Market Update · 6 min read
Costa Blanca Property Market Update — Spring 2026
1 April 2026 · Hansson & Hertzell
Price trends, demand shifts, and what buyers and sellers should expect in the Costa Blanca real estate market this spring.
The Costa Blanca property market opened 2026 in its strongest position in over a decade. Transaction volumes, price growth, and buyer demand all tracked positive through the second half of 2025, and early 2026 indicators show no sign of cooling.
This report covers the key trends, price data by area, buyer profile shifts, and what to expect through the rest of 2026 — based on current market data and our own transaction activity at Hansson & Hertzell.
Key Market Indicators
Transaction volume: According to the Colegio de Registradores (Spain's Property Registry), residential property transactions in Alicante province increased by 12% year-on-year in 2025, outperforming the national average of 8%. The Costa Blanca consistently ranks as one of Spain's top three coastal markets by transaction volume.
Price growth: Average property prices on the Costa Blanca South rose 7.2% in 2025, according to Idealista data. New-build properties outperformed resale, with 11–15% appreciation in prime areas driven by construction cost inflation and sustained demand.
Alicante Airport traffic: 18.38 million passengers in 2024 — up 16.8% from 2023. This is the key leading indicator for the property market. More visitor arrivals means more buyers discovering the market. Alicante's catchment area now extends to most of Northern Europe with under 3 hours' flight time.
Days on market: Quality properties (well-presented, correctly priced) are selling in 30–60 days in the current market. Overpriced or poorly presented stock sits for 6+ months. The market rewards accurate pricing more than ever.
Price Overview by Area (Spring 2026)
Costa Blanca South
Torrevieja The most accessible quality beach market on the coast. Strong rental demand year-round from both tourists and long-term residents.
- Studio/1-bed apartments: €75,000–€160,000
- 2-bed apartments: €110,000–€220,000
- New-build 2-bed with pool: €165,000–€280,000
Price growth 2025: +6.8% (resale), +12% (new-build)
[Orihuela Costa](/en/areas/orihuela-costa) (La Zenia, Cabo Roig, Playa Flamenca, Villamartin) The premium southern market. Blue Flag beaches, championship golf, and sophisticated international lifestyle.
- Apartments: €145,000–€850,000 depending on size and location
- Townhouses: €180,000–€480,000
- Villas: €350,000–€2,500,000
Price growth 2025: +8.5% (Banco de España data for premium coastal segment)
[Ciudad Quesada](/en/areas/ciudad-quesada) / Rojales The green inland market with La Marquesa Golf at its heart. Strong Scandinavian and British community.
- Apartments: €110,000–€280,000
- Townhouses: €160,000–€320,000
- Villas: €220,000–€580,000
Price growth 2025: +7.1%
Guardamar del Segura Undervalued coastal town with 11km of natural sand beach and pine forest. Growing new-build pipeline.
- Apartments: €130,000–€320,000
- Townhouses: €175,000–€350,000
Costa Blanca North
Jávea (Xàbia) Premium northern market. Strict planning controls limit supply, supporting long-term values.
- Apartments: €180,000–€650,000
- Villas: €380,000–€3,500,000
Price growth 2025: +9.2%
Moraira / Calpe / Altea Luxury coastal towns with strong Dutch, German, and British buyer base.
- Apartments: €200,000–€750,000
- Villas: €450,000–€4,000,000
Costa Cálida
[Los Alcázares](/en/areas/los-alcazares) / San Javier / Lo Pagán Mar Menor lagoon area — the fastest-growing sub-market. New motorway links to Murcia Airport driving accessibility.
- Apartments: €90,000–€220,000
- New-build with pool: €130,000–€280,000
Price growth 2025: +10.2% (highest on the coast from lowest base)
Who Is Buying in 2026?
The buyer profile has shifted meaningfully over the last three years.
British buyers remain the largest single foreign buyer group despite Brexit bureaucracy. The non-lucrative visa route has replaced the Golden Visa as the primary residency pathway for British retirees. Post-Brexit, British buyers are now treating Costa Blanca purchases more like permanent relocation decisions rather than holiday home purchases — driving demand for larger properties with better facilities.
Scandinavian buyers (Sweden, Norway, Denmark, Finland) have been the fastest-growing buyer group since 2022. High domestic housing costs, strong currencies, and long Nordic winters are driving a wave of younger Scandinavian buyers (35–55 age range) that was historically dominated by retirees. Swedish buyers in particular are active across all price points.
German and Dutch buyers represent a consistent, high-value buyer segment. Both nationalities tend toward higher price points and are particularly active in the Costa Blanca North (Jávea, Moraira, Altea).
Eastern European buyers — primarily Polish, Czech, and Romanian — are a growing segment, particularly in the more affordable southern markets (Torrevieja, Guardamar, Torre de la Horadada).
Spanish domestic buyers have increased their share of Costa Blanca purchases as urban Spaniards — particularly from Madrid and Valencia — seek second homes within driving distance.
New-Build Pipeline 2026–2028
The Costa Blanca new-build market has a strong forward pipeline across all price segments.
Key active developments include:
- Multiple beachfront apartment complexes in Torre de la Horadada and Pilar de la Horadada (50–80 units each, €160,000–€320,000)
- Boutique villa projects in the Orihuela Costa hinterland (8–15 units, €380,000–€750,000)
- Large-scale urbanisation projects in Gran Alacant and Santa Pola (200–400 units each, €190,000–€380,000)
- Golf-front villas in Villamartin and Campoamor (€280,000–€600,000)
Delivery timelines for current off-plan reservations: Q4 2026 to Q3 2028. Buyers reserving now are buying at today's prices with 12–24 months for market appreciation before completion.
Rental Market Conditions
Holiday rental demand on the Costa Blanca continues to strengthen, driven by Alicante Airport's growing route network and the normalisation of short-term rental platforms among European holiday-makers.
Key metrics for investment buyers:
- Average summer occupancy (June–August): 85–95% for well-managed properties
- Peak weekly rates (2-bed apartment): €600–€1,200 in Torrevieja; €900–€1,800 in Orihuela Costa; €1,200–€2,500 in Jávea
- Annual gross yield (Torrevieja 2-bed): 6–9%
- Annual gross yield in our own calculations, before costs and with no occupancy guarantee (Orihuela Costa 2-bed): 5–7%
Note: A valid tourist rental licence (VUT — Vivienda de Uso Turístico) is required for short-term holiday lets in the Valencia Community. Licence availability varies by municipality — verify before purchasing with rental intent.
Interest Rates and Mortgage Market
The European Central Bank cut rates four times in 2025, bringing the deposit rate down to 2.25% by early 2026; it has since been cut again and now stands at 2.00%, with Euribor tracking accordingly. Spanish fixed mortgage rates have tracked down to 3.5–4.2% for 20-year terms, making this the most favourable borrowing environment since 2022.
For investment buyers using leverage, the combination of improved yield (6–9% gross) against a mortgage rate of 3.5–4.2% creates genuine positive carry potential — assuming professional management and good occupancy.
Outlook: What to Expect Through Q4 2026
Prices: We expect 6–9% appreciation in 2026 for quality stock. The strongest growth will be in the new-build segment and in areas where supply constraints are tightest (Jávea, Moraira, Orihuela Costa beachfront).
Volume: Transaction volumes should remain strong through mid-2026 as buyers from Northern Europe continue to act on long-held purchase intentions. Any Euribor reduction would further stimulate buyer activity.
Supply: New-build completions will add stock from Q3 2026 onward, providing buying opportunities at the upper end of the market. Resale supply remains tight in prime locations.
Risks: Potential legislative changes affecting short-term rental licences could impact yields. The proposed non-EU buyer surcharge, if enacted, could reduce demand from non-EU nationals (currently not law — see our separate guide on this).
Frequently Asked Questions
Is it a good time to buy on the Costa Blanca in 2026? Based on current data: yes. The market is in a growth phase, borrowing costs have fallen from 2023 peaks, and the supply pipeline is insufficient to meet demand in prime areas. Waiting is likely to mean higher prices.
Have prices peaked? Data suggests no. The Costa Blanca remains significantly undervalued compared to comparable Mediterranean markets in France and Italy. The gap between Costa Blanca and French Riviera prices continues to attract buyers.
What is the minimum budget for a rental investment property? A functional 1-bed apartment with pool access in Torrevieja starts around €100,000–€130,000. Allow around 12% buying costs — transfer tax in the Comunitat Valenciana fell from 10% to 9% on 1 June 2026 — so a total outlay of €112,000–€146,000 for a property generating €600–€900/month in peak season.
Talk to Our Market Specialists
Hansson & Hertzell has been active in this market since 2007. We track prices, developments, and buyer trends across the full Costa Blanca. Contact our team for a current market briefing tailored to your target area and budget.
Spring 2026 Market Snapshot by Zone
Torrevieja and Orihuela Costa The south coast continues to dominate transaction volumes. Torrevieja municipality recorded over 2,800 property transactions in 2025, making it one of the highest-volume markets in the Valencian Community outside Valencia city. Demand from Belgian, UK, and Scandinavian buyers remains particularly strong, with UK buyers recovering market share following the post-Brexit cooling period of 2021–2022. Average resale apartment prices have reached €1,800–2,200/m² in beachfront locations.
Alicante City Urban demand has accelerated sharply as international buyers — particularly from Germany, the Netherlands, and Northern Europe — seek a lifestyle base in a functioning Spanish city rather than a resort. The Santa Cruz, San Blas, and Ensanche districts have seen the strongest price growth, up 15–20% in two years. New-build supply is limited by planning constraints in the historic centre.
Javea and Moraira (North) The luxury segment is performing at record levels. Properties above €1 million in Javea's Portichol and Adsubia zones have seen bidding competition for the first time since 2008. The shortage of quality resale stock has pushed buyers toward off-plan, where reputable developers now have waiting lists for premium plots.
Denia Denia is emerging as a notable market shift story. Previously overlooked in favour of Javea, it has attracted attention from Valencia-based buyers seeking a coastal base, plus French buyers for whom the proximity to France via motorway is relevant. Marina Alta district asking prices have risen 12% year-on-year.
What This Means for Buyers in Spring 2026
The market rewards preparation. The buyers securing the best properties are those who have their NIE, Spanish bank account, and either proof of funds or mortgage pre-approval in place before they start viewing. Properties in the €200,000–€350,000 sweet spot — two and three-bedroom apartments in established coastal communities — are selling quickly, often within days of listing.
For buyers in the €500,000+ segment, there is slightly more time to consider options, but quality-of-life properties with sea views, private pools, and proximity to services are still competitive.
The advice for spring 2026 is to be more decisive than you might have been in 2019–2020. The market has fundamentally changed and the "wait and see" approach now carries real opportunity cost.
How to Prepare: A Spring 2026 Buyer Checklist
- [ ] Apply for your NIE (allow 2–8 weeks depending on method)
- [ ] Open a Spanish bank account (BBVA, Sabadell, or CaixaBank all cater well to non-residents)
- [ ] If financing: get a mortgage agreement in principle from a Spanish bank or broker
- [ ] If cash: prepare a bank statement showing funds within the last 3 months
- [ ] Instruct an independent Spanish lawyer before signing anything
- [ ] Shortlist 2–3 areas to focus your search — trying to cover the entire costa leads to decision paralysis
- [ ] Book a viewing trip for 3–5 days — enough time to see 8–12 properties across your shortlisted zones
What the H1 2026 Data Has Since Added to This Picture
This report was written in the spring. The half-year figures published since then confirm part of it and complicate the rest, so it is worth setting the two side by side rather than quietly restating the spring view.
The complication is volume. Notary data for the first half of 2026 shows national home sales down roughly 8% year-on-year — about 7% lower in the first quarter and about 9% lower in the second. That is a national figure, and it sits awkwardly next to the transaction growth described above. Prices, meanwhile, went the other way: the Tinsa IMIE index recorded 15.2% nominal growth in the second quarter of 2026, and BBVA's published forecast for the full year is around 12%.
| Indicator | Latest reading | Source |
|---|---|---|
| National home sales, Q1 2026 | -7% year-on-year | Notary statistics |
| National home sales, Q2 2026 | -9% year-on-year | Notary statistics |
| National home sales, H1 2026 | approximately -8% year-on-year | Notary statistics |
| Nominal price growth, Q2 2026 | +15.2% | Tinsa IMIE |
| Full-year 2026 price forecast | approximately +12% | BBVA |
| ECB deposit rate | 2.00% | European Central Bank |
Fewer sales at higher prices is not the pattern of a market running out of steam. It is the pattern of a market where the people still transacting are, on average, better funded than the people who have stepped back. The national sales decline is driven mainly by domestic Spanish buyers, who are the most exposed to mortgage affordability. The foreign-buyer share of Spanish purchases is meanwhile at a record, and that share is concentrated in exactly the coastal markets this report covers.
For a Costa Blanca buyer, the practical reading is that competition has not eased. It has changed shape. There are fewer casual bidders and roughly the same number of committed international ones chasing the same constrained coastal stock.
Purchase Costs After the June 2026 Transfer Tax Cut
One concrete change since the spring is worth flagging because it alters every resale calculation on this page. The Comunitat Valenciana cut its transfer tax (ITP) from 10% to 9% with effect from 1 June 2026. On a €250,000 resale purchase that is €2,500 less at completion.
| Headline purchase tax | Resale property | New build |
|---|---|---|
| Transfer tax (ITP), Comunitat Valenciana | 9% of the declared price, from 1 June 2026 | Not applicable |
| VAT (IVA) | Not applicable | 10% of the price |
| Stamp duty (AJD) | Not applicable | 1.5% of the price |
| Notary, land registry and independent legal fees | Quoted case by case | Quoted case by case |
Two points buyers commonly get wrong. First, the cut applies to completions from 1 June 2026 onward, not to the date you reserved. Second, new build has not become cheaper to buy: IVA at 10% plus AJD at 1.5% still totals 11.5% in headline tax, which is now above the resale figure rather than roughly level with it. That is a small but real shift in the relative economics of resale versus off-plan, and it runs in resale's favour.
Reading Asking Prices Against Sale Prices
One caution applies to every price range quoted in this report and to every portal listing you will look at. Asking prices on Spanish portals typically run 5–15% above the prices that are actually recorded at the notary. The ranges above are drawn from asking-price data and from our own transaction activity, and the two do not always agree.
That gap is why a property advertised at €265,000 can complete at €240,000 without anybody feeling they have won or lost. It is also why buyers who benchmark only against portal listings consistently overestimate what a given area costs. If you are budgeting seriously, work from completed sale evidence for the specific complex or street, not from the headline number on the listing.
The gap narrows in the tightest segments. In the €200,000–€350,000 coastal band, where stock is thin and demand is heaviest, well-presented properties are completing close to asking. It widens where a property has been mispriced at launch and has been sitting for months — which, on this coast in 2026, is usually a signal about the property rather than about the market.
Related guides
If you are working through a purchase, these cover the neighbouring ground in more detail:
- Dutch Buyers Overtake Germans in Spain: What the Foreign Buyer Reshuffle Means for Nordic Purchasers
- Costa Blanca Property Prices Surged 18.3% in Q1 2026 — What Resale Buyers Need to Know
- Costa Blanca Property Market Outlook 2026: What Buyers and Investors Should Expect
- Spain's Government Housing Plan 2026: Should Costa Blanca Buyers Be Worried?
Browse our current listings on the Costa Blanca or get in touch.
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