TOP 9 Areas to Buy or Invest in Property on the Costa Blanca

The Costa Blanca offers a wealth of real estate opportunities. There are more than 60 thousand homes for sale from Orihuela Costa in the Southern Costa Blanca to Denia in the North.
However, not all of these homes represent a good investment, in fact less than a third possess more than a few qualities of a good real estate investment.

But before we continue, I believe it’s important to first define what constitutes a good real estate investment on the Costa Blanca.

Location: Sea views and proximity to the coast are highly prized, however so are proximity to transportation, good schools, professional services, shopping, and entertainment.
Properties in well-serviced central neighbourhoods are highly desirable and almost always appreciate in value.

Good rental income potential: If you are looking for an investment property, or simply looking to achieve the highest possible resale value in years to come, then it’s important to design the property around the demographic that represents the most numerous and affluent tenants and buyers.
There are key features and lifestyle conveniences to include in your design. More about this further.

Appreciation potential: Without a doubt, real estate in the most desirable areas have performed better throughout the years. It’s important to consider not only what type of return on investment you could expect in the future, but also the average length of time the property could spend on the market.

Note: The condition of the property is not always an important consideration. There is excellent potential for renovation projects in good locations. We will discuss this in detail a bit further on.

To sum up, a good residential real estate investment on the Costa Blanca is one that can provide a steady stream of rental income through all economic cycles, has excellent potential for resale value appreciation, and is located in a desirable area with access to amenities.

The strongest property markets are represented by the areas where we see the most buyer demand.
Beginning from South to North:

1) The residential areas of the Orihuela Costa nearest to Torrevieja city. These include Punta Prima, Playa Flamenca, Cabo Roig, La Zenia, and Campoamor. The closer to the city the better your holiday rental occupancy outside of the main seasons. Confidence factor: 8/10

2) The golf areas of Vilamartin, Las Colinas, and Las Ramblas. The demand for golf and cycling holidays in the Southern Costa Blanca increases each year. Properties in and around the golf developments have seen a strong appreciation in value, and also a strong demand for both long term and holiday rentals. Confidence factor: 7.5/10

3) Torrevieja port area. There is lack of luxury holiday accommodation offers. Confidence factor: 7/10

4) Alicante Historic Centre. The port, promenade, and beachfront have all seen a large financial injection in the last few years. Many historic buildings in the centre are being restored. Alicante is a vibrant city on the Mediterranean with an excellent climate and experiencing robust economic investment. Apartments to renovate represent an excellent financial investment with year round occupancy. Confidence factor: 8.5/10

5) Benidorm. A large portion of the Levante area east of Benidorm Centre has several luxury residential developments with planning approval.
The area marked for development measures more than 550.000 sqm and is situated between Carretera Albir, Carrer Derramador, Avenida de la Comunitat Valenciana, and Cami de l’Armanello. This €570 million investment will see more than 2300 new homes, 20 hotels, and a new public park. There is also planning for another 8 schools and education centres throughout Benidorm. The property market of the surrounding residential areas should see a positive value effect. In the Poniente area several luxury apartment blocks, including Delfín Tower 2, have received planning approval. Apartments to renovate in the Levante, Rincon de Loix, and Poniente areas of Benidorm represent an excellent financial investment. Confidence factor: 8/10

6) The towns of Albir, La Nucia, Alfaz, and Altea are all sought after and extremely desirable locations. There is a big demand for holiday villas and apartments. The Altea and Albir bay area has a strong occupancy throughout the year, this is due in part to many of the 1st tier professional cycling teams using the accommodations as a base for their winter training. The location is also very popular for winter golf and cycling holidays. Confidence factor: 8/10

7) Calpe has long since been a popular area for the people from central and northern Europe. It is an important year round cycling base for both professional and amateur cyclists. It has the advantage of being a more entry level market where apartment prices are lower than in many other coastal areas of the Northern Costa Blanca. Confidence factor: 7/10

8) The property markets in Moraira and Javea are extremely robust. Property prices in Madrid, Barcelona, San Sebastian, some parts of the Costa del Sol (Marbella and Estepona), Mallorca, Ibiza, and the Northern tip of the Costa Blanca (Moraira, Javea and Denia) were among the first to show signs of recovery after the financial crisis of 2008. The areas of Moraira and Javea offer some of the most stunning geography, coastline, and greenery in all of Spain with a diverse range of professional services and amenities to compete. The average holiday budget, and the average property purchase price by foreigners is substantially higher than in other areas of the Costa Blanca. The real estate markets area very active with a strong demand for freestanding homes in the areas surrounding Moraira, while Javea sees a strong demand for apartments and freestanding homes. Confidence factor: 8.5/10

9) Denia, and especially the areas near the port and the port side of the historical centre. Through private and government funds Denia’s infrastructure has received a lot of investment, and especially their port area and historical centre. The newly expanded and renovated marina and sports port is experiencing a high demand for berths from luxury yacht owners. These are both new clients and also boat owners who can’t find berths in Mallorca and Ibiza. The demand will continue to increase for luxury accommodation in the port areas, the port side of the historical centre, and the residential areas of Las Rotas and Montgo. Confidence factor: 8.5/10

From South to North the top 10 areas that experience the most real estate transactions throughout the year are:
1) Orihuela Costa.
2) Torrevieja City.
3) Alicante city, and especially the areas nearer the port and beaches.
4) Playa San Juan, an affluent residential area of Alicante city.
5) Benidorm and Finestrat.
6) Albir, Alfaz, La Nucia, and Altea.
7) Calpe.
8) Moraira.
9) Javea.
10) Denia.

Due to a demand much greater than supply the long-term rental prices in the Northern Costa Blanca have surged in recent years. Rental real estate in Northern Costa Blanca (that caters to the tastes and lifestyle of foreigners) has shown an excellent yearly income in relation to purchase price.

1) In the historical centres of Javea, Altea, Denia, and Alicante old town (and to a lesser degree Calpe) there is a lot of interest in the renovation of old village homes and townhouses. Many of these beautiful properties offer unique historical architecture with high ceilings, thick stone walls (excellent soundproofing), and large living spaces. These are usually in high demand for both short-term and long-term rental due to their very central location with easy access to amenities and services.

2) As with the areas around Marbella in the Costa del Sol there is a strong demand (by foreign buyers) for villas to renovate in the areas of Denia, Javea, and Moraira. The best rentability is achieved when these villas are modernized to offer a luxury lifestyle. Sea views and nature views are in high demand, as well as sustainable living, ample parking, swimming pools, low-maintenance gardens, and outdoor entertaining spaces. Modern, luxury, and Ibiza styles are in the most demand. This strategy of investing in refurbishment projects is very appealing to investors as obtaining a license to renovate is a lot quicker than for a new build.

3) Apartments in Denia, Calpe, especially Moraira (where demand exceeds supply), Javea, Altea, Benidorm, Alicante, Santa Pola, and Torrevieja, are all in top demand.

4) Attached homes (duplexes, simplexes, semi-attached, etc.) in the areas of Playa San Juan, Cabo de las Huertas, Alicante City (Santa Cruz), Orihuela Costa, Moraira, Javea, and the Altea bay.

New build homes tend to be offered at the upper end of their market value, however, there are still some good value projects being offered in and around the golf developments of the Orihuela Costa, San Miguel de Salinas, Quesada and Rojales, Guardamar del Segura, Gran Alacant (between Santa Pola and Alicante), Playa san Juan, Altea, Benissa (near Moraira), Gata de Gorgos (near Javea), and Les Marines (near Denia).

Is the holiday home only for yourself or your family, or would you like to rent it out as holiday accommodation to earn and extra income?
You’ll want to consider areas of the Costa Blanca that also attract tourism and business outside of summer. This will give you a potentially longer rental period.
The areas with the highest potential occupancy and longest holiday season include the popular cycling, golf, and sports destinations of Altea, Alfaz del Pi, Albir, Benidorm, Calpe, Moraira, Javea, and Denia. These towns offer excellent facilities for winter training camps for professionals from football, athletics, triathlon, tennis, and others.