Macro-Economic Context
In the mid-2010s, Spain was recovering from the earlier housing crash of 2008. GDP was growing steadily and unemployment was gradually falling, which helped restore confidence in real estate. Ultra-low interest rates in Europe (near 0% through 2019) made mortgages affordable and encouraged investment in real estate. Internationally, however, currency fluctuations and political events created uncertainty. The UK’s 2016 Brexit referendum caused a sharp devaluation of the British pound, briefly denting British purchasing power on the Costa Blanca. Despite this, overall foreign demand remained robust, aided by a stable Eurozone economy, new foreign buyer profiles, and Spain’s appeal as a safe haven for investment.
The late 2010s saw continued expansion. In 2019 tourism in Spain hit record highs, benefiting coastal markets like Torrevieja. However, the pandemic in 2020 caused Spain’s GDP to contract sharply. Coastal real estate markets paused as international travel restrictions kept buyers away. Nonetheless, prices in Spain dipped only slightly and rebounded by late 2020, thanks in part to fiscal support and the persistence of low interest rates. By 2021, economic recovery was underway. Spain’s GDP growth exceeded 5% in 2021–2022, and pent-up property demand began to release. Notably, the pandemic also accelerated remote work trends, prompting some buyers to seek homes in lifestyle destinations like Torrevieja (where one could work from a beachfront apartment). This new “digital nomad” trend even led Spain to introduce a Digital Nomad Visa in 2023.
High inflation in 2022 marked another major shift. The European Central Bank responded by hiking interest rates from mid-2022. Still, Torrevieja’s market remained buoyant. This was largely due to foreign buyers purchasing with cash or foreign financing. The war in Ukraine spurred an influx of Ukrainian, Polish, Romanian, and Czech residents to invest in Spain’s coast for financial and lifestyle stability. In Alicante province, 2024 house prices rose almost 8% year-on-year, outpacing the national average of 3.3%.
In summary, a strong economic recovery, renewed tourism, and international capital flows created a robust property market in Torrevieja, even as global uncertainties (Brexit, pandemic, war) re-shaped the profile of Costa Blanca buyers.
Regional Overview
Torrevieja contrasts sharply with Costa Blanca North towns like Moraira and Javea, where prices exceed €4,600/m² and the market caters to high-end Northern European buyers. In contrast, Torrevieja, with prices around €2,200/m² in mid-2025, is among the most affordable coastal towns in Alicante province despite its size and popularity.
To the south, Orihuela Costa targets British expats, driven by new-build golf urbanizations and amenities like La Zenia Boulevard. Its average prices by mid 2025 were €2,900/m², just above Torrevieja’s €2,400/m², reflecting strong parallel growth (7% in 2024). In contrast, Torrevieja has seen greater interest from Polish and Eastern European buyers.
North of Torrevieja, Guardamar del Segura offers a quieter, more natural setting, with prices now at €2,400–2,500/m², boosted by new beachfront developments and tighter supply.
Torrevieja’s value proposition lies in offering the full Mediterranean lifestyle at a lower cost than premium northern towns and smaller coastal resorts. Accessibility is a large benefit as Alicante-Elche Airport is only 40 minutes away, and the toll-free AP-7 ensures easy road connectivity. Although lacking rail, a proposed Orihuela–Torrevieja train link could boost access and pricing. High-quality healthcare (Torrevieja University Hospital) and international schools also reinforce its appeal to full-time foreign residents.
Ultimately, Torrevieja delivers a cosmopolitan, affordable sunbelt lifestyle, benefiting from similar climate and infrastructure advantages as pricier regions to the north.
Torrevieja Property Price Trends (2015–2025)
2015–2017: Recovery Phase. Post-2008 crisis, prices began recovering modestly.
By 2017, average prices reached approximately €1,250/m².
2018–2019: Steady Growth
2018 saw a significant annual increase of about 6%, with prices around €1,300/m².
By mid-2019, prices ranged between €1,350–€1,400/m².
2020: Pandemic Impact
COVID-19 led to a temporary market freeze.
Prices remained stable, ending the year in the mid-€1,300s/m².
2021–2022: Robust Rebound
2021 experienced a price increase of approximately 3–5%.
By early 2022, prices were around €1,400–€1,450/m².
2022 saw a further rise to €1,500–€1,600/m², driven by renewed foreign demand.
2023: Peak Activity
A record 7,144 homes were sold.
Appraised prices averaged €1,495/m²; asking prices approached €1,800–€1,900/m².
Polish buyers became the leading foreign purchasers.
2024: Continued Growth with Caution
Prices increased by 7.3%, reaching €1,600/m².
Asking prices rose to €2,400/m² by April 2025.
Foreign buyers accounted for almost 83% of transactions.
Affordability concerns emerged, with housing costs consuming 62% of household income.
2025: Sustained Momentum
Q1 data indicates a 9–10% annual price growth, with asking prices peaking at €2,400/m².
Experts anticipate a moderation in growth of 2–4% annually in the coming years.
Torrevieja Buyer Demographics and Trends
Torrevieja’s property market is among the most international in Spain. As of 2024, foreigners make up around 50% of residents and over 80% of property purchases – a proportion that ranks among the highest nationally.
British buyers once dominated Costa Blanca South, but in Torrevieja city, they’ve been overtaken in recent years. Scandinavians, especially Swedes, were prominent during the 2010s. From 2023–2024, Eastern Europeans, particularly Polish buyers, led foreign purchases (598 deals), followed by Swedes (288) and Ukrainians (281). Other active groups include Dutch, Germans, Belgians, Russians, Italians, and Latin Americans.
Brexit slightly reduced British volumes, though demand persisted among retirees. In contrast, EU nationals increased their share post-2018. Buyer groups often cluster: Scandinavians in Torreblanca and La Mata, British in Punta Prima and Orihuela Costa, Eastern Europeans in central zones.
The typical buyer is in their 50s to 70s, purchasing for retirement or seasonal living. Health benefits (salt lakes, dry air), excellent medical care, and affordability are the major draws. Since 2020, younger remote workers have begun relocating, aided by digital nomad visas. Most buyers are lifestyle-driven rather than speculative.
Three main motives dominate property purchases: (1) holiday homes, (2) retirement/relocation, and (3) rental investment. Seasonal living is common, and many northern Europeans spend winters in Torrevieja and summers in their home country. Rental investors are usually from Spain, and the UK, and target affordable apartments with strong yield potential.
Torrevieja’s buyer base is diverse, stable, and lifestyle-oriented. Its cosmopolitan mix (British, Polish, Ukrainian, Scandinavian, German, Dutch, Italian, Romanian, etc.) offers good resilience. If demand from one group softens, another often fills the gap. Agencies cater to this diversity through multilingual marketing and community integration.
Buyer Requirements and Evolving Preferences (2015–2025)
Over the past decade, buyer expectations in Torrevieja have shifted significantly. Where compact beach apartments once sufficed, today’s buyers demand more comfort, outdoor space, and year-round usability.
Post-pandemic preferences favour terraces, gardens, or solariums. Lockdowns drove demand for liveable outdoor areas and larger interiors. Townhouses, bungalows, and larger flats now outperform one-bed holiday apartments. Property sizes purchased have increased slightly.
Buyers prefer modern, move-in-ready homes. New builds and renovated resales with upgraded kitchens, AC, energy-efficient windows, and good insulation are in high demand, and especially since 2022’s energy cost spikes. Fast internet is essential for both remote workers and retirees.
Gated communities with pools are nearly essential, especially for families and rental investors. Extras like gyms or coworking lounges are rising in popularity. Suburban areas like Punta Prima and La Mata attract buyers with resort-style amenities. Secure parking is increasingly important as more buyers stay year-round.
Proximity to the beach is still valued, but many now accept inland areas like Aguas Nuevas or Los Balcones for more space, views, and newer homes. Retirees prioritize walkability, public transport, and closeness to Torrevieja Hospital. The short drive to Alicante Airport is a major selling point, and a proposed rail link to Orihuela could enhance connectivity further.
Buyers value access to nature (like the salt lakes and natural parks) for walks, views, and wellness. Golf remains a motivator, with nearby courses influencing demand in southern Torrevieja and Orihuela Costa.
Accessibility matters, and elevators, step-free access, and proximity to healthcare attract older or mobility-limited buyers.
Despite rising prices, Torrevieja still draws budget-conscious buyers. Demand remains strong for budget apartments and villas, especially when location, condition, and layout align. Many opt for resales with minor updates to stay within budget.
Conclusion: Torrevieja buyers are more interested in liveable, versatile homes for longer stays or permanent living, not just holiday apartments. This evolution is shaping both new developments and renovation trends across the city.
Torrevieja’s New Build vs. Resale Dynamics
Torrevieja’s property stock has shifted over the years. From 2015–2017, the resale market dominated due to unsold homes from the 2008 crisis. New builds were scarce and expensive, while resales offered bargains under €100k. As oversupply cleared, resale prices recovered before new build homes.
By 2018–2020, new development surged in areas like Aguas Nuevas, Los Balcones, and La Mata. These modern homes catered to Scandinavian and Northern European buyers seeking turnkey, energy-efficient options. New builds typically cost 25–50% more than older homes. In 2019, a new 2-bedroom apartment in Punta Prima averaged €250,000 vs. €170,000 for a similar resale.
From 2020 onward, prices diverged clearly. New builds reached €2,500–€3,000/m², and also appreciated faster (over 12% annually in late 2024), while older resales stayed around €1,700/m² in 2024. That said, resales in top locations could still compete on value.
Buyer profiles have differing requirements.
Scandinavians, Germans, Dutch lean toward new builds.
Spanish, Eastern Europeans, and budget-conscious buyers prefer resales.
British buyers are split between traditional and modern.
New build hotspots included Playa del Cura and Acequión, where rooftop-pool apartments rose from 2018–2022. Developers also created modern chalets in Sector 25 (Aguas Nuevas), often selling off-plan. Resale owners began renovating older homes to remain competitive.
Usage trends also differ.
New builds tend to attract seasonal use, high-end rentals, or second homes.
Resales attract more year-round use, long-term lets, or owner-occupied by locals.
Commercial upgrades also boosted property values. Promenade refurbishments, private hospitals (since 2021), and new shopping proposals near the marina raised demand in older areas too.
The dual offering of both new and resale homes ensures buyers of all profiles and budgets find suitable options in a maturing, diverse market.
Torrevieja Rental Market Overview (2015–2025)
Torrevieja has a strong rental market, spanning both short-term holiday lets and long-term rentals, driven by tourism, expat growth, and affordability. Gross rental yields remain attractive (5–6%), with asking rents averaging €11.4/m² in 2025 which translates to around €900/month for an 80 m² apartment.
Platforms like Airbnb and Booking.com list thousands of properties, peaking in summer but active year-round due to a strong demand for out-of-season lets by Northern Europeans and remote workers. Weekly summer rates can reach €500–€700 near the beach. Many investors who bought in the 2010s earned solid returns, often covering purchase costs within 8–10 years. Holiday rental regulation requires registration and minimum standards. No bans yet, but new controls may emerge if pressure on housing rises.
Long-term rentals demand (locals, expats, and digital nomads) has surged post-2021. Rents rose 14% YOY by April 2025, from €9.9 to €11.4/m². Brexit and price inflation pushed more foreigners to rent year-round. The 2023 national housing law introduced possible rent caps for “stressed areas,” but Torrevieja hasn’t been affected yet.
Even with property prices climbing, yields remain stable. A €150k flat could generate €8–9k/year in long-term rent or €12k+ via holiday lets. Rental management services are widespread, helping absentee owners maximize income.
Neighbourhoods with the highest rents: Nueva Torrevieja (€11.8/m²), Aguas Nuevas, La Mata (beach proximity, modern homes).
Lower rents: Acequión-Los Naúfragos, and Centro (around €11/m²), where older housing dominates.
The sector rebounded by 2023. Growing niches like remote workers and retired winter migrants support off-season rentals. Torrevieja’s rental scene is lucrative, dynamic, and offers solid yields, especially for adaptable owners. Rising rents are both an opportunity and a challenge, and could prompt closer policy scrutiny as the town balances tourism with housing access. The market is also sensitive to international travel and economic shifts.
Neighborhoods to Watch in Torrevieja (2015–2025)
At the north end, La Mata stands out for its wide sandy beach and natural park. It remains in high demand due to limited land and a relaxed, self-sufficient vibe. New luxury builds, and consistent interest, have pushed prices to around €400/m² more than the city average. A top-tier option for nature-lovers and beach-seekers, this is Torrevieja’s most premium address.
The Aguas Nuevas / Sector 25 / Torreblanca area has grown rapidly with modern townhouses, apartments, and villas. Wide streets, sports facilities, and retail attract both locals and foreigners. Prices around €2,400–€2,600/m² reflect steady demand. It’s ideal for families, with further upside potential tied to future infrastructure like a train stop or transport hub.
Punta Prima is a luxury hotspot thanks to seafront developments like Sea Senses. Inland Los Balcones offers large villas with pink salt lake views, and Los Altos offers newer homes at lower prices. The area averages €3,000/m², the highest in Torrevieja. It benefits from proximity to Orihuela Costa, Zenia Boulevard, and the AP-7 motorway.
Despite being walkable and vibrant, Torrevieja centre remains undervalued at €2,000/m². Many 1970s–90s buildings lack modern features, but urban renewal and proximity to beaches and cafés make this area ripe for growth. Signs of interest are emerging among retirees and digital nomads.
La Siesta / El Chaparral / San Luis are quieter inland zones near the salt lakes and offer detached villas and bungalows, popular among retirees. With prices around €2,500/m², they present good value for buyers seeking space. Infrastructure upgrades and remote working trends have improved their appeal.
Nearby areas like Villamartín, Guardamar, and Playa Flamenca impact Torrevieja’s market. If neighbouring prices rise, demand often shifts into Torrevieja. Shared amenities and tourism flow between these areas support overall demand, especially in La Mata and Punta Prima.
A Recap of Notable Trends by Year (2015–2025)
2015: Recovery Begins
Prices bottom out and rise slightly (+1%). Foreign buyers (especially British and Swedish) return. The Spanish economy improves, tourism hits records, and rental demand grows.
2016: Brexit. Construction Restarts.
Brexit causes uncertainty for UK buyers, but EU demand remains strong. Developers restart projects. Prices rise 4–5%. Golden visa interest grows, with Russian and Chinese buyers entering.
2017: Scandinavian Surge
Swedes lead purchases in Torrevieja. Prices rise 3%. New builds target Nordic and Belgian buyers. Local upgrades (like Playa del Cura promenade) boost buyer confidence.
2018: Mini Boom
Sales exceed 5,000 units. Prices jump 6%. Airbnb and holiday rentals expand. Foreign buyers dominate, especially from Northern Europe. British demand rebounds slightly.
2019: Peak Before the Pandemic
Prices rise 5%. High demand tightens quality inventory. Swedes rival Brits in volume. Late-year Brexit deadline causes a UK buying rush. Market activity at post-crisis peak.
2020: COVID Shock and Shift
Sales plunge during lockdown, but prices hold as sellers wait. Domestic buyers drive a summer rebound. Villas with space become more desirable. AP-7 toll is removed, improving access.
2021: Rebound and Remote Work
Prices climb 3–4%. International buyers return. Remote work drives full-time relocations. Brits still buy, adapting to new visa rules. Polish buyer numbers increase significantly.
2022: Bull Market
Prices soar 8–10%. Ukrainian families and early-year Russian buyers arrive. Americans enter market due to weak euro. New construction surges, especially in La Mata and Los Altos.
2023: Record Year
7,144 homes sold. Prices rise 5–7%. Poles become top foreign buyers, followed by Romanians and Ukrainians. Interest rate hikes affect Spanish buyers, but cash-rich foreigners dominate.
2024: Growth with Caution
Prices up 7% (avg. €1,700/m²). 83% of buyers are foreigners. Affordability issues spark policy debate. Rental prices rise 14%, impacting local workers. Growth slows slightly.
2025: Slower Growth Expected
Q1 prices up 9–10%, but forecasts point to a cooldown. New policy proposals could affect non-EU buyers. Foreign demand stays strong, supported by tourism and lifestyle appeal.
Torrevieja Real Estate Forecast for 2025–2028
Demand Outlook. Torrevieja continues to attract Northern European retirees and lifestyle buyers, particularly from the UK, Germany, and Scandinavia. Eastern European demand, notably from Poland and Romania, is also on the rise.
British Buyers. Despite post-Brexit visa limitations, British interest remains significant. Factors such as potential bilateral agreements and currency fluctuations could influence future demand.
Emerging Segments. Digital nomads and remote workers are increasingly considering Torrevieja, spurred by Spain’s remote work visa. Additionally, North American and Asian investors are showing growing interest due to favourable exchange rates and the region’s affordability.
Price Trends. After significant post-pandemic increases, property prices are expected to grow at a more sustainable rate of 2–4% annually through 2028.
Market Dynamics. Higher interest rates and affordability concerns may pose friction for price acceleration. However, limited supply and ongoing demand are likely to prevent price declines.
Economic Factors. Potential downturns in key buyer countries or unfavourable currency shifts could impact demand.
Regulatory Changes. Proposed policies, such as additional taxes on non-resident foreign buyers or restrictions on tourist rentals, could influence investment decisions.
Supply & Investment Opportunities. Developers are cautiously expanding, mindful of past overbuilding issues. The resale market may see increased activity as long-term owners capitalize on appreciated values.
Investment Potential. Opportunities exist in renovating older properties in key areas for higher rental yields and capital appreciation. Torrevieja’s relative affordability compared to other Mediterranean locales enhances its investment appeal.
Quality of Life. Post-COVID preferences for health, space, and climate favour Torrevieja. The region’s reputation for wellness and its salt lake microclimate are attractive to health-conscious buyers.
Infrastructure Developments. Proposed transport enhancements, including a potential railway link to Orihuela’s AVE station, could improve accessibility and boost property values.
From 2025 to 2028, Torrevieja’s property market is poised for steady growth, driven by diverse international demand and lifestyle appeal. While challenges exist, including economic uncertainties and potential regulatory changes, the market’s fundamentals suggest a resilient and attractive environment for both investors and lifestyle buyers.
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