Authored by the expert who managed and guided the team behind the Spain Property Pack

Everything you need to know before buying real estate is included in our Spain Property Pack
Trying to figure out if January 2026 is a smart time to buy property in Costa Blanca can feel overwhelming, especially with so much conflicting advice out there.
In this article, we break down the current housing prices in Costa Blanca and the key signals that actually matter for buyers right now.
We constantly update this blog post with fresh data and analysis, so you always have the latest picture of the Costa Blanca property market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Costa Blanca.
So, is now a good time?
As of early 2026, it's rather yes for buying property in Costa Blanca, but only if you pick your spot carefully and don't overpay.
The strongest signal is that supply remains structurally tight across Costa Blanca, with new construction failing to keep up with demand, which keeps prices supported.
Another key signal is that mortgage rates have dropped significantly from their 2024 peak, with average rates around 2.9%, making monthly payments more manageable for buyers.
Tourism demand stays strong (Alicante airport is even expanding), international buyers keep flowing in, and rental yields in good areas still look decent at 5% to 7% gross for apartments.
The smartest strategy right now is to focus on prime, year-round neighborhoods like Playa de San Juan or Jávea for apartments and townhouses, and be very careful with tourist-rental assumptions given the new Valencian regulations.
This is not financial or investment advice, we don't know your personal situation, and you should always do your own research before making any property purchase.
Is it smart to buy now in Costa Blanca, or should I wait as of 2026?
Do real estate prices look too high in Costa Blanca as of 2026?
As of early 2026, property prices in Costa Blanca look high compared to what local incomes can support, but they don't show the extreme overvaluation signals you'd see before a bubble pops.
One clear sign that prices are stretched in Costa Blanca is that Alicante city hit around 2,670 euros per square meter in late 2025, which is a record high for the local price series tracked by major portals.
However, Banco de España's latest stability report suggests that Spain-wide valuations sit in a modest band rather than extreme territory, and they emphasize that coastal resort markets like Costa Blanca behave differently from the national average because international buyers and tourism demand drive prices independently of local affordability.
You can also read our latest update regarding the housing prices in Costa Blanca.
Does a property price drop look likely in Costa Blanca as of 2026?
As of early 2026, the likelihood of a meaningful property price drop in Costa Blanca over the next 12 months looks low, though selective dips in weaker submarkets remain plausible.
For Costa Blanca specifically, we estimate a realistic price change range of minus 3% to plus 6% over the coming year, with most prime coastal areas staying flat or edging up rather than falling.
The single macro factor that would most increase the odds of a price drop in Costa Blanca is a sharp rebound in ECB interest rates, because higher mortgage costs would squeeze affordability for both Spanish and international buyers who finance their purchases.
That said, most forecasters expect the ECB to hold rates steady or ease slightly further in 2026, so a rate shock looks unlikely unless inflation unexpectedly spikes again.
Finally, please note that we cover the price trends for next year in our pack about the property market in Costa Blanca.
Could property prices jump again in Costa Blanca as of 2026?
As of early 2026, there's a medium likelihood of renewed price jumps in Costa Blanca, especially in the most desirable coastal micro-markets where supply is genuinely scarce.
We estimate an upside price range of 4% to 8% is plausible over the next 12 months in prime areas like Jávea, Altea, and beachfront Alicante, though the broader market will likely see more modest gains.
The single biggest demand-side trigger that could push Costa Blanca prices higher is continued ECB rate cuts, because lower mortgage rates directly improve what buyers can afford, and Costa Blanca's international buyer pool is particularly sensitive to financing costs.
Please also note that we regularly publish and update real estate price forecasts for Costa Blanca here.
Are we in a buyer or a seller market in Costa Blanca as of 2026?
As of early 2026, Costa Blanca is a split market: sellers have the upper hand for turnkey properties in prime coastal areas, while buyers gain leverage when negotiating on older stock, inland locations, or homes needing renovation.
Although official months-of-inventory data for Costa Blanca is hard to pin down precisely, the combination of record-high prices in Alicante city and consistently tight supply suggests effective inventory sits well below the six-month threshold that would signal a balanced market.
Price reductions in Costa Blanca appear more common on properties with compromises like poor energy ratings, dated interiors, or weak locations, which tells us that seller leverage is strong for quality homes but evaporates quickly when a property has flaws.
Are homes overpriced, or fairly priced in Costa Blanca as of 2026?
Are homes overpriced versus rents or versus incomes in Costa Blanca as of 2026?
As of early 2026, Costa Blanca homes look stretched versus local incomes but not wildly overpriced versus rents, because rental prices have surged nearly as fast as purchase prices in recent years.
The price-to-rent ratio in Costa Blanca for a typical apartment works out to roughly 15 to 18 times annual rent, which is above the 12 to 15 range often considered balanced but still supported by strong rental demand from tourists and expats.
The price-to-income multiple in Costa Blanca is much harder for locals to stomach, with Alicante province median household incomes meaning a typical family would need 10 or more years of gross income to buy an average coastal apartment, which explains why the market depends heavily on foreign buyers and retirees with outside wealth.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Costa Blanca.
Are home prices above the long-term average in Costa Blanca as of 2026?
As of early 2026, Costa Blanca prices in prime coastal areas sit at or near their nominal highs, with Alicante city's price series showing late 2025 as the peak of its recorded history.
Over the past 12 months, Costa Blanca prices have risen roughly 8% to 10% in the strongest submarkets, which outpaces the pre-pandemic long-run average of around 3% to 5% annual growth and reflects the post-Covid demand surge for lifestyle properties.
In inflation-adjusted terms, BBVA Research notes that Spain-wide prices remain below the 2007-2008 bubble peak, but this national framing can mislead Costa Blanca buyers because specific beachfront and walkable neighborhoods now trade at or above their historical highs in real terms.
What local changes could move prices in Costa Blanca as of 2026?
Are big infrastructure projects coming to Costa Blanca as of 2026?
As of early 2026, the biggest infrastructure project set to impact Costa Blanca property prices is the expansion of Alicante-Elche airport, which is the main gateway for tourists and international buyers and directly supports long-term demand for coastal homes.
Aena has already launched the expansion process, with planning and initial works underway, and the project is expected to increase capacity over the coming years, making Costa Blanca even more accessible for weekend visitors and second-home owners from northern Europe.
A second notable project is the N-332 road widening around Torrevieja in the Vega Baja area, which should ease summer congestion and improve commute times, potentially boosting property values in south Costa Blanca towns like Torrevieja, Orihuela Costa, and surrounding urbanizaciones.
For the latest updates on the local projects, you can read our property market analysis about Costa Blanca here.
Are zoning or building rules changing in Costa Blanca as of 2026?
The most important rule change affecting Costa Blanca property in 2026 is not traditional zoning but rather the Valencian regional government's crackdown on tourist rental licensing, which is reshaping how investors think about short-term rental income.
As of early 2026, this tourist rental regulation tightening is putting downward pressure on properties bought primarily for holiday letting, while potentially supporting long-term rental supply and stabilizing prices in areas where enforcement is strongest.
The areas most affected are dense coastal apartment blocks in towns like Alicante city, Benidorm, and Torrevieja, where thousands of tourist apartments have been delisted or face registry compliance issues, meaning buyers targeting rental income need to factor in real licensing risk.
Are foreign-buyer or mortgage rules changing in Costa Blanca as of 2026?
As of early 2026, the biggest foreign-buyer rule change affecting Costa Blanca is Spain's elimination of the Golden Visa program in April 2025, which removed the investor residency route for non-EU buyers purchasing property worth 500,000 euros or more.
This Golden Visa termination has modest impact on Costa Blanca specifically because most demand comes from EU citizens and UK lifestyle buyers rather than visa-seeking investors, but it does remove one tailwind for luxury villa sales to non-EU high-net-worth individuals.
On the mortgage side, there are no major new LTV or stress-test rules being introduced, so the main factor shaping Costa Blanca affordability remains the ECB's interest rate path, and with rates now much lower than the 2024 peak, financing conditions have improved meaningfully for buyers.
You can also read our latest update about mortgage and interest rates in Spain.
Will it be easy to find tenants in Costa Blanca as of 2026?
Is the renter pool growing faster than new supply in Costa Blanca as of 2026?
As of early 2026, renter demand in Costa Blanca appears to be growing faster than new rental supply, especially for long-term tenancies in prime areas where tourism and expat inflows keep demand strong while construction lags.
The clearest demand signal in Costa Blanca is sustained tourism growth combined with steady international migration, with INE data showing continued strength in non-hotel tourist accommodation occupancy and Alicante province attracting remote workers and retirees from northern Europe.
On the supply side, new rental completions in Costa Blanca remain insufficient according to BBVA Research's national analysis, and locally, the tourist rental crackdown is pushing some units from short-term into long-term supply, but not enough to balance the market in high-demand neighborhoods.
Are days-on-market for rentals falling in Costa Blanca as of 2026?
As of early 2026, days-on-market for well-priced rentals in Costa Blanca's best areas appears to be falling, with quality properties in prime locations often finding tenants within one to two weeks of listing.
The gap between best and weaker areas in Costa Blanca is significant: a modern apartment in Playa de San Juan or Jávea might rent in days, while a dated unit in an inland urbanización could sit for weeks or even months.
The main reason days-on-market falls in Costa Blanca is the chronic undersupply of quality rental stock combined with seasonal tourism peaks, meaning landlords with good properties in the right locations face strong competition from tenants.
Are vacancies dropping in the best areas of Costa Blanca as of 2026?
As of early 2026, vacancies in Costa Blanca's best-performing rental areas like Playa de San Juan, Jávea, Dénia, La Zenia, and Benidorm's beachfront appear to be low and staying low, with strong year-round demand from a mix of tourists, expats, and remote workers.
In these top Costa Blanca neighborhoods, effective vacancy rates likely sit below 3% to 4%, compared to perhaps 6% to 8% in weaker inland or oversupplied urbanización areas where seasonal demand drops off sharply in winter.
One practical sign that the best Costa Blanca rental areas are tightening first is that landlords are increasingly able to raise rents between tenancies without losing occupancy, something that wouldn't happen if vacancies were rising.
By the way, we've written a blog article detailing what are the current rent levels in Costa Blanca.
Am I buying into a tightening market in Costa Blanca as of 2026?
Is for-sale inventory shrinking in Costa Blanca as of 2026?
As of early 2026, for-sale inventory in Costa Blanca's prime coastal areas feels effectively tight, even if headline listing counts fluctuate, because quality properties that tick all the boxes remain scarce relative to buyer demand.
Precise months-of-supply data for Costa Blanca is hard to estimate reliably, but the combination of record-high prices and persistent buyer interest suggests effective inventory sits well below the five to six months that would indicate a balanced market in most areas.
The most likely reason inventory feels tight in Costa Blanca is that existing owners are reluctant to sell when they'd need to buy back into the same expensive market, and new construction simply isn't delivering enough units to fill the gap.
Are homes selling faster in Costa Blanca as of 2026?
As of early 2026, well-priced homes in Costa Blanca's best locations appear to be selling faster than a year ago, while properties with flaws or unrealistic asking prices can still linger for months.
Year-over-year, the trend in Costa Blanca suggests that median days-on-market for quality stock has compressed, driven by the combination of tight supply, improved mortgage affordability compared to 2024, and sustained international buyer interest.
Are new listings slowing down in Costa Blanca as of 2026?
As of early 2026, we estimate that new for-sale listings in Costa Blanca are not keeping pace with buyer demand in the most desirable areas, though exact year-over-year changes are difficult to pin down without comprehensive local data.
Seasonally, Costa Blanca typically sees listing activity pick up in spring when sellers prepare for the summer buying season, but current levels appear to be running below what strong demand would require to balance the market.
The most plausible reason new listings are slow in Costa Blanca is seller caution: owners who bought or refinanced at lower rates are reluctant to sell and re-enter a market where prices are high and mortgage rates, while improved, are still above pre-2022 levels.
Is new construction failing to keep up in Costa Blanca as of 2026?
As of early 2026, new construction in Costa Blanca is not keeping pace with housing demand, particularly for the type of quality coastal homes that buyers actually want to purchase.
BBVA Research explicitly notes that Spain-wide construction growth remains insufficient to prevent continued price increases through 2026, and this dynamic is even more pronounced in Costa Blanca where coastal buildable land is inherently limited.
The single biggest bottleneck limiting new construction in Costa Blanca is the scarcity of developable coastal land combined with lengthy permitting processes, which means even strong developer appetite cannot quickly translate into new supply.
Will it be easy to sell later in Costa Blanca as of 2026?
Is resale liquidity strong enough in Costa Blanca as of 2026?
As of early 2026, resale liquidity in Costa Blanca is strong in the right locations, with well-priced properties in prime neighborhoods like Playa de San Juan, Jávea, Altea, La Zenia, and Benidorm typically finding buyers within a reasonable timeframe.
Median days-on-market for resale homes in Costa Blanca's best areas likely sits in the 60 to 90 day range for realistic pricing, which is healthy by European second-home market standards and reflects the broad buyer pool of domestic, EU, and UK purchasers.
The property characteristics that most improve resale liquidity in Costa Blanca are walkability to beaches or town centers, outdoor space like terraces or gardens, and good energy efficiency ratings, because these features appeal to both lifestyle buyers and rental investors.
Is selling time getting longer in Costa Blanca as of 2026?
As of early 2026, selling time in Costa Blanca appears stable to slightly shorter for quality properties compared to last year, though overpriced or compromised listings can take significantly longer to move.
The current median days-on-market in Costa Blanca likely ranges from around 60 days for prime turnkey properties to 120 days or more for homes needing work or in less desirable locations.
One clear reason selling time can lengthen in Costa Blanca is affordability pressure: when prices reach levels that stretch buyer budgets, purchasers become pickier and negotiate harder, which slows transactions for anything less than perfect.
Is it realistic to exit with profit in Costa Blanca as of 2026?
As of early 2026, the likelihood of exiting with a profit in Costa Blanca is medium to high if you buy smartly, hold for at least three to five years, and choose a location with genuine scarcity value.
The estimated minimum holding period in Costa Blanca that typically makes exiting with profit realistic is around four to five years, which gives time for price appreciation to offset transaction costs and any market fluctuations.
Total round-trip costs for buying and selling in Costa Blanca typically run 12% to 15% of the property value, covering transfer tax (around 10%), notary and registry fees, agency commissions, and capital gains tax, which in euros might mean 30,000 to 45,000 euros on a 300,000 euro property.
The single factor that most increases profit odds in Costa Blanca is buying in a proven high-demand neighborhood like Playa de San Juan, Jávea, or La Zenia where both resale demand and rental fallback options are strong, rather than chasing apparent bargains in weaker locations.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Costa Blanca, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| idealista | Spain's largest property portal with consistent price tracking since 2006. | We used their Alicante price series to anchor current Costa Blanca price levels. We compared these figures to historical data to assess whether prices are at record highs. |
| Banco de España | Spain's central bank and the key reference for financial stability assessments. | We used their stability report to check whether Spain-wide housing looks overvalued. We then applied their geographic nuance to Costa Blanca's specific market conditions. |
| BBVA Research | Major bank research team with transparent macro forecasts used across the industry. | We used their supply-demand analysis to frame why prices keep rising despite affordability concerns. We adapted their national findings to Costa Blanca's unique demand drivers. |
| European Central Bank | The definitive source for eurozone policy rates that drive mortgage costs. | We used ECB rate data to assess financing conditions for Costa Blanca buyers. We then stress-tested affordability under different rate scenarios. |
| INE Income Atlas | Spain's official statistics office providing verified household income data. | We used Alicante province income tables to calculate price-to-income ratios. We compared local purchasing power to typical Costa Blanca property prices. |
| INE Mortgage Statistics | Official national data on mortgage volumes, terms, and interest rates. | We used their average rate figures to ground current financing conditions. We then assessed how rate changes affect Costa Blanca buyer budgets. |
| INE Tourism Data | Official statistics on tourist accommodation occupancy across Spain. | We used their non-hotel accommodation data to validate tourism demand in Costa Blanca. We linked this to rental market pressure and second-home buyer interest. |
| DOGV Valencian Gazette | The official publication for Valencian regional laws and regulations. | We reviewed the tourist rental decree to understand compliance requirements. We then assessed which Costa Blanca property types face the most regulatory risk. |
| Aena | Spain's airport operator and primary source for infrastructure investment plans. | We used their Alicante-Elche expansion announcement to validate long-term demand drivers. We linked airport capacity to Costa Blanca's accessibility advantage. |
| Spain Transport Ministry | Official government source for major road and infrastructure projects. | We used their N-332 widening update to identify south Costa Blanca improvements. We assessed how better access could support property values in Torrevieja and Vega Baja. |
| Cadena SER | Major Spanish media outlet reporting on verified rental market data. | We used their rent increase reporting to validate Costa Blanca rental pressure. We triangulated their figures with official sources to confirm the trend. |
| El País | Spain's leading newspaper with verified reporting on regulatory enforcement. | We used their coverage of tourist apartment delistings to assess enforcement reality. We incorporated this into our risk analysis for short-term rental investors. |
| MIVAU Housing Ministry | Spain's housing ministry and official source for residency and visa policy changes. | We confirmed Golden Visa termination details from their announcement. We assessed how this affects non-EU buyer demand in Costa Blanca's luxury segment. |
| EMMI Euribor | The official administrator and publisher of Euribor benchmark rates. | We used Euribor data to understand floating-rate mortgage risk. We translated benchmark movements into payment sensitivity for Costa Blanca buyers with variable mortgages. |