Costa Blanca Property Market 2026: Prices, Trends & Forecast
Market Report · April 2026 Costa Blanca Property Market […]
Costa Blanca Property Market 2026:
Prices, Trends & Forecast
Where prices stand today, what drove them there, and what the data says about the next 12–24 months.
The Costa Blanca property market has outperformed almost every forecast made for it in 2024 and 2025. Prices in Alicante province rose 13–14.8% in 2025 alone, on top of 11.4% in 2024. The question buyers are asking now is not whether the market is strong, but whether the best buying window has already passed. The data suggests it has not.
This report, updated April 2026, covers the current price landscape across the Costa Blanca South, the structural drivers of demand, the areas showing the strongest momentum, and a frank assessment of what the next 12–24 months are likely to bring. Whether you are a first-time buyer or an investor, this is the context you need.
How we got here: three years of exceptional growth
The Costa Blanca’s recent price trajectory needs context. The market has not simply inflated at random; it has repriced upward in response to genuine structural demand that has exceeded supply over the last three years.
Year-on-year price growth — Alicante Province
2022
2023
2024
2025
2026 ↗
The 2026 forecast of 5–7% growth represents a healthy moderation from peak rates, not a reversal. Forecasts from banks and market analysts point to continued positive growth, supported by supply constraints and sustained international demand.
Current prices: area by area
Prices vary significantly across the Costa Blanca South. This table summarises the key areas most relevant to Sunset Homes buyers.
| Area | Avg. price / m² 2026 | 2025 change | Best suited to |
|---|---|---|---|
| Torrevieja | €2,200–€2,600 | +14% | Investors, first-time buyers, large expat community |
| Punta Prima | €2,400–€3,000 | +15% | Beach buyers, holiday rentals, premium apartments |
| Orihuela Costa | €2,800–€3,500 | +12–13% | Golf, new builds, upmarket lifestyle |
| Pilar de la Horadada | €1,800–€2,800 | +15% | Permanent residents, quality of life, villas and townhouses |
| Los Alcázares | €1,500–€2,200 | +10% | Golf, Mar Menor, balanced lifestyle and value |
| Lo Pagán / San Pedro | €1,200–€1,800 | +9% | Value investors, wellness tourism, authentic Spain |
| Guardamar del Segura | €1,600–€2,400 | +11% | Beach buyers, families, permanent residents |
Micro-markets to watch in 2026
Not all areas of the Costa Blanca South are performing in the same way. These are the micro-markets showing the most interesting dynamics right now.
Punta Prima — Torrevieja
+15% YoY · Strong yield
Beach proximity, strong summer rental demand, and a year-round tenant pool. Resale stock is limited and competition remains high.
Orihuela Costa Corridor
+12–13% YoY · New-build activity
La Zenia, Villamartin, and Campoamor concentrate modern developments, golf, pools, and international services. Premium pricing, but strong fundamentals.
Guardamar del Segura
+11% YoY · Good value near beach
Often overlooked by buyers focused on Torrevieja. Guardamar offers direct beach access, pine forest surroundings, and lower prices than Orihuela Costa.
Pilar de la Horadada
+15% YoY · Lifestyle premium
One of the strongest lifestyle markets on the coast. Low density, tranquillity, and quality beaches are driving permanent residential demand.
What is driving demand in 2026
Understanding why the market is moving helps buyers see whether the fundamentals are real or purely speculative.
Northern European Buyers
Dutch, Belgian, Scandinavian, and German buyers have increasing weight in Alicante. Lifestyle migration is the dominant trend.
British Buyers
Despite Brexit, Torrevieja still has a very large British community, and demand remains strong, especially in the retirement segment.
Remote Workers and Digital Nomads
The digital nomad visa has created a new buyer and renter profile: younger, higher-income, and active year-round.
Falling EURIBOR
Improving mortgage conditions are bringing back buyers who paused during the rate-hike cycle.
Supply Constraint
Prime coastal land is increasingly scarce, and planning approvals are not moving fast enough to meet demand.
Alicante Airport Growth
Alicante-Elche continues expanding routes across Europe, reinforcing the region’s appeal for living and investing.
The 2026–2027 forecast: what to expect
| Factor | 2026 outlook | Why |
|---|---|---|
| Overall growth | +5–7% | Moderation from the 2025 peak, but supported by structural demand and limited supply. |
| Torrevieja / Punta Prima | +6–8% | High demand, low vacancy, and a strong rental market. |
| Orihuela Costa | +5–7% | New builds bring fresh supply, but international demand supports pricing. |
| Pilar de la Horadada | +7–9% | Relative value remains versus Orihuela Costa, with growing permanent-resident demand. |
| Rental market | Strong | Tourism remains strong, winter letting is growing, and licences are increasingly valuable. |
| Mortgage conditions | Improving | Better rates support buyer affordability. |
| Main risk | Tourist licence regulation | New licences may become harder to obtain, increasing the premium for licence-ready properties. |
What this market means in practice
For lifestyle buyers
If you are buying for personal use, a second home, or retirement, the context is reassuring. The asset is likely to hold value, and the lifestyle fundamentals — climate, healthcare, community, and connectivity — remain strong.
For rental investors
The market rewards precision. A well-located apartment in Punta Prima with an active tourist licence is not the same investment as a villa far from the coast without a licence. Model net yield, not just gross yield.
For budget-conscious buyers
Areas such as Lo Pagán, Los Alcázares, and Guardamar still offer entry-level pricing with coastal access. They represent some of the best remaining value, but the window is narrowing. Browse our resale properties to see what is currently available.
- Properties within walking distance of the beach sell quickly and command a growing premium
- Tourist-licenced properties are increasingly valued above unlicenced equivalents
- New-build prices are usually less negotiable; resale prices may have 3%–8% flexibility
- Mortgage pre-approval before an inspection trip improves your negotiating position
- The €150,000–€300,000 price range is highly competitive
Frequently Asked Questions
Has the Costa Blanca market peaked?
Based on current data and institutional forecasts, no. The 2025 growth rate was exceptional and is moderating in 2026, but the structural drivers remain active: limited supply, international demand, tourism, and improving mortgage conditions.
Is the Costa Blanca South cheaper than the Costa del Sol?
Yes, significantly. Marbella and prime Málaga areas are much more expensive. The Costa Blanca South still offers Mediterranean lifestyle at more rational price levels.
Should I buy now or wait for a correction?
Timing the market is difficult. What is clear is that prices are rising, mortgage conditions are improving, and well-located stock sells quickly. The key is buying the right property at the right price.
How do I know whether a specific property is fairly priced?
For resale properties, an independent valuation can help. A local team with live market knowledge can also advise before you make an offer.
Planning to Buy on the Costa Blanca South in 2026?
Our team works with real price, availability, and rental-performance data in the key areas. No generic advice: specific guidance for your budget and goals.
