Macro-Economic Context
External factors shaped Costa Blanca’s property trends significantly from 2015 to 2025. The period began amid a Eurozone recovery, with ultra-low interest rates and quantitative easing (financial injection by the ECB into Spanish assets) bolstering real estate investment. Mortgage costs were historically cheap through the late 2010s, encouraging both domestic and foreign buyers. The Brexit referendum (2016) introduced uncertainty for British buyers, but demand adjusted rather than collapsed, and Brits still accounted for about 12% of home purchases in Alicante province in 2024, albeit less than previous years.
COVID (2020) brought an abrupt but brief disruption. During the lockdown, property transactions all but froze. Foreign purchases in Alicante province dropped around 30% in 2020 (15,400 sales, down from 22,200 in 2019). Nonetheless, massive fiscal stimulus and remote-work trends turned real estate into a post-pandemic safe haven. By late 2020 and into 2021, demand resurged as buyers sought larger homes with outdoor space. In 2022, to curb inflation, the European Central Bank hiked rates from 0% into the >4% range. Despite this, Costa Blanca’s market remained robust, driven by cash-rich foreign buyers and pent-up demand, even as financing costs rose. Other factors driving home prices up were recovering tourism, low unemployment, and high inflation (which historically pushes European investors towards real estate).
In late 2023 the Spanish government signalled the coming end of the “Golden Visa” (residency via a €500k+ property investment). This would mean a tighter stance on speculative foreign investment, potentially curbing demand from non-Europeans. In addition, the Valencia region imposed stricter short-term rental rules, including licence limits and area bans in stressed areas of the Costa Blanca. This has cooled some investor activity but increased the value of freestanding properties with existing rental licences.
Despite economic jolts like Brexit, COVID-19, interest rate swings, and government policies, the Costa Blanca real estate sector demonstrated strong momentum, underpinned by its international appeal and the increasing demand for the Spanish coastal lifestyle.
Regional Overview: North vs. South
Costa Blanca North and Costa Blanca South present distinct market characteristics within the Alicante province. The northern stretch (roughly from Alicante city up through Benidorm, Altea, Calpe, Moraira, Javea, Denia) is known for its scenic mountainous coastline, upscale ambiance, and traditionally higher property values. Here, development has been more controlled. We find fewer high-density complexes and more villas on larger plots – cultivating an exclusive feel. Prices in Costa Blanca North typically range from €2,500 to €6,000 per m² depending on town and property type, and are significantly higher in hotspots like Moraira or Javea. The buyer profile skews toward affluent Northern Europeans (British, Dutch, German, Belgian, Scandinavian) often seeking second homes or retirement villas with sea views. Lifestyle drivers in the North include picturesque marinas, golf courses, and fine dining; towns like Altea, Moraira, and Javea offer charming old towns and luxury residential enclaves that attract affluent expats.
By contrast, Costa Blanca South (from Alicante down through Santa Pola, Torrevieja, Orihuela Costa to the Murcia border) is characterized by flatter terrain, extensive beaches, and larger urbanizations. Property here has long been more affordable, and attracts a broader international middle-class market. Prices in popular southern areas remain lower. Torrevieja averages around €2,400/m², and one of the most affordable towns, Pilar de la Horadada, sees €2,000–€3,000/m² for new builds. This affordability, combined with a well-established British expat community, has made the South a magnet for retirees and holiday-home buyers from the UK and Ireland. In recent years, Northern and Eastern European buyers have also grown in the Costa Blanca South’s market. Robust communities of Russians (historically), and now Dutch, Belgians, Poles, Romanians, and Ukrainians, have formed around Torrevieja’s urbanizations. The South features a high percentage of new-build developments, offering modern amenities and good rental potential. Lifestyle in the South is defined by convenience, and easy access to entertainment and family-friendly beaches. While both regions enjoy the Costa Blanca’s 300+ days of sunshine, the North’s microclimate (especially in Javea/Denia) is slightly greener, wetter in winter, and cooler in summer, whereas the South is hotter and more arid, appealing to both summer and winter sun-seekers. In summary, Costa Blanca North is boutique and upscale, whereas the South is bustling and value-driven, yet both continue to see strong demand driven by international buyers drawn to the Mediterranean lifestyle.
Costa Blanca Property Price Trends (2015–2025)
Home prices across the Costa Blanca have shown a clear upward trajectory from 2015 to 2025. In 2015, the market was emerging from the post-2008 crash, and prices had bottomed out around 2014 and stabilized. The average price in Spain was about €1,500/m² in 2015, essentially the market had found its floor. In Alicante province and most of coastal Spain, 2015 marked the start of a modest recovery; for example, in Denia (Costa Blanca North), resale home prices hovered around €1,650/m² in early 2015, while in Torrevieja (Costa Blanca South) they were roughly €1,075/m². From 2015 to 2019, prices rose steadily at 5–7% annually, slightly above the national average growth of 4–5%. By 2019, average values had increased to roughly €1,800/m² in Alicante province (a mix of coastal and inland) and around €1,350–€1,400/m² nationally, reflecting a strong recovery.
Key turning points came in the next years. The pre-pandemic peak around 2019 saw high transaction volumes and price growth peaking near 7% year-on-year. In 2020, the COVID-19 shock temporarily stalled price appreciation, however, by early 2021, prices were climbing again. Pent-up demand drove a mini-boom in late 2021 that carried into 2022. Housing prices jumped 8–10% on the Mediterranean coast in 2022, the fastest growth of the decade. The Costa Blanca saw unprecedented real estate activity, with foreign buying sprees (anticipating travel reopening and Brexit deadlines) and locals rushing to lock in low interest rates before expected hikes. Average prices in popular coastal areas soared. Torrevieja reached €1,800/m² by 2022 (up 70% from 2015), and Denia surpassed €2,500/m² by 2022 (up 50% from 2015). The Spanish nationwide average also hit a new high of around €1,900/m² in 2022, finally exceeding pre-2008 levels.
Going into 2023–2025, the pace moderated slightly but remained robust. 2023 saw continued price increases despite fewer transactions. And by January 2024 the Costa Blanca was performing about 9% higher year-on-year, outpacing Spain’s average growth of 6.6% year-on-year. As of early 2025, average listing prices have reached €2,200/m² in Spain, while local markets in the Costa Blanca greatly exceed these benchmarks: Denia and Javea average roughly €2,900–€3,800 per m² in early 2025, while Torrevieja and surrounds average about €2,200–€2,400/m². This means southern coastal prices have doubled since 2015, and northern coastal prices are around 80% higher. Adjusted for inflation, home values are still somewhat below the 2007 peak in real terms, indicating some room for further growth without entering bubble territory.
In summary, the resilience post-COVID and sustained foreign interest suggest that, barring major shocks, the Costa Blanca will continue to see property values creep upward. The region’s relative affordability versus other Mediterranean hotspots (e.g., Malaga Province or France’s Côte d’Azur) means property is often a bargain for international buyers, which underpins the long-term bullish price trend.
Buyer Demographics and Motivations
From 2015 to 2025, the Costa Blanca’s buyer demographics were dominated by foreigners, with international purchasers accounting for nearly 45% (up from 33% in 2015) of all home purchases in Alicante province by 2024, the highest in Spain. The UK remained the top source country, with Britons making 12% of all home purchases in Alicante in 2024. Belgians and Dutch surged in importance, now representing 10% and 8%, respectively. Dutch investment even briefly outpaced UK totals in 2023.
Meanwhile, Eastern European buyers rose significantly, especially in Costa Blanca South. Poles, Romanians, and Ukrainians became key buyer groups. By the mid-2020s, Polish nationals ranked among the top three foreign buyers in the Valencian Community. Romanians, and previously Russians, established strong communities, particularly in Torrevieja and Orihuela Costa.
Buyer profiles also evolved. The typical Costa Blanca buyer in 2015 was a retiree from Northern Europe (50s–70s), but the 2020s brought growth in younger, remote-working buyers. Teleworkers and digital nomads (30s–40s) from France, Germany, the USA, and others sought primary or long-stay homes with internet and home office space. Families from the Netherlands, Belgium, or Spanish cities also relocated for lifestyle reasons, prioritizing international schools and safe, outdoor living.
Buyer motivations expanded beyond retirement and holiday use, and post-COVID, many buyers sought year-round livability, and homes with gardens, pools, offices, and proximity to nature. Rental income remained a strong driver for real estate purchases, with tourist demand rebounding by 2022. However, more buyers now favour homes suitable for long-term living or future relocation.
By 2025, the buyer pool was more international and diverse, expanding from mainly Western European retirees to include more Scandinavians, Eastern Europeans, and citizens from the US, Latin America, and the Middle East. In towns like Algorfa and Rojales, up to 70% of properties are foreign-owned!
Buyer Requirements & Lifestyle Changes
Between 2015 and 2025, Costa Blanca buyers became more selective, prioritizing quality, efficiency, and lifestyle-oriented features.
Once optional, green features like solar panels and high energy ratings are now expected, especially by Northern European buyers. A-rated properties with solar systems, sustainable materials, and EV charging are in high demand, both for eco-consciousness and future-proofing.
Post-2020, home offices became essential. Buyers seek flexible layouts, extra rooms, and strong fibre-optic internet. Open-plan living areas and dedicated workspaces are common, as comfort and efficiency during extended stays is a top priority.
Private terraces, pools, gardens, and proximity to green spaces are now must-haves. The pandemic reinforced the value of outdoor areas, with extras like BBQs, pergolas, and relaxation zones boosting appeal.
Walkable locations near shops and beaches have gained value. Town centres like Javea pueblo, Denia centre, Altea old town, Javea’s Arenal, Playa San Juan, La Zenia, and central Torrevieja are in demand, particularly among retirees and car-free buyers.
Contemporary, low-maintenance homes are strongly preferred. Buyers want open kitchens, modern appliances, and climate control. Turnkey and renovated homes outperform older, dated listings.
Gated communities with pools and wellness areas appeal to both retirees and younger families. Access to medical centres, professional services, shops, and entertainment is a frequent inquiry.
Buyers are more informed about energy ratings and rental licensing. Many now ask if the property has a valid tourist licence, even when buying for personal use.
The most in-demand homes in 2025 are modern, energy-efficient, and well-located. A villa with solar panels, fast internet, a pool, and walkable access to amenities sells quickly. This demand has driven renovations and a gradual uplift in the Costa Blanca’s housing stock, as buyers pay premiums for convenience and long-term value.
New Build vs. Resale
After the 2008 crash, construction all but stopped on the Costa Blanca, and by 2015, the majority of transactions involved resale homes as leftover new builds were absorbed. As recovery gained traction, developers cautiously returned—especially in high-demand areas.
Resale still dominates, but the share of new builds has risen steadily. In 2015, new homes represented a small fraction of sales; by 2023, around 12% of foreign-buyer purchases in Alicante were new builds, up from 9% in 2022. The Costa Blanca South led this growth with new apartment complexes and villas in Orihuela Costa, Pilar de la Horadada, Ciudad Quesada, and Gran Alacant. In the North, stricter planning and limited land kept new development more selective, though towns like Finestrat, Polop, and Cumbre del Sol saw steady activity, including new villa communities.
Many foreign buyers, especially from Northern Europe, prefer modern, turn-key properties with energy efficiency, pools, and gated amenities. Others still prefer resales for their charm, seafront locations, or mature neighbourhoods that are not possible with new builds.
New builds carry a premium, and 30–50% more per m² is common. This premium reflects modern design, high construction costs (especially post-2021), and buyer convenience. In 2022, off-plan homes even sold out before completion, and some buyers flipped contracts for profit.
Construction volume remains well below pre-2008 levels. In key zones, supply of quality new builds is limited, and most get bought quickly. Beachfront high-rises in Calpe and Benidorm and golf communities like Las Colinas and La Finca continue to attract strong demand, especially from Belgians, Dutch and Scandinavian buyers.
The resale market is split. Renovated or well-maintained resales sell fast and sometimes reach new-build pricing, especially in prime areas like Javea and Moraira’s coastal zones. Older or outdated homes can linger unless discounted. This has fuelled a growing renovation industry, (especially in the Northern Costa Blanca) with comprehensive upgrades helping owners to compete.
In summary, buyers who want modern, low-maintenance homes buy new, and those who value location or character choose resale. As of 2025, both segments are benefiting from rising demand, with new builds selling at record prices due to cost pressures and strong foreign interest.
Costa Blanca Rental Market Overview (2015–2025)
The Costa Blanca’s rental market has evolved significantly over the past decade, shaped by tourism trends, tighter regulations, and growing demand for long-term lets.
The Airbnb boom of the mid-2010s led many buyers to target holiday rental income, especially along key coastal areas of the Costa Blanca (Orihuela Costa, Benidorm, Calpe, Altea, Moraira, Javea). By 2019, yields from tourist rentals often outperformed long-term leases. However, rising complaints about “touristification” and housing shortages prompted regional authorities to impose licensing rules. Towns like Jávea capped new licences in 2024, citing that 20% of homes were already vacation rentals. Denia and Calpe considered similar limits.
COVID-19 temporarily halted short-term lets, but by 2022–23, rental demand returned to record highs. Alicante province tourist rental prices rose 11% in 2023 to an average of €125/night for 2-bedroom units. In 2024, new regulations required tourist licences and compliance (e.g., air conditioning, safety checks), with fines for non-compliance.
As more expats settled permanently, long-term rents rose sharply. In 2025, Alicante province’s average rent reached €12/m², up 8.4% from the previous year, and one of Spain’s fastest increases. A typical 100 m² flat now rents for €1,200/month, double the amount in 2015! Even Torrevieja, once known for low rents, saw significant hikes due to foreign demand.
Affordability concerns led to national rent caps in 2023 and talk of public housing incentives, though enforcement varies. Still, both short-term and long-term segments offer solid investment potential.
By 2025, gross yields for holiday lets average 5–7%, and long-term rentals around 4–5%. This income potential attracts “lifestyle investors” from the UK, Belgium, and the Netherlands who use properties part-time and rent the rest of the year.
Some towns introduced zoning rules to limit tourist rentals in residential zones. Alicante considered restrictions in its old town. While blanket bans haven’t materialized, local authorities are tightening oversight to preserve community balance.
Costa Blanca’s rental market remains strong but more regulated. High occupancy and solid returns make both short and long term rentals reliable income streams that also supports rising property values.
Notable Trends by Year (2015–2025)
2015: Market recovery begins. Prices stabilize post-crisis; foreign buyers (around 17.500) return to Alicante. Minimal construction. Euro weakness attracts non-Europeans. Sentiment: cautious optimism.
2016: Brexit referendum causes brief UK slowdown. Prices rise 3 to 5%. Foreign demand grows; Belgian and Dutch interest up in Costa Blanca North. Credit loosens; confidence returns.
2017: Broad expansion. Brits remain top buyers. Prices rise 5 to 7%. Scandinavian demand surges. Construction ramps up in Orihuela Costa, Benidorm, and Finestrat.
2018: Peak pre-Brexit British demand. Over 20.000 foreign transactions. Prices up 6 to 8%. New builds sell off-plan. Rental tourism boom starts. It’s a seller’s market.
2019: Foreign purchases hit 22.200 (record). Price peak. Fewer German and Nordic buyers as currencies weaken. Inventory tight in key zones like Javea, Moraira and Torrevieja.
2020: COVID stalls market in Q2. Sales drop 30%. Prices hold. Villas gain interest. Remote work and second-home demand emerge. Year ends stable with 1–2% price dip.
2021: Rebound. Sales and prices bounce back. Foreign buyers up 40%. Digital nomads arrive. Construction costs rise.
2022: Record year. Almost 32.000 foreign purchases. Brits strong despite Brexit. Polish buyers grow. Prices surge 8–10%; Javea/Moraira luxury real estate gains 15%. Rentals perform well. Market shows signs of overheating.
2023: Cooling phase. Sales down 5%. Swedish market slows. Ukrainians, Poles, and Latin Americans up. Prices still rise 4–6%. Regulation ramps up: rental licensing in focus. Inventory improves.
2024: Growth resumes. Prices up 6–9% from 2023. Buyer mix expands: Italians, Moroccans, North Americans. Digital nomads settle in. Torrevieja, Orihuela Costa active. Developers cite supply bottlenecks.
2025: Market at peak. Prices at record highs. 50% of buyers foreign. Forecast: 4–6% growth, possibly 10% in hotspots. Risks: regulation, rising rates. Outlook: resilient with strong fundamentals.
Costa Blanca Real Estate Market Forecast (2025–2028)
The Costa Blanca property market is expected to stay strong, though with steadier growth compared to the early 2020s. Sunshine, lifestyle, and relative affordability remain key drivers.
International buyers are the backbone of the Costa Blanca property market – they have higher budgets and help drive local economies. British demand continues, supported by non-lucrative and digital nomad visas. Northern European interest (Benelux, Scandinavia) will likely strengthen as the area becomes more ‘discovered’ back home. Eastern Europeans (Poles, Czechs) will likely grow further in the South, driven by rising incomes and existing expat hubs. Non-EU high-net-worth buyers (from the U.S., Canada, Middle East) may also increase, even without Golden Visas, as Spain’s global appeal rises.
Prices are forecast to rise moderately through 2028, around 4–6% annually. Drivers include strong foreign demand, high construction costs, and tight inventory. As with areas of the Costa del Sol, growth will be uneven. Prime areas (seafronts, town centres) should outpace inland zones. Interest rates could temper mortgage-reliant buyers mid-decade, but no major correction is expected due to end-user demand and limited supply.
Expect new builds concentrated around Benidorm-Finestrat, Polop/La Nucia, Orihuela Costa, and Torrevieja’s fringes (e.g. Villamartin, Los Balcones). Inland areas like Algorfa and Daya Nueva will expand with budget-friendly detached villas targeting retirees. New build supply will remain controlled and in some cases even capped to avoid infrastructure bottlenecks and to not overstress water, sewer, or transport systems. These ‘stricter’ urban planning laws help moderate growth (no overbuilding) and help maintain price stability.
Upgrades to Alicante airport and Mediterranean Corridor rail (including a possible Alicante-Murcia AVE) will boost accessibility. More direct flights to Europe (e.g. to Poland, Scandinavia) will broaden buyer demographics. Better transport links may raise property values in inland and second-home commuter zones.
The market should stay attractive to investors, due to solid rental yields, strong tourism, and increased demand. Year-round promotion (digital nomads, winter sun) supports demand. While Spain may impose future limits (e.g. on empty homes or non-resident purchases), no major restrictions exist now.
External risks include recessions in source countries (UK, Germany), currency fluctuations, and sustained high interest rates through 2026. If affordability for locals worsens, pressure may build for stricter rent controls or social housing—but mainly in urban centres. For now, the Costa Blanca’s international appeal offers a buffer against broader economic headwinds.
Costa Blanca Towns and Neighbourhoods to Watch
Jávea (Xàbia): A top pick for expats with its old town, Arenal beach, and villa zones like Tosalet. High-end market (around €3,800/m² in 2025) attracts both families and retirees. Limited supply, international schools, and a tourist rental moratorium reinforce exclusivity.
Denia: More affordable than Jávea, but catching up. Long beaches, a port to Ibiza, and culinary reputation draw Spanish and foreign buyers. Port upgrades and remote work trends boost its appeal. Commutable to Valencia, making it attractive to younger expats.
Investor Interest: The residential area opposite the new marina. A lack of luxury accommodation for affluent travellers.
Moraira: Boutique, low-rise, and luxury-focused. High per m² prices (often €5,000+) and strict planning limit supply. British, Dutch, and Belgian buyers dominate. New eco-luxury homes reflect buyer demand for privacy and quality.
Investor Interest: Expect a facelift for the commercial corridor along Moraira to Calpe coastal road (from Ampolla Beach to Pepe La Sal). Watch areas along this route like Moravit and Cap Blanc.
Altea: Artistic with iconic views and split market: charming townhouses and apartments vs. luxury Altea Hills villas. Marina and boutique apartment projects attract affluent buyers. Controlled development helps preserve value.
Benidorm & Finestrat: Benidorm is seeing a high-rise revival (e.g., Intempo Tower) with strong rental yields. Finestrat offers hillside new builds aimed at foreigners wanting views and space near entertainment. Infrastructure supports growth.
Investors be cautious: New build prices in Finestrat at top market value.
Torrevieja: The south’s high-volume, budget-friendly leader. Wide buyer base (British, Irish, Eastern Europeans). Ongoing promenade upgrades and push for digital nomads signal gradual repositioning. Resale market dominates due to land limits.
Investor Interest: Real estate near port, and Playa del Acequion.
Orihuela Costa: Suburban coastline south of Torrevieja with varied communities like La Zenia and Villamartín. Popular for golf, gated developments, and new builds. Remains affordable (€1,800–€2,500/m²) and attractive to foreign retirees and families.
Inland Growth Zones: Jalón/Orba valleys (north) and Rojales/Algorfa (south) attract those seeking value, space, and quiet. With growing infrastructure, these areas suit retirees and yield-driven investors. Some towns have over 70% foreign ownership.
Overall, the outlook through 2028 is positive. The Costa Blanca is expected to maintain its status as one of the most dynamic real estate markets in Spain. Seller confidence is high, and buyer interest remains global and now multi-generational, providing a broader base of demand. While growth rates may normalize, the combination of lifestyle appeal, improving infrastructure, and limited coastal land suggests values will keep trending upward. The era of double-digit annual price hikes might be over for now, but steady growth in the mid-single digits, coupled with rental income opportunities, presents a compelling case for Costa Blanca real estate over the next few years.
Are you looking to purchase a home in the Costa Blanca? What areas interest you the most?
