Orihuela Costa Property Price Trends (2015–2025)
2015–2016: Post-crisis bottoming; market stabilized and began recovering. Foreign purchases (17.500 homes in 2015 for Alicante) returned. Brexit (2016) briefly cooled UK buying, but overall prices rose 3–5%.
2017–2018: Broad expansion. Northern Europeans (Brits, Scandinavians) bought actively. Prices jumped around 5–8% each year. Developers launched major Orihuela Costa complexes. The pre-Brexit peak in 2018 saw foreigners buys 23.000 homes in Alicante (villas especially popular).
2019: Record foreign transactions. Some currency headwinds slowed German/Scandinavian buyers, but British demand (buy before Brexit) kept prices high. Supply tightened in hotspots.
2020: COVID pandemic stalled sales (30% drop). A short lockdown paused activity, but prices held nearly flat as buyers looked for larger homes with outdoor space. Villas outperformed apartments. By late 2020 demand rebounded.
2021: Vigorous rebound. Sales and prices climbed (1–2%). Foreign buyers surged (+40%), including many digital nomads. Construction costs and limited land began pushing values.
2022: Peak year. Foreign purchases hit record 32.000 transactions in Alicante (the British still dominating with 15% share). Strong tourism and inflation hedge buying drove prices up 8–10%. Orihuela Costa average home prices reached new highs.
2023: Cooling phase. Sales slowed (–5%) and price growth eased to 4–6%. Swedish and UK demand softened (post-Brexit); belated gains came from Eastern Europeans (Ukraine +35% in Alicante). New rental regulations (licensing) began to impact. Inventory improved somewhat.
2024: Further growth resumed. Buyers diversified (Italian, Moroccan, North American interest). Digital nomads and work-from-home buyers grew significantly. Inventory remained tight in popular zones; developers warned supply bottlenecks were limiting new deliveries.
2025-2028 (Forecast): Modest yearly gains (3–4% predicted). Low new inventory keeps upward pressure, but high borrowing costs and regulations temper exuberance. Overall, Orihuela Costa is at or near peak prices.
Orihuela Costa Buyer Demographics and Trends
Orihuela Costa’s real estate landscape is dominated by foreign buyers, especially in urbanisations like Villamartín, La Zenia, and Playa Flamenca. In some areas, foreign ownership exceeds 70%, reflecting the area’s reliance on international demand. Domestic buyers, typically from Madrid, Valencia, and Murcia, focus on second homes for summer use, often purchasing smaller apartments or older villas for renovation. Foreigners tend to spend more per transaction and are often cash buyers, particularly retirees.
British nationals remain the single largest group by volume, although their market share has declined slightly since Brexit. In 2023, Brits accounted for 3,950 property purchases in Alicante province, about 15% of the total. Belgian (3,150) and Dutch (2,720) buyers now rival them in volume, with many choosing Orihuela Costa’s newer developments and golf properties. German and Scandinavian buyers (especially Swedish and Norwegian) remain active, often choosing modern resale apartments close to the coast or golf.
Eastern Europeans are a fast-growing segment. Polish buyers (2,200 in 2023) and Ukrainians (+35% from 2023) have moved from budget buyers to mid-range investors, attracted by affordability, safety, and lifestyle. A North American trickle, particularly from Canadians and Americans, has emerged due to interest in EU lifestyle relocation. Irish, French, and Italian buyers round out a diverse pool, with Irish retirees particularly concentrated in coastal zones like Campoamor and Punta Prima.
From 2015 to 2018, the bulk of buyers were retirees (ages 55–75), often looking for lifestyle upgrades and winter sun. Since 2020, there’s been a clear shift toward younger, more mobile buyers. Popular profiles include families seeking holiday homes with rental potential, younger retirees (early 60s) downsizing from Northern Europe, and mid-career professionals relocating or semi-retiring earlier. Buyers today often purchase for part-time personal use, rent it seasonally to cover costs, and plan eventual retirement there.
Spain’s 2023 Digital Nomad Visa opened the door to long-stay, non-EU professionals with remote income. This buyer profile values Orihuela Costa for its connectivity, affordability, walkability, international community, fibre internet, and year-round cafés/workspaces. Nomads tend to rent first, but many transition to ownership within 1–2 years.
Orihuela Costa has one of the most diverse buyer mixes on the Costa Blanca, which offers resilience against fluctuations from any single market.
Orihuela Costa Buyer Requirements, Preferences and Lifestyle Trends
Buyers in Orihuela Costa are increasingly seeking turnkey, low-maintenance homes with modern finishes and energy-efficient installations. Spacious flats with large terraces and gated villa estates with communal pools are particularly in demand. Golf-front condos in areas like Villamartín and Cabo Roig are especially attractive for Northern European retirees and holiday investors, offering scenic views and easy access to leisure facilities. Townhouses and duplexes with rooftop solariums are also popular, especially those in secure complexes with shared amenities such as gyms and paddle tennis courts. Older 1980s–1990s resale properties have lost some appeal unless fully renovated, as today’s buyers (more Northern Europeans) are less willing to take on extensive refurbishment projects.
With electricity prices rising across Europe, over 80% of buyers value homes with solar panels, double glazing, good insulation, efficient HVAC systems, smart home systems and high EPC (Energy Performance Certificate) ratings. Properties with Class A or B ratings can sell faster and attract a premium of up to 5%.
Post-COVID, demand has decisively shifted toward properties offering private or semi-private outdoor areas. Buyers prioritize terraces, balconies, gardens, and rooftop solariums as essential lifestyle features—not luxuries. Beachside and greenbelt-facing homes with direct views or immediate access to open space (parks, promenades, dog-friendly zones) often command 10–20% price premiums.
Fast, reliable internet is non-negotiable, especially for younger buyers and professionals who work remotely. Many prioritize properties with a designated home office or adaptable working spaces. Access to leisure (beaches, golf courses, cycling paths, restaurants, etc.) is important as buyers are increasingly lifestyle-driven and looking for a balance between comfort, convenience, and year-round enjoyment rather than just holiday home functionality.
New Build vs. Resale Dynamics
New-build supply in Orihuela Costa, and especially in La Zenia, Villamartín, San Miguel de Salinas, Lomas de Cabo Roig, and Playa Flamenca, has grown steadily over the past decade. However, resale properties still dominate the market, particularly among foreign buyers. Many investors who purchased during the 2014–2018 boom either flipped their properties for profit during the 2021–2023 price surge, or continue to rent them out. As a result, there’s a constant supply of updated, rental-ready resale units that move quickly when listed.
While new-build projects (medium-rise apartment complexes or gated villas) continue to attract interest from first-time foreign buyers seeking modern design and amenities, resale properties are often more competitively priced, with better locations near the beach or established zones. Many properties in Orihuela Costa come fully furnished with existing tourist licenses, making them attractive for immediate rental use. However, buyers should always verify whether the tourist license is transferable, as in most cases the new owner must formally assume or reapply for the license to ensure it remains valid under their name and meets the latest legal requirements.
Local planning controls now limit the total number of new units to prevent overdevelopment, particularly in coastal pockets. This ensures resale stock remains in high demand. Renovated townhouses, 2–3 bedroom apartments with terraces, and older villas in quiet residential streets (e.g. La Regia, Blue Lagoon, Los Dolses) are especially popular with buyers who want space and value without waiting on off-plan delivery timelines.
Orihuela Costa Rental Market Overview (2015–2025)
Holiday rental demand is very high. Occupancy on platforms like Airbnb sits around 60% yearly (peaking in summer). Average daily rates are €90 and a typical Orihuela Costa holiday home earned around €20K in 2024. Both Spanish and foreign landlords (Brits, Belgians, Scandinavians) capitalize on summer and golf tourism. Short-term yields can exceed 10% (gross) for well-situated apartments in high season!
The long-letting market is tight. As of 2025, the average asking rent was €12.30/m² per month and about €920 for a 75m² flat! This is up around 14% year-on-year. Families, expats, retirees, and teleworkers seeking year-round stays have pushed rents up. Landlord yields on long-term lets are around 5–6% gross, and above most major European cities.
The Valencian government has imposed tighter short-rental rules (licensing caps, area bans in “saturated” zones). Orihuela Costa falls into the Costa Blanca South area under these rules. However, enforcement remains relatively lax – most listings still lack visible tourist licence numbers. New housing laws also incentivize more long-term stock (e.g. limits on leaving homes empty). Landlords now must carefully track licensing or face fines.
Orihuela Costa Real Estate Forecast
Markets should stay positive but moderate. Analysts expect mid-single-digit price rises (3–5% yearly) through 2028. Supply constraints (limited new land, controlled planning) and continued foreign demand underpin values, even as the era of double-digit gains recedes.
Spain’s inflation is easing, and the European Central Bank will likely limit further rate hikes. Mortgage costs are expected to fall: Euribor is projected to ease to 2% by 2026, making loans more affordable. Buyers are favouring fixed-rate mortgages for stability. Local wages and employment remain stronger than the EU average, supporting domestic buyers too.
Spain’s primary Golden Visa (investment residency) was phased out end-2024. This removed a driver for some non-EU buyers, however the new digital-nomad visa attracts professionals globally, so the impact is partly offset by other visa routes.
Ongoing housing reforms will influence the market. Expect continued strict enforcement of rental licensing and possible freezes in the busiest zones. Measures to boost affordable housing (e.g. requirements for new projects) may slightly slow luxury development. None of these changes threaten resales significantly; they mostly shift investor strategies (more long-term leases, selective short-rental investment).
Overall demand is projected to remain broad-based. Northern Europeans (UK, Benelux, Nordics) and wealthier Eastern Europeans will still drive demand. Exotic buyers from the US, Canada or Middle East might enter, especially at higher price tiers. The Covid-era appetite for second homes and tourism property looks sustainable. If global growth slows or credit tightens sharply, sales volumes might flatten, but Valencia’s International appeal (sun, safety, relatively low costs) provides a buffer.
Neighbourhoods to Watch (Orihuela Costa)
La Zenia Beachfront (East of N-332)
Tight supply, high resale values, and continued demand from cash-rich Northern European retirees make this area resilient to downturns. The scarcity of plots and the prestige of sea views ensure steady appreciation. Limited availability means competition is fierce, supporting price stability even if the broader market slows.
Inland La Zenia (West of N-332):
More affordable entry points and lower maintenance attract younger international buyers and digital nomads. Many newer developments here include energy-efficient designs and good rental yields. It’s walkable to Zenia Boulevard and beaches, making it one of the most rentable mid-tier zones.
Villamartín Plaza Area
Year-round activity, golf tourism, and strong British and Scandinavian demand keep occupancy high. Short-term and long-term rentals perform well here, especially for renovated 2-bed apartments. Prices are around €3,000/m², offering easier entry and better ROI than frontline beach areas.
Las Filipinas
More residential and quieter, Las Filipinas has emerged as a lower-cost alternative for buyers priced out of central Villamartín. New villas with modern amenities are popping up on available plots. Investors focused on capital appreciation or longer-term rentals are showing growing interest.
Cabo Roig Strip
Consistent short-term rental demand due to nightlife and food scene. Apartments above commercial spaces yield 7–9% gross in high season. It’s a prime zone for those targeting holiday lets. Units that are well-managed or recently renovated here rarely sit empty in summer.
Aguamarina
Less dense and more tranquil, yet still walkable to the Cabo Roig marina and beach. High demand among mature buyers looking for lifestyle and resale value. New luxury renovations in this area are quietly setting price records. Limited development land makes it a capital appreciation candidate.
Mil Palmeras – Riomar Urbanization
Riomar offers affordable 2- and 3-bed properties with pools, which are rare this close to the sea. Entry-level prices under €2,400/m² combined with high holiday occupancy make it an investor’s sweet spot. Good for first-time buyers or seasonal rentals.
Playa Mil Palmeras Frontline
Very limited supply of seafront properties and strong local-Spanish demand keep prices buoyant. Properties here sell quickly. It’s less international than other zones, offering investors portfolio diversity. When frontline units list, they attract high-end buyers quickly, making it a long-term hold opportunity.
Infrastructure & Demand Drivers
Public services have lagged. Street cleaning and garbage removal are neglected. There are big concerns amongst the expat population with how Orihuela, the municipality that runs the Orihuela Costa area, allocates their budget. It seems most funds received from Orihuela Costa are diverted to inland Orihuela town, and services for the Orihuela Costa area are lacking. For example, Orihuela Costa waited years for a promised second health centre, and only a minor expansion of the existing Cabo Roig clinic was funded (a modest €150K). This gap amplifies demand for private healthcare. Notably, a new private hospital (with shopping centre) is now planned near Villamartín (opening in next few years). This is expected to improve the area’s appeal to retirees and families needing medical access.
Orihuela Costa is served by the N-332 and nearby AP-7 motorway which offer easy access to Alicante/Murcia airports. Recent upgrades to Alicante airport and the emerging Murcia AVE (high-speed) rail corridor will cut travel times to Northern Europe. Better flight links (e.g. new routes from Scandinavia, Poland) open the region to more potential foreign buyers. Local bus services and (soon) expanded tram connections are improving too.
The development of La Zenia Boulevard shopping and leisure complex has made Orihuela Costa a retail hub for southern Alicante. New amenities (gyms, eateries, supermarkets) continuously open. Beach and promenade works (e.g. Torrevieja’s stretch at Orihuela’s border) raise quality of life. Even mundane fixes (road repairs/potholes) are on city agendas to keep the area visitor-friendly. These incremental infrastructure projects help sustain property demand.
Orihuela Costa reflects the general patterns seen across the Costa Blanca (like rising prices, foreign buyer dominance, and high demand for modern homes), but it also has its own unique features and dynamics. Like Torrevieja, it relies on the expat community and tourism, but has more planned communities and newer stock. Compared to the neighbouring Mar Menor (Murcia), Orihuela Costa is somewhat more developed and slightly higher-priced, though all benefit from the Vega Baja region’s sunny climate and recovering tourism. With relatively flat topography and well-established resorts, Orihuela Costa remains one of the most stable and sought-after coastal markets in Spain
Are you looking to invest in Orihuela Costa? What areas interest you the most?
