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
If you're thinking about investing in property on the Costa Blanca, understanding rental yields is the first step to making a smart decision.
This article breaks down current gross and net yields, explains which neighborhoods deliver the best returns, and shows you what costs will eat into your profits.
We constantly update this blog post so you always have the freshest data available.
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's average gross rental yield sits around 5.8% in early 2026, but the spread between neighborhoods can be as wide as 3.5% to 7.5%.
- Torrevieja consistently outperforms the Costa Blanca average with yields near 6.1%, thanks to lower entry prices compared to rents.
- North-coast prime areas like Jávea and Moraira typically compress yields to around 4% to 4.5% because buyers pay a lifestyle premium that rents don't fully recover.
- Studios and one-bedroom apartments in non-prime but well-connected Costa Blanca neighborhoods often deliver the highest rent per euro invested.
- Community fees, IBI property tax, and local waste charges can shave 0.3% to 0.8% off your gross yield before counting maintenance or vacancy.
- Full-service property management on the Costa Blanca typically costs 8% to 12% of annual rent, plus around one month's rent for tenant placement.
- Salt air and sun exposure near the coast can accelerate exterior wear on villas and townhouses, pushing maintenance costs higher than inland properties.
- The TRAM d'Alacant expansion and Alicante-Elche Airport upgrades are the infrastructure projects most likely to lift rents in connected neighborhoods.
What are the rental yields in Costa Blanca as of 2026?
What's the average gross rental yield in Costa Blanca as of 2026?
As of early 2026, the average gross rental yield across Costa Blanca sits at approximately 5.8% per year when mixing all common property types, including apartments, townhouses, villas, and houses.
Most typical residential properties fall within a realistic gross yield range of 4.3% to 6.5%, with lower yields in premium coastal areas and higher yields in affordable working-class neighborhoods.
This Costa Blanca average of around 5.8% sits slightly below Spain's national average of roughly 6.5% gross, mainly because coastal lifestyle pricing pushes purchase prices up relative to achievable rents.
The single biggest factor shaping gross yields right now is the gap between tourism-driven purchase demand and the ceiling on what year-round tenants can actually pay.
What's the average net rental yield in Costa Blanca as of 2026?
As of early 2026, the average net rental yield on the Costa Blanca is approximately 4.0% per year after deducting normal recurring landlord costs and a realistic vacancy buffer.
The typical gap between gross and net yields runs between 1.5 and 2.5 percentage points, reflecting the reality of owning rental property in a coastal Spanish market.
Community fees, especially in buildings with pools, gardens, and lifts, tend to be the single largest expense dragging gross yield down to net yield, often costing several hundred euros monthly.
Most standard Costa Blanca investment properties deliver net yields in the 3.0% to 5.0% range, varying based on community charges, vacancy management, and whether you use professional management.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Costa Blanca.
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 yield is considered "good" in Costa Blanca in 2026?
A gross rental yield of 6.5% or higher is generally considered "good" by local investors on the Costa Blanca, as it typically translates to a net yield above 4.5% after standard costs.
The threshold separating average from high-performing properties is around 7% gross, meaning you've found a well-priced property in a neighborhood with solid year-round tenant demand.
How much do yields vary by neighborhood in Costa Blanca as of 2026?
As of early 2026, the spread in gross rental yields between highest and lowest-yield neighborhoods is substantial, ranging from about 3.5% in premium coastal pockets to 7.5% in more affordable areas.
The highest yields show up in neighborhoods with reasonable entry prices but steady year-round demand, such as Virgen del Remedio in Alicante city, Centro in Torrevieja, and Villamartín in Orihuela Costa.
The lowest yields cluster in premium lifestyle areas like Playa de San Juan in Alicante, the marina district of Dénia, and prime spots in Jávea, Moraira, and Altea Hills.
Yields vary so dramatically because purchase prices in desirable areas are driven by lifestyle demand and foreign buyers, while rental rates are anchored by what year-round residents can afford.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Costa Blanca.
How much do yields vary by property type in Costa Blanca as of 2026?
As of early 2026, gross rental yields across different property types range from around 4% for detached villas up to roughly 7% for well-located studios and one-bedroom apartments.
Studios and one-bedroom apartments in well-connected neighborhoods currently deliver the highest average gross yields because they offer the best rent-per-euro-invested ratio.
Villas and detached houses typically deliver the lowest average gross yields because their prices are lifestyle-driven, and higher maintenance costs push net yields even lower.
Yields differ between property types because smaller units rent for more per square meter while larger properties carry higher running costs and pricing often reflects buyer lifestyle preferences rather than rental potential.
By the way, you might want to read the following:
- What rental yields can you expect for an apartment in Costa Blanca?
- What rental yields can you expect for a villa in Costa Blanca?
What's the typical vacancy rate in Costa Blanca as of 2026?
As of early 2026, the typical vacancy rate for long-term residential rentals on the Costa Blanca sits at approximately 5%, translating to roughly 18 days per year empty between tenants.
Vacancy rates range from 3% in year-round employment centers like central Alicante up to 8% in heavily tourism-dependent coastal areas with more seasonal demand.
The main factor driving vacancy rates is whether the local economy supports year-round tenant demand through jobs, universities, and healthcare, or relies primarily on seasonal tourism.
Costa Blanca's vacancy rate of around 5% is tighter than many Spanish regional averages, reflecting strong foreign resident demand and limited new rental supply.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Costa Blanca.
What's the rent-to-price ratio in Costa Blanca as of 2026?
As of early 2026, the average rent-to-price ratio on the Costa Blanca is approximately 0.48% per month, meaning monthly rent equals about half a percent of purchase price, or roughly 5.8% annually.
A rent-to-price ratio above 0.5% monthly (about 6% annually) is considered favorable for buy-to-let investors because it suggests meaningful income relative to purchase price, and this ratio is essentially your gross rental yield.
Costa Blanca's ratio of around 0.48% sits in the middle range for Spanish coastal markets, higher than ultra-premium areas like Marbella but lower than inland cities without international lifestyle pricing.
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 neighborhoods and micro-areas in Costa Blanca give the best yields as of 2026?
Where are the highest-yield areas in Costa Blanca as of 2026?
As of early 2026, the highest-yield neighborhoods include Virgen del Remedio and Carolinas-Altozano in Alicante city, Centro and El Acequión in Torrevieja, and Villamartín in Orihuela Costa.
These top-performing areas typically deliver gross rental yields in the 6% to 7.5% range, well above the regional average and translating to attractive net returns after costs.
The main characteristic these high-yield neighborhoods share is affordable entry prices combined with steady year-round tenant demand from local workers, families, or expats prioritizing value over beachfront views.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Costa Blanca.
Where are the lowest-yield areas in Costa Blanca as of 2026?
As of early 2026, the lowest-yield neighborhoods include Playa de San Juan in Alicante, prime waterfront areas of Jávea and Moraira, and the marina district and Las Rotas in Dénia.
These low-yield areas typically deliver gross rental yields in the 3.5% to 4.5% range, meaning investors accept lower income returns in exchange for lifestyle appeal and potential capital appreciation.
Yields are compressed here because purchase prices are driven by scarcity and international lifestyle demand, while rental rates remain anchored by what year-round tenants can afford.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Costa Blanca.
Which areas have the lowest vacancy in Costa Blanca as of 2026?
As of early 2026, the neighborhoods with lowest residential vacancy rates include Centro and Benalúa in Alicante city, central Elche, and well-connected areas of El Campello near TRAM stations.
These low-vacancy areas typically experience vacancy rates in the 2% to 4% range, meaning properties rarely sit empty for more than a week or two between tenants.
The main demand driver keeping vacancy low is stable local employment, universities, healthcare facilities, and good public transit connections attracting year-round tenants.
The trade-off is that reliable tenant demand often comes with higher purchase prices, which can compress gross yields even though consistent occupancy helps protect net returns.
Which areas have the most renter demand in Costa Blanca right now?
The neighborhoods with strongest renter demand include Playa de San Juan in Alicante, Levante and Rincón de Loix in Benidorm, and La Zenia and Cabo Roig in Orihuela Costa.
The renter profile driving demand is a mix of foreign residents seeking coastal lifestyle properties, remote workers from northern Europe, and young professionals drawn by beach access and urban amenities.
Rental listings in these high-demand neighborhoods typically get filled within one to three weeks, with well-priced two-bedroom apartments often receiving multiple inquiries within days.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Costa Blanca.
Which upcoming projects could boost rents and rental yields in Costa Blanca as of 2026?
As of early 2026, the top infrastructure projects expected to boost rents are the Alicante-Elche Airport expansion by Aena, the TRAM d'Alacant network upgrades by FGV, and the broader 839 million euro regional rail modernization plan.
Neighborhoods most likely to benefit include areas near TRAM stations in Alicante city, the Benidorm-Dénia corridor along Line 9, and communities in the Alicante-Elche-Torrevieja south corridor.
Once completed, investors might realistically expect rent increases of 5% to 15% in directly affected neighborhoods, with biggest gains in areas currently lacking strong transport links.
You'll find our latest property market analysis about Costa Blanca here.
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What property type should I buy for renting in Costa Blanca as of 2026?
Between studios and larger units in Costa Blanca, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments typically outperform larger units on pure rental yield, but two-bedroom apartments often deliver better overall results when factoring in lower vacancy and easier tenant placement.
Studios can achieve gross yields of 6% to 7.5% (700 to 900 euros or 750 to 970 USD monthly), while two-bedroom apartments typically yield 5% to 6% (900 to 1,200 euros or 970 to 1,300 USD monthly).
Smaller units deliver higher yields because rent per square meter drops as unit size increases, so you get more income per euro invested in compact properties.
Larger units make more sense when targeting families or remote-working couples who want space and will sign longer leases, reducing turnover costs and stabilizing net yield.
What property types are in most demand in Costa Blanca as of 2026?
As of early 2026, two-bedroom apartments are the most in-demand property type for long-term rentals because they fit the widest range of tenants, from couples to small families to remote workers needing a home office.
The top three property types by tenant demand are two-bedroom apartments, followed by one-bedroom apartments in urban areas, then townhouses in family-friendly coastal suburbs.
The primary trend driving this pattern is the growth of foreign residents and digital nomads wanting comfortable space without the maintenance burden of villas or detached houses.
Large villas are currently underperforming in tenant demand, attracting seasonal interest but struggling to find year-round tenants willing to pay rents justifying high purchase prices and maintenance costs.
What unit size has the best yield per m² in Costa Blanca as of 2026?
As of early 2026, units in the 40 to 70 square meter range deliver the best gross rental yield per square meter, typically corresponding to well-designed one-bedroom and compact two-bedroom apartments.
The typical gross yield for this optimal unit size works out to roughly 13 to 15 euros per square meter monthly (14 to 16 USD), or approximately 156 to 180 euros per square meter annually.
Smaller studios under 40 square meters can have lower yield per square meter because purchase prices per square meter are often inflated, while units above 100 square meters see diminishing returns as tenants won't pay proportionally more for extra space.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Costa Blanca.
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.
What costs cut my net yield in Costa Blanca as of 2026?
What are typical property taxes and recurring local fees in Costa Blanca as of 2026?
As of early 2026, the annual IBI property tax for a typical rental apartment runs between 300 and 800 euros (320 to 860 USD), depending on the municipality and cadastral value.
Beyond IBI, landlords must budget for the annual basura fee (150 to 300 euros or 160 to 320 USD), plus community fees if in a building or urbanization (600 to 2,400 euros annually or 650 to 2,600 USD).
When combined, these recurring taxes and fees typically represent 8% to 15% of gross rental income, explaining why the gap between gross and net yields can be substantial.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Costa Blanca.
What insurance, maintenance, and annual repair costs should landlords budget in Costa Blanca right now?
Annual landlord insurance for a typical Costa Blanca rental costs between 150 and 400 euros (160 to 430 USD), with lower costs for standard apartments and higher for villas with pools.
The recommended annual maintenance and repair budget is 0.5% to 1.0% of property value, meaning 750 to 1,500 euros per year (800 to 1,600 USD) for a 150,000 euro apartment.
The repair expense most commonly catching landlords off guard is exterior damage from salt air and sun exposure, especially for coastal properties where balconies and facades deteriorate faster than expected.
Combined, landlords should budget 1,000 to 2,500 euros annually (1,080 to 2,700 USD) for insurance, maintenance, and repairs for a typical apartment, with villas requiring significantly more.
Which utilities do landlords typically pay, and what do they cost in Costa Blanca right now?
In standard long-term rentals, tenants typically pay electricity, water, gas, and internet, while landlords cover community fees, IBI property tax, building insurance, and sometimes waste collection.
If landlords include utilities in rent (common in medium-term expat rentals), monthly costs for a typical two-bedroom apartment run 100 to 200 euros (108 to 216 USD), depending on season and air conditioning use.
What does full-service property management cost, including leasing, in Costa Blanca as of 2026?
As of early 2026, full-service property management typically costs 8% to 12% of monthly rent, meaning 72 to 108 euros monthly (78 to 117 USD) for a property renting at 900 euros.
On top of ongoing management, agencies typically charge a tenant-placement fee equivalent to one month's rent, covering advertising, viewings, screening, and contract preparation.
What's a realistic vacancy buffer in Costa Blanca as of 2026?
As of early 2026, landlords should set aside approximately 5% of annual rental income as a vacancy buffer, providing cushion for typical gaps between tenants and property refresh time.
This 5% buffer translates to roughly two to three vacant weeks per year for well-located properties, though landlords in seasonal areas should budget for up to four weeks.
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.
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 - Alicante rent report | Spain's biggest housing marketplace publishes methodology-backed price indicators from a huge listings database. | We used it to anchor current asking rents per square meter in Alicante city. We converted rent-to-price into yield calculations for this core market. |
| idealista - Alicante sale report | Same large market coverage with consistent time series and stated methodology updates. | We used it to anchor current asking sale prices per square meter. We paired it with rent data to compute rent-to-price ratios. |
| idealista - Torrevieja rent report | Torrevieja is one of the Costa Blanca's biggest rental and second-home markets, tracked granularly. | We used it to estimate rent levels in a high-tourism submarket. We used it as a yield bookend comparing tourism-heavy versus city-core areas. |
| idealista - Torrevieja sale report | Same methodology-driven dataset focused on sale prices with neighborhood breakdowns. | We used it with Torrevieja rents to compute a second rent-to-price ratio. We used sub-area tables to discuss neighborhood variation. |
| idealista - Dénia rent report | Dénia is a key north Costa Blanca market where prices and seasonality differ from the south. | We used it as a north-coast comparator where prices are higher relative to long-term rents. We sanity-checked yields against the wider range. |
| idealista - Dénia sale report | Same consistent source keeping rent versus buy comparisons apples-to-apples. | We used it with Dénia rents to compute a lower-yield reference point. We used it to define what prime coastal looks like on yields. |
| idealista - methodology note | It explicitly explains the data engine behind idealista's reports and notes methodology changes. | We used it as methodological backbone for relying on idealista indicators. We used it to justify cross-city comparisons. |
| Bank of Spain - rental market paper | Spain's national central bank produces methodical, data-heavy research on housing markets. | We used it to frame how gross rental profitability is measured and why it varies by geography. We kept our numbers consistent with national concepts. |
| MIVAU - SERPAVI system | Spain's housing ministry explaining an official rent reference system and its scope. | We used it to ground discussion in official rent-data infrastructure. We used it for context and triangulation. |
| Agencia Tributaria - IRNR rates | The Spanish tax authority states applicable tax rates for non-resident income. | We used it to model realistic net yield outcomes for non-resident owners. We used it as a hard constraint for after-tax scenarios. |
| BOE - Ley 12/2023 Housing Law | Spain's official gazette publishing primary law text. | We used it to support statements about who pays certain rental-related costs. We used it as legal context for net-yield cost allocation. |
| Ayuntamiento de Alicante - IBI | The municipality's official tax and ordinance publication. | We used it to ground property tax discussion with a Costa Blanca example. We used it as a local anchor for recurring costs. |
| Ayuntamiento de Alicante - waste fee | An official municipal notice about an actual recurring household fee. | We used it to show recurring local fees go beyond IBI and affect net yield. We used it to justify including local fees in models. |
| Aena - airport expansion | Spain's main airport operator making an official project announcement. | We used it to identify demand-supportive infrastructure lifting long-run rental demand. We used it in the upcoming projects section. |
| FGV - TRAM projects | The regional rail operator's official projects page. | We used it to connect mobility upgrades to micro-market rental resilience. We identified areas where accessibility improvements matter. |
| FGV - 839m investment plan | An official operator release with headline capital expenditure figures. | We used it to support claims that transport investment is budgeted at scale. We justified project-led rent upside in select nodes. |
| RealAdvisor - management fees | A large property platform summarizing typical commission ranges and legal backdrop. | We used it to set management and leasing cost parameters with concrete ranges. We treated it as private-sector triangulation. |
| Eurostat - House Price Index | The EU's official statistics body with standard definitions across countries. | We used it to contextualize Costa Blanca inside the wider EU house-price environment. We used it as macro context for yield movements. |
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