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What will happen in Costa Blanca’s real estate market? Will prices go up or down? Is this region still a hotspot for foreign investors? How is Spain’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with local agents, property developers, and clients who buy homes in Costa Blanca, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) Fewer Russian buyers will invest as geopolitical tensions weaken their purchasing power
Interest from Russian buyers in international real estate is dwindling, especially in areas like Costa Blanca.
One major reason is the financial sanctions on Russia, which have severely impacted the economy. The ruble has taken a hit, losing more than half its value against the US dollar and euro, making it tougher for Russians to afford properties abroad.
In Costa Blanca, while property sales to foreigners are up, Russians are buying less. Other Eastern Europeans are filling the gap, but Russian interest is clearly waning due to economic hurdles.
Real estate agents in Spain are noticing fewer inquiries from Russian clients. In fact, there's been a 33% drop in Russian investor activity in the second quarter of 2024 compared to the same time in 2023.
Experts say that geopolitical tensions and sanctions are key reasons for this decline in Russian investments. The situation is making it hard for Russians to invest internationally.
Sources: Trading Economics, Atlantic Council, Spain Real Estate News
2) Demand in the Costa Blanca property market will keep rising due to Northern European buyers
Foreign buyers from Northern Europe are set to keep the Costa Blanca property market buzzing.
In recent years, property prices in Costa Blanca have been on the rise, with expectations of a 4-8% increase by 2025. This upward trend is largely driven by foreign interest, especially in Northern Costa Blanca, where nearly half of all property transactions involve international buyers. Among these, British nationals are leading the charge, with strong interest also coming from Germans, Dutch, and Scandinavians.
The allure of Costa Blanca isn't just about the numbers. The region boasts 300 days of sunshine annually and mild winters, making it a haven for outdoor enthusiasts. Compared to other European hotspots, Costa Blanca is more affordable, making it a top pick for Northern Europeans looking for holiday homes or a new place to call home.
Getting to Costa Blanca has never been easier, thanks to the increasing number of direct flights from Northern Europe. This convenience allows potential buyers to visit and explore the area with ease, further fueling their interest in the region.
Moreover, the positive economic conditions in Northern European countries have bolstered purchasing power, ensuring that the demand for Costa Blanca properties remains strong. This combination of factors makes the region an attractive investment for those looking to enjoy a sunny lifestyle.
Sources: Grupo Garcia, 5 Real Estate, Ryanair
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.
3) More Chinese investors will focus on Costa Blanca due to its tourism and hospitality potential
Chinese investors are eyeing Costa Blanca as a prime spot for tourism and hospitality ventures.
With 87 million Chinese tourists traveling abroad in 2023 and 60.71 million in just the first half of 2024, there's a clear surge in outbound travel. This trend signals a growing interest in destinations like Costa Blanca, which could see a boost in tourism demand.
Spain is increasingly popular among Chinese travelers. In the first nine months of 2024, 517,000 Chinese tourists visited Spain, spending 17% more than in 2019. This upward trend is expected to continue, with projections showing that Chinese tourist numbers in Spain will reach 90% of 2019 levels by mid-2025.
Costa Blanca itself is thriving, with an average monthly occupancy rate of 82.3% in May 2024. Four-star hotels are doing even better, hitting 86.2% occupancy. Such high numbers highlight the region's booming tourism sector, making it a hot spot for investment.
Direct flights between China and Spain have increased, with 44 weekly flights and 55% more seats available compared to 2019. This improved connectivity makes Costa Blanca more accessible and attractive to both tourists and investors from China.
Chinese investors are particularly interested in coastal properties, which aligns perfectly with Costa Blanca's appeal. The presence of Chinese businesses and communities in the area further supports the potential for increased investment.
Sources: Euro Weekly News, PR Newswire, Euro Weekly News
4) British buyers will come back to Costa Blanca as Brexit uncertainties ease
In 2023 and 2024, British buyers flocked back to Costa Blanca, with a notable surge in property reservations.
According to Taylor Wimpey España, British reservations more than doubled in April 2024 compared to the previous year. This uptick shows a renewed enthusiasm among Brits for owning a slice of the sunny Spanish coast.
One key factor is the stabilization of the British pound against the euro. As of January 2025, the exchange rate is 1.199 EUR/GBP, making it more financially appealing for Brits to invest in Costa Blanca properties.
Moreover, improved travel and residency agreements between the UK and Spain have smoothed the path for British citizens looking to buy and live in Costa Blanca. This has likely fueled the increased activity in the property market.
With Brexit uncertainties settling, British interest in Spanish properties is on the rise, and Costa Blanca is a top choice for many. The region's appeal lies in its beautiful beaches, vibrant culture, and favorable climate.
As the market stabilizes, British buyers are expected to continue their return to Costa Blanca, drawn by both economic factors and lifestyle benefits.
Sources: YCharts, Taylor Wimpey España
5) Multicultural neighborhoods will grow as more expats move in, affecting local real estate dynamics
The growing expatriate community in Costa Blanca is reshaping the region's neighborhoods into vibrant multicultural hubs.
In 2023, Torrevieja saw a 6.7% population increase, the highest among Spanish cities, thanks to expatriates flocking to the area. This influx has created a rich tapestry of cultures, with many new residents hailing from Colombia, Peru, and Venezuela.
As more expatriates settle, there's a rising demand for international schools and multicultural services to meet their diverse needs. Nearly 45% of property deals in Costa Blanca in 2023 involved foreigners, with British, Germans, French, Belgians, and Moroccans leading the charge in the real estate market.
Costa Blanca's cultural scene is a big draw, with festivals like the Mystery Play of Elche and the Moors and Christians celebrations highlighting its multicultural vibe. These events not only enrich the local culture but also attract more expatriates eager to experience the area's diverse offerings.
With such a mix of cultures, multicultural neighborhoods are on the rise, impacting local real estate dynamics. The growing expatriate community is a key driver of this change, bringing new life and diversity to the region.
As these communities expand, they contribute to a dynamic and evolving real estate market, making Costa Blanca an attractive destination for those seeking a multicultural lifestyle.
Sources: INE's Population Census Report, Costa Blanca Real Estate Market Analysis, Annual Festivals on the Costa Blanca, Foreigners' Share in Property Transactions
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6) Luxury real estate demand will rise as tax incentives attract foreign investors
Tax incentives for foreign investors are set to give a big boost to Costa Blanca's luxury real estate market.
In 2024, foreign buyers snapped up 15,919 properties in the region, outpacing the 15,037 purchases by Spanish buyers. This shows a clear trend of international interest in Costa Blanca, making it a hot spot for global investors.
The luxury market here is already on the rise, with Taylor Wimpey España reporting a 40% jump in housing reservations compared to last year. Buyers from 17 different countries are flocking to the area, drawn by its charm and investment potential.
Marbella's success story, fueled by international demand and smart tax policies, is a great example of how tax incentives can lure foreign investors. Costa Blanca, with its stunning beaches and pleasant weather, is a magnet for foreign buyers, making up 40% of real estate deals in Alicante in 2023.
These tax breaks are not just about saving money; they’re about making Costa Blanca an even more attractive place to invest. The region's appeal is undeniable, and these incentives are likely to draw even more international attention.
With such a diverse group of buyers and favorable conditions, Costa Blanca is poised to become a top choice for luxury real estate investors worldwide.
Sources: Mediterranea Villas, Euro Weekly News, Pure Living Properties
7) Demand for modern apartments in Costa Blanca will grow as young professionals move there for remote work opportunities
Remote work is booming, and it's changing where people want to live.
Young professionals are flocking to places like Costa Blanca for its perfect mix of work and play. With its laid-back vibe and modern amenities, Costa Blanca offers properties with dedicated remote workspaces that are a hit with this crowd.
Spain's digital nomad visa is a game-changer, even if its success is moderate. It gives young professionals a chance to live and work in Spain, adding to Costa Blanca's allure. The visa opens doors for remote workers to enjoy the Spanish lifestyle.
Compared to other European spots, Costa Blanca is a bargain. Affordable property prices make it easier for young professionals to invest in modern apartments that suit their remote work needs. The region's quality of life is a big draw, too.
Modern apartments with high-end services are in demand. Young professionals want places with 24/7 concierge, private spas, and luxury gyms. Costa Blanca meets these needs, offering a high quality of life for remote workers.
Infrastructure upgrades, like better internet and more coworking spaces, make Costa Blanca even more attractive. These spaces offer a community feel with pools, gardens, and bars, creating a sense of belonging for remote workers.
Social media is buzzing about Costa Blanca. Platforms like Instagram show off its stunning landscapes and vibrant lifestyle, drawing in more remote workers. Testimonials from those who moved highlight the balance of work and leisure, making it a top choice.
Sources: Global Citizen Solutions, Euronews, Coliving Costa Blanca, Marina Digorn, Flowlu
8) Property values in Altea will rise significantly as it becomes a cultural hub for artists and creatives
Altea is quickly becoming a cultural hotspot, and this shift is boosting property values.
With a surge in art galleries and events, like those at the Aurum Altea Art Center, the town is drawing in art lovers and collectors. This lively scene is a big pull for those who cherish creativity and culture.
The real estate market in Altea is on the rise, with property prices climbing steadily. In 2024, there was a 4.7% increase in property prices, which is a bit higher than the national average. This uptick is mainly because of the high demand for luxury homes, especially from international buyers who are captivated by Altea's unique allure.
Altea's charm is also catching the eye of artists and creatives. The Faculty of Fine Arts at Miguel Hernández University in Altea is a major attraction, bringing in students and professionals. Local efforts and new infrastructure, like studios and exhibition spaces, are bolstering this artistic community, making Altea a desirable place to live and work.
These developments are turning Altea into a vibrant cultural hub, which is reflected in the rising property values. The town's unique blend of art, culture, and scenic beauty is a winning combination for those looking to invest in property.
As Altea continues to grow as a cultural center, it's becoming a prime spot for property investment. The town's transformation is not just about art; it's about creating a thriving community that attracts people from all walks of life.
Sources: Aurum Altea, Visit Altea, Spain Life Exclusive
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.
9) Rental yields in Orihuela Costa will drop because there are too many rental properties available
The rental market in Orihuela Costa is seeing a decline in yields because there are just too many rental properties available.
Over the past few years, especially in 2023 and 2024, the number of rental listings has shot up. This means renters have more choices, which can lead to lower rental yields for property owners.
New residential developments are popping up all over Orihuela Costa, adding to the oversupply. These high-quality projects are attracting buyers and investors, but they’re also flooding the market with more rental options.
Vacancy rates are climbing, hinting that there are more properties than tenants. Even without exact numbers, it's clear that the imbalance between supply and demand is affecting rental yields. More properties mean landlords are competing fiercely, often lowering prices to attract tenants.
As a result, rental prices are dropping, which is not great news for those hoping to make a profit. The increased competition among landlords is driving down rental prices, impacting overall yields.
Sources: Rosa MH, R&B Homes, Ibero Homes, Indomio
10) Property prices in Costa Blanca's inland areas will grow slowly due to limited infrastructure development
The inland areas of Costa Blanca are seeing slower growth in property prices due to limited infrastructure development.
Historically, the focus has been on coastal hotspots like Benidorm and Javea, where most new developments and investments have been concentrated. These areas naturally attract more buyers, leaving the inland regions with less attention and resources.
Population growth is another piece of the puzzle. In places like the Marina Alta region, which includes several inland towns, there's been only a slight increase in population. Meanwhile, coastal areas such as Denia and Alicante city are bustling with more significant growth, driving up demand for housing there.
Transportation is a big deal too. Inland areas lack the transportation links and public transit options that make coastal regions more appealing. This limited connectivity means fewer people are interested in moving there, which in turn affects property demand.
People often prefer places with easy access to amenities and services, and the inland areas just don't offer that level of convenience. This is why the coastal regions continue to be more attractive to both residents and investors.
So, if you're considering buying property in Costa Blanca, keep in mind that the inland areas might not see the same rapid growth as their coastal counterparts. The infrastructure and population dynamics play a crucial role in shaping the property market here.
Sources: Fuster Associates, Euro Weekly News
11) Demand for accessible and senior-friendly housing in Costa Blanca will grow as the population ages
The aging population in Costa Blanca is driving up the demand for accessible and senior-friendly housing.
In recent years, especially around 2023 and 2024, the number of people aged 65 and over in Alicante Province has surged. This area, part of the beautiful Costa Blanca, is seeing a demographic shift where a significant portion of the population now needs homes that cater to their specific needs.
Spain's life expectancy is climbing, meaning more people will live longer and require housing that supports their independence and safety. Developments like Edificio Jazmín are becoming popular because they offer a mix of autonomy and community support, which is exactly what many seniors are looking for.
Costa Blanca's sunny climate and stunning views are a magnet for retirees, which further boosts the demand for senior-friendly housing. Real estate developers are catching on and are now focusing on building homes with accessibility features to meet the needs of this growing demographic.
The interest in retirement homes and accessible housing options is clear. More people are actively seeking properties that fit their lifestyle and health needs, making this a hot market for developers and buyers alike.
Sources: The Olive Press, Euro Weekly News, Sur in English, Ciudad Patricia
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12) Demand for properties in northern Costa Blanca will grow as they offer a quieter lifestyle than the busy southern areas
Properties in the northern part of Costa Blanca are becoming more desirable due to their quieter lifestyle.
In towns like Javea, Denia, Moraira, and Altea, property prices have seen a growth of about 5-7%, which is slightly above the national average. This trend is largely driven by people seeking less crowded living spaces. Foreign buyers, particularly from the UK, Germany, the Netherlands, and Scandinavia, are showing a strong interest in this area.
These buyers are attracted by the affordable luxury properties and the peaceful environment that the northern Costa Blanca offers. The region's natural beauty and scenic views add to its appeal, making it a top choice for those looking to escape the hustle and bustle of busier areas.
Another factor contributing to the area's desirability is its lower crime rates compared to other regions. This makes it a safer option for families and retirees who prioritize security and peace of mind.
Moreover, the northern Costa Blanca boasts better air quality and less pollution than the southern parts, which is a significant draw for those seeking a healthier lifestyle. The clean air and serene surroundings make it an ideal place for outdoor activities and relaxation.
With its combination of tranquility, natural beauty, and safety, the northern Costa Blanca is becoming a preferred destination for property buyers looking for a more laid-back lifestyle.
Sources: Grupo Garcia, Alegria Premium, The Agency RE Costa Blanca North
13) Buyers will prioritize health and wellness amenities, shaping new property developments
Property buyers are now prioritizing health and wellness amenities, especially in areas like Costa Blanca.
In Altea, new homes often feature private gyms, pools, and spa facilities, making it easy for residents to focus on their well-being without stepping outside. Developments like The View Marbella are upping the ante with luxurious spas that include steam rooms, saunas, and ice baths, all complemented by gyms with stunning garden views.
There's a growing trend among buyers who want homes that not only reduce their carbon footprint but also boost their mental and physical health. This shift is leading to more properties that use sustainable building practices, such as energy certification and solar panels, which are particularly appealing to health-conscious individuals.
Consumer surveys highlight a strong preference for living spaces that support a health-oriented lifestyle. People are increasingly drawn to homes that offer a blend of comfort and sustainability, ensuring they can maintain a healthy lifestyle while also being environmentally responsible.
In Costa Blanca, the demand for properties with wellness features is reshaping the real estate market. Buyers are looking for homes that provide a sanctuary for relaxation and rejuvenation, making health and wellness amenities a key selling point.
As this trend continues, developers are focusing on creating communities that prioritize well-being, offering residents a holistic living experience that caters to both their physical and mental health needs.
Sources: Marina Digorn, The Agency RE Costa Blanca North, Global Wellness Institute, Wilma SB
14) Property prices in Benidorm will stabilize as the tourism market becomes saturated
Benidorm's property prices have seen a significant rise, peaking in October 2024 at €3,129 per square meter.
One of the main reasons for this increase is the scarcity of land available for new developments, especially in prime locations. This lack of space, combined with a high demand for properties, particularly in the luxury and beachfront sectors, has been pushing prices up.
Interestingly, hotel occupancy rates in Benidorm are showing signs of leveling off. In 2023, the occupancy rate was 80.4%, which was close to the record figures of 2019. By April 2024, it had slightly decreased to 75.6%, suggesting that the tourism market might be reaching its saturation point.
For potential buyers, this stabilization in tourism could mean a more balanced property market in the near future. The high demand for luxury and beachfront properties is still there, but with limited land, the market dynamics are shifting.
As Benidorm continues to attract tourists, the property market is expected to stabilize, offering a more predictable environment for buyers. The combination of limited land availability and a plateau in tourism activity suggests that the rapid price increases might slow down.
For those considering investing in Benidorm, understanding these market dynamics is crucial. The current trends indicate that while the market is still attractive, it is also reaching a point of saturation in terms of tourism and property development.
Sources: Indomio, Euro Weekly News, Costa Prime
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.