Costa Blanca real estate market overview

The real estate market on Costa Blanca continues to attract the attention of both local and international buyers, thanks to its unique climate, convenient location, and wide range of properties. The region enjoys stable demand for housing and promising investment opportunities. In 2023, the market demonstrated moderate but steady growth, making it one of the most appealing areas in Spain. Let’s take a closer look at the key aspects and trends characterizing this region.
Current Situation in the Costa Blanca Real Estate Market
Demand for real estate on Costa Blanca remains consistently high. This can be attributed to a combination of internal and external factors, such as favorable weather conditions with more than 300 sunny days a year, developed infrastructure, an accessible healthcare system, and attractive conditions for foreign property buyers.
1. Growing Interest from International Buyers: Costa Blanca has traditionally attracted investors from the UK, Germany, France, the Netherlands, and Scandinavian countries. Additionally, interest from buyers in Eastern Europe and Russia has been growing. The mild climate, affordable property prices, and high quality of life make the region an ideal destination for both permanent living and vacationing.
2. Price Dynamics: The average housing prices in the region have shown an annual increase of 5–7%. Property prices vary depending on the area, type of property, and proximity to the sea. For example, apartments in Torrevieja can be purchased starting at €60,000, while luxury villas in prestigious areas like Altea or Javea often cost several million euros. This wide price range ensures the market is accessible to various categories of buyers.
3. Popular Property Types:
Apartments: An excellent choice for those looking for compact holiday homes. Apartments in modern complexes with pools, gardens, and security are especially in demand among tourists and families.
Villas and Houses: These properties are popular among those seeking spacious homes for permanent living. Most villas feature swimming pools, terraces, and gardens, making them ideal for comfortable living.
 Commercial Properties: There is growing demand for hotels, cafes, restaurants, and other commercial facilities as the region continues to develop as a tourist destination.
Investment Opportunities in the Region
Real estate on Costa Blanca offers excellent investment opportunities. The region’s tourist popularity allows property owners to count on high rental income. The average rental yield ranges from 4% to 7% annually. Apartments in popular tourist areas like Benidorm and Alicante are particularly attractive in this regard.
Additionally, purchasing property in Spain worth €500,000 or more provides an opportunity to obtain a residence permit under the “Golden Visa” program. This makes the region even more appealing to international investors planning not only to invest but also to use the property for personal living.
Property Purchase Process
For foreign citizens, the process of purchasing property in Spain is relatively straightforward, but it requires consideration of certain nuances:
1. Obtaining an NIE: The Foreigner Identification Number (NIE) is required for all financial transactions, including property purchases.
2. Legal Assistance: It is recommended to use the services of a lawyer who can verify the legal status of the property, draft contracts, and oversee the transaction.
3. Financial Aspects:
The property transfer tax (ITP) ranges from 8% to 10% of the property’s value.
Annual expenses include property tax (IBI) and utility bills.
4. Mortgage Financing: Spanish banks offer favorable conditions for foreign buyers. The average mortgage interest rates start at 3.25% annually. The maximum loan amount can reach 70% of the property’s value.
Key Advantages of Living on Costa Blanca
1. Excellent Climate: The mild Mediterranean climate makes the region comfortable for living year-round. Winter temperatures rarely drop below 10°C, while summer averages 25–30°C.
2. Developed Infrastructure: The region has excellent transport accessibility, including international airports in Alicante and Valencia. Additionally, it offers a well-developed road network, rail connections, and public transport.
3. High Quality of Life: Costa Blanca provides quality healthcare services, numerous shops, restaurants, cultural events, and sports activities.
4. Leisure Opportunities: Picturesque beaches, diverse landscapes, rich history, and culture make the region an ideal place for recreation. Outdoor enthusiasts will appreciate the opportunities for golf, water sports, hiking, and cycling.
Real Estate Market Outlook for Costa Blanca
Experts predict that the Costa Blanca real estate market will continue to grow. Demand for housing is expected to remain high due to the region’s stable economic situation, its popularity among tourists, and the increasing number of international buyers. Infrastructure development, including improved transport accessibility and the construction of new residential complexes, will further strengthen the region’s position in the real estate market.
A particularly promising direction is the construction of modern residential complexes focusing on sustainability and environmental friendliness. Such projects attract younger buyers and families seeking comfortable housing with high-quality standards.
Conclusion
Costa Blanca is one of the most attractive regions in Spain for real estate investment. Its popularity is driven by the combination of a unique climate, developed infrastructure, affordable housing, and promising investment opportunities. Whether you are looking for a home for permanent living, a vacation spot, or an investment property, the Costa Blanca real estate market offers a wide range of options to meet diverse needs.