Costa Blanca Property Investment Guide 2025-2026

Costa Blanca Property Investment Guide 2025-2026: Complete Buyer's Analysis

Costa Blanca property investment delivers exceptional returns in 2025-2026, with Alicante province recording 14.8% price growth year-on-year and rental yields reaching 5-8% for luxury properties. This comprehensive guide covers everything international buyers need to know about purchasing property in Spain's most dynamic real estate market.

Whether you're seeking a holiday home, rental investment, or permanent relocation, Costa Blanca offers unmatched value compared to other Mediterranean destinations. With over 40% of property sales going to foreign buyers—the highest percentage in Spain—the region has established itself as Europe's premier destination for international real estate investment.

Costa Blanca Property Market Overview 2025-2026

Current Market Performance

The Costa Blanca real estate market continues its strong upward trajectory in late 2025. According to data from Spain's National Statistics Institute (INE) and CaixaBank Research:

• Price growth 2025: +14.8% in Alicante province (year-on-year)
• 2026 forecast: +5-9% continued growth, with premium areas exceeding 10%
• Average price per m²: €1,800-€2,200 (coastal areas €2,500-€4,000+)
• Transaction volume: Up 51.3% year-on-year following ECB rate cuts
• Foreign buyer share: Over 40% of all sales—Spain's highest

Premium locations including Altea Hills, Moraira, Benissa Costa, and Jávea are experiencing the strongest appreciation, with limited inventory driving competition among international buyers.

Why Costa Blanca Outperforms Other Spanish Markets

Costa Blanca consistently outperforms other Spanish coastal regions for several key reasons:

• Climate: 320+ sunny days annually, mild winters (12-18°C)
• Accessibility: Alicante Airport serves 15+ million passengers with direct flights to 150+ European cities
• Healthcare: World-class private hospitals (Quirónsalud, Vithas) with English-speaking staff
• Infrastructure: Modern motorways (AP-7, A-7), high-speed rail connections
• Value: 30-50% lower prices than comparable Costa del Sol or Balearic properties

Best Locations to Buy Property in Costa Blanca

Northern Costa Blanca: Premium Investment Zone

The stretch from Jávea through Moraira, Benissa, Calpe, and Altea represents Costa Blanca's most valuable real estate corridor. These municipalities attract affluent buyers from Belgium, Netherlands, UK, Germany, and Scandinavia.

Altea combines artistic heritage with luxury living. The iconic blue-domed church overlooks a charming old town, while Altea Hills offers modern villas with panoramic sea views. Properties here typically appreciate 8-12% annually. View our featured Altea Hills villa with 848m² and stunning Mediterranean panoramas.

Calpe offers excellent rental potential thanks to its famous Peñón de Ifach rock formation and beautiful beaches. The international community ensures year-round demand for quality rentals. Explore this Calpe villa within walking distance to beaches.

Moraira maintains strict building regulations that preserve exclusivity and support premium valuations. This is Costa Blanca's most expensive municipality, commanding prices 20-40% above regional averages.

Central Costa Blanca: Growth Potential

El Campello and Villajoyosa offer excellent value with strong appreciation potential. First-line beach properties here remain more accessible than northern alternatives while delivering comparable rental yields. This exceptional El Campello beachfront villa exemplifies the premium segment.

Southern Costa Blanca: Accessible Entry Point

Torrevieja and Orihuela Costa provide entry-level investment opportunities with 5-9% projected growth in 2026. These areas attract budget-conscious buyers and offer strong rental returns from the tourist market.

Property Types and Investment Returns

Luxury Villas: Premium Investment Performance

Luxury villas in the €1-5 million range deliver the strongest combined returns:

• Capital appreciation: 8-12% annually in premium locations
• Rental yield: 5-8% gross for well-located properties
• Peak season rates: €3,000-€15,000 per week
• Occupancy: 65-80% during April-October season

This seafront villa with three pools demonstrates how exceptional amenities command premium rental rates and buyer interest.

Apartments and Townhouses

Well-located apartments offer higher rental yields (6-9%) but lower capital appreciation (4-6%). Town center properties near beaches perform best for short-term rental strategies.

New Build vs Resale Properties

New builds attract 10% VAT but offer modern specifications, energy efficiency, and developer guarantees. Resale properties incur 10% transfer tax but provide established locations and immediate rental potential.

Costs of Buying Property in Costa Blanca

Purchase Taxes and Fees

Budget 11-15% above the purchase price for total acquisition costs:

1. Transfer Tax (ITP): 10% for resale properties
2. VAT (IVA): 10% for new builds (plus 1.5% stamp duty)
3. Legal fees: 1-2% including due diligence
4. Notary fees: 0.5-1%
5. Land registry: €400-€800
6. Mortgage costs: 1-2% if financing

Example: A €2 million villa purchase requires approximately €2.22-€2.30 million total investment including all costs.

Annual Ownership Costs

• IBI (property tax): 0.4-1.1% of cadastral value
• Community fees: €100-€500/month depending on amenities
• Non-resident income tax: 19% of 1.1% cadastral value (if not rented)
• Wealth tax: Varies by region, exemptions available

Financing Options for Foreign Buyers

Spanish Mortgages for Non-Residents

Following ECB rate cuts in 2024-2025, Spanish mortgage conditions have improved significantly:

• Euribor: Dropped from 3.6% (Jan 2024) to 2.4% (mid-2025)
• Non-resident rates: 3.5-4.5% variable, 4-5% fixed
• Loan-to-value: 60-70% for non-residents
• Terms: Up to 25 years, age restrictions apply

Major Spanish banks (Santander, BBVA, CaixaBank, Sabadell) actively lend to foreign buyers with proper documentation.

Important Update: Golden Visa Program Ended April 2025

Spain officially ended the real estate route to Golden Visa residency on April 3, 2025. The government cited housing affordability concerns, particularly in Madrid and Barcelona.

What This Means for Investors

• Property purchases no longer qualify for automatic residency rights
• Existing Golden Visa holders retain their status and renewal rights
• Alternative investment routes remain available (€1M+ financial investments)
• Non-Lucrative Visa and Digital Nomad Visa offer alternative residency paths

Impact on Costa Blanca: Market analysts report minimal impact, as most buyers purchase for lifestyle and rental returns rather than residency. The region's appeal remains strong for investors prioritizing ROI over immigration benefits.

For detailed residency options, see our complete guide to Spain residency alternatives.

The Buying Process: Step by Step

Step 1: Obtain Your NIE Number

The Número de Identificación de Extranjero (NIE) is mandatory for all property transactions. Apply at a Spanish consulate or police station in Spain. Processing takes 2-4 weeks. See our detailed NIE application guide.

Step 2: Open a Spanish Bank Account

Required for deposits, mortgage payments, utility direct debits, and receiving rental income. Most banks require NIE and proof of address.

Step 3: Engage Legal Representation

Always hire an independent Spanish property lawyer (abogado). They verify ownership, check for debts and encumbrances, review contracts, and manage the completion process. Budget 1-2% of purchase price.

Step 4: Property Search and Viewings

Work with agencies specializing in international buyers. Contact Casa Rica Estate for curated property selections matching your investment criteria.

Step 5: Reservation and Deposit

Reservation contract (€5,000-€20,000) removes property from market. Private purchase contract (Arras) follows with 10% deposit. If buyer withdraws, deposit is forfeited; if seller withdraws, they must return double.

Step 6: Completion at Notary

Final signing of Escritura Pública at a Spanish notary. Balance paid, keys handed over, ownership registered. Total process typically takes 6-12 weeks from offer acceptance.

Rental Income and Property Management

Short-Term Rental Regulations

Tourist rental licenses (VT - Vivienda Turística) are required throughout the Valencian Community. Some municipalities have imposed moratoriums on new licenses—verify availability before purchasing specifically for holiday rental income.

Mid-Term Rental Opportunity

Costa Blanca has emerged as a hotspot for mid-term rentals (1-11 months) targeting digital nomads and remote workers. Searches for "mid-term rental Costa Blanca" have doubled since 2023, offering landlords an alternative to regulated tourist rentals.

Property Management Services

Professional management typically costs 15-25% of rental income but handles guest communication, cleaning, maintenance, and key exchange. Essential for non-resident owners seeking passive income.

2026 Market Forecast and Investment Outlook

Expert Predictions

Market analysts project continued growth with moderating intensity:

• CaixaBank Research: 6.3% price growth forecast for 2026
• BBVA: 7% growth driven by supply constraints
• Industry consensus: 5-9% growth, premium locations higher
• Foreign buyer projection: Costa Blanca expected to become Spain's #1 region by foreign buyer volume in 2026, surpassing Málaga

Key Growth Drivers

• Limited new construction maintaining supply constraints
• Continued lifestyle migration from Northern Europe
• Favorable ECB rate environment boosting affordability
• Infrastructure investments (airport expansion, rail improvements)
• Growing digital nomad and remote worker community

Frequently Asked Questions

Is Costa Blanca a good property investment in 2025-2026?

Yes. Costa Blanca offers strong fundamentals: 14.8% price growth in 2025, 5-8% rental yields on luxury properties, and 5-9% growth forecast for 2026. The region attracts 40%+ foreign buyers—Spain's highest proportion—indicating sustained international demand.

How much do I need to buy property in Costa Blanca?

Entry-level apartments start around €150,000-€250,000. Quality villas with pools range €500,000-€2,000,000. Luxury beachfront properties command €2,000,000-€5,000,000+. Budget 11-15% additional for purchase costs.

Can I get residency by buying property in Spain?

No. Spain ended the Golden Visa real estate route on April 3, 2025. Property ownership no longer provides automatic residency rights. Alternative options include Non-Lucrative Visa (proof of income/savings), Digital Nomad Visa (remote workers), or financial investment routes (€1M+).

What rental yields can I expect from Costa Blanca property?

Luxury beachfront villas yield 5-8% gross annually. Modern villas with pools achieve 4-7%. Well-located apartments generate 6-9%. Peak season weekly rates range €3,000-€15,000 for premium properties.

Which Costa Blanca location offers the best investment potential?

For capital appreciation: Altea Hills, Moraira, and Benissa Costa lead with 10-12% annual growth. For rental yield: Calpe and Jávea offer strong tourist demand. For value growth: El Campello and Villajoyosa provide upside potential at accessible price points.

Do I need to speak Spanish to buy property in Costa Blanca?

No. The region is highly international with English widely spoken in real estate, legal, and banking sectors. However, official documents are in Spanish, making professional legal representation essential.

Start Your Costa Blanca Property Search

Costa Blanca's combination of lifestyle appeal, strong rental returns, and sustained capital appreciation makes it one of Europe's most compelling property investment destinations for 2025-2026.

Ready to explore Costa Blanca investment opportunities? Casa Rica Estate specializes in luxury properties across the region's most desirable locations. Contact our team for personalized guidance and access to our curated portfolio of exceptional villas and homes.

Browse all Costa Blanca properties

Data sources: INE Q3 2025, CaixaBank Research, Banco de España, Engel & Völkers Costa Blanca Market Report 2025, Spain Land Registry.