good schools, and custom-designed homes in a wide price range. On the upper end of value are the ocean-front homes on Paseo del Mar that feature wide street setbacks, gated approaches, and incomparable ocean views. Nearby in the center of Lunada Bay are smaller homes with entry-level pricing. These are found on both sides of Palos Verdes Drive West. Lunada Bay also offers condominiums and a few townhouses.
Historically, the area north of Palos Verdes High School was known as "Margate," but that identity was lost to a large extent some years ago when several multiple listing services were combined and homes in "Margate" were integrated into the listing of Lunada Bay homes.