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Everything you need to know before buying real estate is included in our Spain Property Pack
Costa Blanca remains one of Spain's most dynamic property markets in 2026, with prices continuing to rise faster than the national average.
This article breaks down the current housing prices in Costa Blanca, explains what's driving them, and gives you our forecast for the months and years ahead.
We constantly update this blog post to reflect the latest data and market shifts.
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.
Insights
- Costa Blanca property prices have climbed roughly 14% over the past 12 months, outpacing Spain's national average of around 10% for the same period.
- The neighborhood of Montgó-Partida Tosal in Jávea recorded an extraordinary 35.6% price increase in 2025, driven by extreme scarcity and international demand for sea-view homes.
- Alicante province now averages around 1,850 euros per square meter, but prime north towns like Jávea exceed 3,800 euros per square meter.
- BBVA forecasts Spain-wide price growth of 5.3% in 2026, but Costa Blanca is likely to exceed this given its stronger recent momentum.
- The ECB deposit rate sits at 2.00% as of the first half of 2026, which has eased mortgage costs compared to the 2023 peak and is supporting buyer demand.
- International buyers, especially from the UK and Northern Europe, continue to represent a disproportionately large share of Costa Blanca transactions compared to inland Spain.
- Torrevieja's Centro neighborhood saw prices jump 23.1% in 2025, making it one of the fastest-rising areas on the southern Costa Blanca.
- Walkable, sea-view apartments and townhouses in gated communities are appreciating faster than other property types in Costa Blanca right now.
- Over five years, Costa Blanca property prices could rise around 35% cumulatively, assuming mid-single-digit annual growth continues.
What are the current property price trends in Costa Blanca as of 2026?
What is the average house price in Costa Blanca as of 2026?
As of early 2026, the estimated average property price across Costa Blanca is around 265,000 euros (approximately 275,000 USD), though this varies significantly depending on whether you're buying inland or along the coast.
The average price per square meter in Costa Blanca currently sits at approximately 1,850 euros per square meter (around 1,920 USD per square meter), which reflects a blend of affordable southern towns like Torrevieja and premium northern markets like Jávea.
For a realistic picture, about 80% of property purchases in Costa Blanca fall within the 180,000 to 450,000 euro range (roughly 187,000 to 467,000 USD), with the wide spread reflecting the difference between a modest apartment in the south and a sea-view villa in the north.
How much have property prices increased in Costa Blanca over the past 12 months?
Property prices in Costa Blanca have increased by approximately 14% over the past 12 months, which is notably higher than Spain's national average of around 10%.
Depending on the town and property type, the range of price increases across Costa Blanca runs from about 10% in already-expensive prime areas like Jávea to over 15% in more affordable markets like Torrevieja and Benidorm.
The single most important factor behind this price acceleration is the persistent imbalance between strong buyer demand (especially from international purchasers) and limited supply of quality coastal properties.
Which neighborhoods have the fastest rising property prices in Costa Blanca as of 2026?
As of early 2026, the three neighborhoods with the fastest rising property prices in Costa Blanca are Montgó-Partida Tosal in Jávea, Villafranqueza-Santa Faz-Monegre in Alicante city, and Centro in Torrevieja.
Montgó-Partida Tosal in Jávea has seen an extraordinary 35.6% annual price increase, while Villafranqueza-Santa Faz-Monegre in Alicante recorded 27.8%, and Torrevieja's Centro neighborhood climbed 23.1%.
The main demand driver in these fast-growing neighborhoods is a combination of relative affordability compared to the most expensive beachfront strips, strong rental appeal, and in Jávea's case, extreme scarcity of prime hillside and sea-view properties.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Costa Blanca.
We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which property types are increasing faster in value in Costa Blanca as of 2026?
As of early 2026, sea-view apartments near the coast are appreciating fastest in Costa Blanca, followed by townhouses in gated communities, then detached villas in prime northern locations, with inland properties and older unrenovated stock lagging behind.
The top-performing category, coastal apartments with two to three bedrooms in high-demand towns like Benidorm and Torrevieja, is seeing annual appreciation of around 15% to 16%.
This property type is outperforming because it perfectly matches what the dominant buyer profile wants: easy maintenance, strong rental potential, walkability to the beach, and a manageable price point for second-home ownership.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Costa Blanca?
- How much should you pay for a house in Costa Blanca?
- How much should you pay for an apartment in Costa Blanca?
- How much should you pay for a villa in Costa Blanca?
- How much should you pay for lands in Costa Blanca?
- How much should you pay for a studio in Costa Blanca?
What is driving property prices up or down in Costa Blanca as of 2026?
As of early 2026, the top three factors driving Costa Blanca property prices are persistent undersupply of quality coastal homes, strong international and second-home buyer demand, and stabilizing interest rates that have improved mortgage affordability.
The single strongest upward pressure comes from the structural supply shortage: new construction has not kept pace with demand for years, and the best coastal plots are essentially built out, creating a scarcity premium that shows no sign of easing.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Costa Blanca here.
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What is the property price forecast for Costa Blanca in 2026?
How much are property prices expected to increase in Costa Blanca in 2026?
As of early 2026, property prices in Costa Blanca are expected to increase by approximately 7% over the full year, which is above the national Spanish average but below the exceptional growth rates seen in 2024 and 2025.
The realistic range of forecasts from different analysts runs from a conservative 4% to an optimistic 10%, with the variation depending largely on assumptions about interest rates and foreign buyer sentiment.
The main assumption underlying most forecasts is that housing supply will remain constrained throughout 2026, preventing any meaningful price correction even if demand softens slightly.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Costa Blanca.
Which neighborhoods will see the highest price growth in Costa Blanca in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Costa Blanca include San Blas-Pau and Villafranqueza-Santa Faz-Monegre in Alicante city, Pueblo Levante in Benidorm, Centro in Torrevieja, and Montgó-Partida Tosal in Jávea.
These top neighborhoods are projected to see price growth in the range of 8% to 12% in 2026, which is above the Costa Blanca average, though below their exceptional 2025 performance.
The primary catalyst driving expected growth in these areas is that they combine strong momentum with remaining room to rise, as they are not yet at the price ceiling of the most expensive beachfront strips.
One emerging neighborhood that could surprise with higher-than-expected growth is Campoamor-Carolinas-Altozano in Alicante city, which recorded 21% growth in 2025 and remains more affordable than the city's premium coastal zones.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Costa Blanca.
What property types will appreciate the most in Costa Blanca in 2026?
As of early 2026, energy-efficient apartments in walkable coastal locations are expected to appreciate the most in Costa Blanca, closely followed by townhouses in communities with pools and parking.
The projected appreciation for these top-performing property types is around 8% to 10% in 2026, supported by their strong rental appeal and alignment with what international buyers want.
The main demand trend driving appreciation is the preference among lifestyle and second-home buyers for low-maintenance, turnkey properties that can generate rental income when not in personal use.
On the other hand, older unrenovated villas with poor energy ratings are expected to underperform in 2026, as buyers increasingly factor in renovation costs and running expenses before making offers.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How will interest rates affect property prices in Costa Blanca in 2026?
As of early 2026, the stabilization of interest rates at lower levels is expected to provide modest support to Costa Blanca property prices, particularly in the mid-market segment where buyers rely more heavily on mortgages.
The ECB's deposit facility rate currently stands at 2.00% (held steady in December 2025), and most forecasters expect rates to remain stable or edge slightly lower through 2026, which should keep mortgage costs manageable.
A 1% change in mortgage interest rates typically affects property affordability by around 10% in terms of the monthly payment on a given loan amount, which translates to meaningful shifts in what buyers can offer in Costa Blanca.
You can also read our latest update about mortgage and interest rates in Spain.
What are the biggest risks for property prices in Costa Blanca in 2026?
As of early 2026, the three biggest risks for Costa Blanca property prices are buyer fatigue after two years of double-digit growth, regulatory changes affecting rental properties, and a potential slowdown in Northern European demand due to economic or currency shifts.
The single risk with the highest probability of materializing is affordability strain, as prices have risen much faster than incomes, which could lead to longer selling times and more negotiation even if outright price drops remain unlikely.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Costa Blanca.
Is it a good time to buy a rental property in Costa Blanca in 2026?
As of early 2026, buying a rental property in Costa Blanca can still make sense, but you need to be selective about location and property type, as the easy gains of recent years are unlikely to repeat.
The strongest argument in favor of buying now is that rental demand remains robust (especially for well-located two-bedroom apartments), supply is constrained, and rates are more favorable than they were in 2023, making the financing math more workable.
The strongest argument for waiting is that prices have already risen sharply, which compresses gross yields, and there is regulatory uncertainty around short-term rentals that could affect your returns.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Costa Blanca.
You'll also find a dedicated document about this specific question in our pack about real estate in Costa Blanca.
Buying real estate in Costa Blanca can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Costa Blanca?
What is the 5-year property price forecast for Costa Blanca as of 2026?
As of early 2026, Costa Blanca property prices are expected to grow by approximately 35% cumulatively over the next five years, bringing the average price to around 360,000 euros by the end of 2030.
The range of 5-year forecasts runs from a conservative 20% (if demand weakens or regulation tightens) to an optimistic 55% (if supply remains constrained and international demand stays strong).
This works out to a projected average annual appreciation rate of around 6% per year over the next five years in Costa Blanca, which is above the long-run Spanish average but below the exceptional 2024-2025 pace.
The key assumption most forecasters rely on is that housing supply will remain structurally tight, which has been true for years and shows no sign of changing given permitting constraints and limited coastal land.
Which areas in Costa Blanca will have the best price growth over the next 5 years?
The top three areas in Costa Blanca expected to have the best price growth over the next five years are prime north towns (Jávea, Altea, and Moraira), high-liquidity tourism hubs (Benidorm's beachfront zones), and value-plus-scale markets like Torrevieja Centro and surrounding areas.
These top-performing areas are projected to see 5-year cumulative price growth of 40% to 60%, outpacing the broader Costa Blanca average due to their combination of scarcity, strong demand, and proven liquidity.
This is largely consistent with our shorter-term forecast, as the same neighborhoods showing momentum now, like Montgó-Partida Tosal in Jávea or Pueblo Levante in Benidorm, have structural advantages that should persist over time.
One currently undervalued area with strong potential for outperformance is the inland belt just behind the coast in the Alicante province, where prices remain far lower but infrastructure and connectivity are improving.
What property type will give the best return in Costa Blanca over 5 years as of 2026?
As of early 2026, well-located two to three bedroom apartments near the coast are expected to give the best total return over five years in Costa Blanca, combining solid appreciation with consistent rental income potential.
The projected 5-year total return for these top-performing apartments, including both price appreciation and net rental income, could reach 50% to 70% in favorable scenarios, though individual results will vary based on specific location and management.
The main structural trend favoring apartments and townhouses is that Costa Blanca's dominant buyer profile, international second-home owners and lifestyle migrants, strongly prefers easy-to-maintain properties with rental flexibility.
For buyers seeking the best balance of return and lower risk, townhouses in established communities with pools and parking offer a middle ground, as they provide more space than apartments while maintaining good liquidity and rental appeal.
How will new infrastructure projects affect property prices in Costa Blanca over 5 years?
The top three infrastructure factors expected to impact Costa Blanca property prices over the next five years are airport capacity and connectivity improvements at Alicante-Elche Airport, rail and public transport enhancements linking coastal towns, and ongoing investment in walkable urban cores and promenades.
Properties located near completed infrastructure projects in Costa Blanca typically command a price premium of 5% to 15% compared to similar homes in less-connected locations, based on historical patterns in the region.
The neighborhoods most likely to benefit from infrastructure developments include areas near Alicante city's transport hubs, commuter-friendly zones between major towns, and urban centers receiving promenade or public space upgrades.
How will population growth and other factors impact property values in Costa Blanca in 5 years?
Costa Blanca's population is expected to grow modestly over the next five years, driven primarily by inward migration from Northern Europe and domestic relocation, which should continue to support property demand and values.
The demographic shift with the strongest influence on property demand in Costa Blanca is the aging population of lifestyle migrants who seek low-maintenance homes in warm climates, which concentrates demand on accessible, well-serviced coastal locations.
International migration patterns, particularly from the UK, Germany, the Netherlands, and Scandinavia, will remain a key driver of Costa Blanca property values, as these buyers represent a disproportionately large share of transactions compared to inland Spanish markets.
The property types and areas most likely to benefit from these demographic trends are walkable coastal apartments and townhouses in established towns with good healthcare, transport links, and year-round services.
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What is the 10 year property price outlook in Costa Blanca?
What is the 10-year property price prediction for Costa Blanca as of 2026?
As of early 2026, Costa Blanca property prices are expected to grow by approximately 75% cumulatively over the next ten years, which would bring the average price from around 265,000 euros today to roughly 460,000 euros by 2035.
The range of 10-year forecasts runs from a conservative 40% (if economic shocks or regulatory changes dampen demand) to an optimistic 120% (if supply constraints intensify and Costa Blanca's appeal as a lifestyle destination strengthens further).
This translates to a projected average annual appreciation rate of around 5.8% per year over the next decade in Costa Blanca, consistent with a desirable, supply-constrained coastal market without assuming permanently exceptional growth.
The biggest uncertainty factor in making 10-year predictions for Costa Blanca is the future direction of European interest rates and their effect on both mortgage affordability and the broader attractiveness of property as an investment.
What long-term economic factors will shape property prices in Costa Blanca?
The top three long-term economic factors that will shape Costa Blanca property prices over the next decade are the European interest rate environment, the durability of Costa Blanca's tourism and lifestyle migration appeal, and housing policy and rental regulations at both Spanish and regional levels.
The single long-term factor with the most positive potential impact on Costa Blanca property values is continued undersupply of quality coastal housing, which has persisted for years and is unlikely to reverse given limited land and permitting constraints.
The greatest structural risk to long-term property values in Costa Blanca is a sustained decline in Northern European purchasing power or appetite for Mediterranean second homes, whether due to economic conditions, currency shifts, or changing lifestyle preferences.
You'll also find a much more detailed analysis in our pack about real estate in Costa Blanca.
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 We Trust It | How We Used It |
|---|---|---|
| INE (Spain National Statistics Institute) | Spain's official statistics agency with the cleanest price index methodology. | We use it to anchor national price trends. We then translate those to Costa Blanca using Alicante-specific data. |
| INE House Price Index Press Release | Official quarterly publication with consistent methodology. | We use it as a citable snapshot of Spain's latest year-on-year growth. We cross-check it against other indices for consistency. |
| Bank of Spain Financial Stability Report | Spain's central bank and macroprudential authority for risk assessment. | We use it to frame overvaluation risk. We combine it with local price acceleration to flag areas that may be stretched. |
| Tinsa Alicante Province Data | Major Spanish valuation firm with appraisal-based data less prone to listing noise. | We use it as the backbone for Costa Blanca price levels. We layer in municipality detail from idealista on top. |
| Tinsa IMIE Local Markets | Methodology gateway for reliable local-market appraisal reporting. | We use it to justify why appraisal-led figures are reliable. We use it to discuss cycle stage and forward-looking trends. |
| idealista Alicante City Index | Spain's largest property portal with transparent, regularly updated indices. | We use it for neighborhood names and price momentum. We treat it as asking-price directionality and cross-check with appraisals. |
| idealista Benidorm Index | Granular local series at city-zone level that official stats don't publish. | We use it to identify Benidorm's fastest-rising zones. We use it to illustrate the tourism and second-home premium. |
| idealista Torrevieja Index | Clear public source for Torrevieja's intra-city splits and momentum. | We use it to show south Costa Blanca dynamics. We use it to contrast value-coast areas versus prime north. |
| idealista Jávea/Xàbia Index | Rare consistent time series for prime north-coast micro-markets. | We use it to represent the prime Costa Blanca North segment. We use neighborhood growth to highlight scarcity effects. |
| idealista Altea Index | Dependable benchmark for another core prime-market town. | We use it to triangulate prime-market levels versus Jávea and Benidorm. We discuss overpricing in sea-view pockets. |
| idealista Alicante Rental Index | Transparent rental price series from Spain's leading portal. | We use it to calculate indicative gross yields. We compare rent per square meter to sale prices for return estimates. |
| Colegio de Registradores (Property Registrars) | Registrars sit on transaction reality and validate whether prices match actual deals. | We use it as a reality check versus portal prices. We use it to ground forecasts in transaction momentum and foreign buyer data. |
| BBVA Research Real Estate Watch | Major bank research house with explicit forecasts and macro assumptions. | We use it as our conservative baseline for 2026 growth. We tilt Costa Blanca slightly higher based on local momentum. |
| Fitch Ratings Housing Outlook | Top-tier rating agency with clear 2026 range and drivers. | We use it as an upper-bound credible case for 2026. We triangulate with BBVA to produce a confident Costa Blanca estimate. |
| ECB Monetary Policy Decision | Official euro-area central bank source for policy rates driving mortgages. | We use it to anchor the interest rate backdrop as of the first half of 2026. We explain how rates affect affordability and buyer urgency. |
| Cadena SER Benidorm Report | Regional media outlet highlighting listing versus transaction price gaps. | We use it to flag listing-price froth in some towns. We remind readers that asking prices can run ahead of signed deals. |
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If you want to go deeper, you can read the following: