Market Update · 8 min read

Costa Blanca Property Prices Surged 18.3% in Q1 2026 — What Resale Buyers Need to Know

9 June 2026 · Hansson & Hertzell

Property prices on the Costa Blanca jumped 18.3% year-on-year in Q1 2026, with Benidorm, Torrevieja, and Orihuela Costa leading the surge. Here is what the data means for resale buyers in 2026.

Property prices on the Costa Blanca rose 18.3% year-on-year in the first quarter of 2026 — the strongest quarterly growth figure recorded in years. The data shows that the three fastest-growing markets were Benidorm, Torrevieja, and Orihuela Costa, all of which have seen demand from Northern European buyers accelerate sharply.

For buyers considering a resale property on the Costa Blanca, this figure carries a clear message: the window for 2023-era pricing has closed. Buyers who have been watching from the sidelines now face meaningfully higher entry costs than twelve months ago — and the structural drivers suggest that gap will continue to widen.

This article examines what drove the surge, breaks down the numbers by area, explains what it means for resale versus new-build buyers, and gives our honest assessment of where prices are heading through the rest of 2026.

What Drove the 18.3% Q1 Surge?

Several converging factors produced the strongest quarterly growth in years:

Resale supply tightening. Stock on the Costa Blanca has been declining since mid-2024 as owners who bought at lower price points are reluctant to sell into a rising market. Fewer listings mean more competition for each property.

Demand surge from Northern Europe. Alicante Airport passenger numbers continue to track strongly, with Scandinavian routes growing faster than average. Swedish, Norwegian, and Danish buyers increased their market share through 2025 and carried that momentum into Q1 2026.

ECB rate cuts. The European Central Bank cut rates four times through 2025, bringing the deposit rate to 2.25% by early 2026. Spanish fixed mortgage rates fell to 3.5–4.2%, unlocking a wave of leveraged buyers who had sat out the high-rate period of 2023.

Deadline pressure from proposed legislation. Despite the proposed 100% property tax on non-EU buyers — which remains unenacted and stalled in Congress — the uncertainty prompted many buyers to act in Q1 rather than wait.

Price Growth by Area (Q2 2026 Ranges)

Not every market saw the same trajectory. Here is the breakdown for the key zones we operate in:

Benidorm and Marina Baixa

Benidorm emerged as the fastest-growing individual market on the coast in Q1 2026, driven by investment in tourism infrastructure and a new wave of younger European buyers. The surrounding Marina Baixa municipalities — Altea, Alfàs del Pi, La Nucía — all recorded above-average growth as buyers priced out of central Benidorm moved slightly inland.

Current resale price ranges:

• 1-bed apartments near the beach: €160,000–€280,000
• 2-bed apartments: €195,000–€380,000
• Villas with sea views: €450,000–€1,500,000

Torrevieja

Torrevieja remains the volume market of the Costa Blanca — the highest transaction count, the greatest buyer diversity, and the broadest price range. The Q1 surge here was driven by a shortage of quality 2-bed apartments in the €150,000–€250,000 band, where demand substantially exceeds supply.

Current resale price ranges:

• 1-bed apartments: €90,000–€175,000
• 2-bed apartments: €130,000–€280,000
• Townhouses with garden: €175,000–€320,000
• Detached villas: €280,000–€650,000

Orihuela Costa (La Zenia, Cabo Roig, Campoamor, Villamartin)

Orihuela Costa recorded the most consistent premium price growth. This is the market where quality resale properties have the largest and most active buyer pool, with Scandinavian and British buyers particularly prominent. Properties with direct sea views or private pools have been selling above initial asking price in some cases.

Current resale price ranges:

• 2-bed apartments: €155,000–€350,000
• 3-bed townhouses with pool: €220,000–€480,000
• Detached villas: €350,000–€2,200,000

Costa Blanca North (Jávea, Moraira, Dénia, Calpe)

The northern coast saw growth more in line with national figures — 9–12% — reflecting the higher starting price base. This is a market where serious long-term buyers see better capital preservation value over a 10–15 year horizon, even if the growth numbers look lower.

Current resale price ranges:

• Apartments in Dénia or Calpe: €190,000–€550,000
• Villas in Jávea or Moraira: €450,000–€4,500,000

Costa Cálida (Mar Menor)

Many Hansson & Hertzell buyers consider the Mar Menor area — Los Alcázares, San Pedro del Pinatar, Torre Pacheco — as part of the same extended market. It continues to offer the strongest value proposition relative to location: waterfront or near-waterfront properties at significantly lower prices than equivalent Costa Blanca locations. Price growth was 10–14% over the past year from a lower base, which means it still represents a genuine value window.

Resale vs New-Build: The Narrowing Gap

One of the more significant structural shifts in the Q1 2026 data is the narrowing price gap between resale and new-build properties. Historically, new-build carried a premium of 25–35% over equivalent resale stock — reflecting modern construction standards, energy certificates, and developer warranties. That gap has closed to 15–20% in many markets as resale prices caught up through 2025–2026.

For price-sensitive buyers, this changes the calculation. A well-presented resale property from 2015–2020 at €220,000 now competes more directly with a new-build at €255,000 than it did two years ago.

Our view at Hansson & Hertzell: resale remains the better entry point for buyers who prioritise established location, immediate availability, and the ability to inspect an actual finished property. New-build makes more sense when buying for the long term, planning to let the property, or when modern energy standards are a primary requirement.

What This Means for Swedish and Nordic Buyers

For Swedish, Norwegian, and Danish buyers, the 18.3% growth figure translates directly into home currency terms. With SEK/EUR rates relatively stable in Q1 2026, a property that cost 2,200,000 SEK in Q1 2025 is now priced around 2,600,000 SEK.

The question we hear most from Swedish buyers is: has the market gone too far, too fast? Our honest assessment is no. The Costa Blanca remains significantly cheaper per square metre than equivalent coastal property in southern France, the Balearics, or northern Italy. A 2-bed apartment with a pool in Orihuela Costa at €220,000 would cost €700,000+ in the equivalent location on the French Riviera.

What has changed is that buyers need to act more decisively. Quality resale properties at fair prices are being sold to buyers who have their paperwork in place and can commit quickly. The buyers securing the best properties are those who arrive with their NIE, Spanish bank account, and proof of funds already arranged.

Outlook for Q2–Q4 2026

Price direction: Continued upward pressure, but moderating from the extreme Q1 pace. We expect 8–12% annual growth for 2026 as a full-year figure, with some areas tempering after the Q1 spike.

Supply: Resale supply will increase modestly as prices rise and some owners decide to realise gains — but not enough to materially change the supply-demand balance until new-build completions add significant inventory from Q3 2026 onward.

Demand: Northern European buyer activity shows no structural sign of weakening. The large cohort of Swedish and Norwegian buyers aged 55–65, who accumulated significant wealth during their domestic housing markets' long bull run, continues to represent a structural tailwind for Costa Blanca prices.

Risk factors: The main downside risks are an unexpected ECB rate reversal (unlikely in 2026) or significant new legislation restricting non-resident property ownership (the proposed 100% tax has stalled and faces legal challenges). Neither scenario looks likely to materialise in 2026.

Frequently Asked Questions

Should I wait for prices to come down before buying on the Costa Blanca? Based on current fundamentals — strong demand, tightening supply, falling borrowing costs — waiting carries more risk than acting. Every major Spanish property analyst is forecasting continued growth through 2026.

Are properties in Torrevieja still good value after the price surge? Yes, relative to comparable European coastal markets. Torrevieja still offers 2-bed resale apartments from €130,000 in established residential areas, which is exceptional value for Mediterranean coastal property.

How quickly are properties selling in 2026? In the €150,000–€350,000 range, well-priced properties routinely go to reservation within 2–4 weeks of listing. Properties above €500,000 take longer — typically 1–4 months — but quality stock at fair prices is not sitting.

Is Orihuela Costa better value than Torrevieja? They suit different buyers. Orihuela Costa offers higher quality of life, slower pace, better beaches, and more developed amenities — but at higher prices. Torrevieja offers higher transaction liquidity and a larger, more diverse community at lower entry prices. Both are strong markets.

How does 18.3% growth affect the rent-vs-buy calculation? For buyers who have been renting a Spanish apartment while waiting to buy, the answer is increasingly clear: every year of waiting costs more in both higher purchase prices and foregone appreciation.

Our Current Activity on the Three Coasts

Hansson & Hertzell is active across all three of the markets we work in — Costa Blanca, Costa Cálida, and Costa del Sol. Our Q2 2026 transaction activity reflects the same picture the data shows: well-priced resale properties in the €150,000–€400,000 range are moving quickly, particularly in Orihuela Costa, Torrevieja, and the Mar Menor area.

We offer market briefings in Swedish, English, Norwegian, and Spanish for buyers at any stage of the process. If the Q1 2026 price data has prompted you to bring your purchase timeline forward, contact us for a current overview of available stock in your target area and budget.