The Costa Blanca, in the province of Alicante, is not only known for its scenic beauty and privileged climate, but also for being one of the most dynamic and profitable areas to invest in real estate in Spain. Thanks to its combination of international tourism, sustained growth in the property market and high rental yields, many investors consider it a safe bet. But which are the best places within this region to get the best return on your investment? Here we take a look at the five most promising locations on the Costa Blanca.
Alicante city: capital on the rise
Alicante is much more than a transient city for tourists: it has become a powerful pole of attraction for investors and digital nomads. With a population of over 337,000 inhabitants and a modern urban infrastructure, Alicante combines economic activity with Mediterranean quality of life.
Average residential rental yield: 6.5%.
Average house price (2024): 1,860 €/m².
Foreign investment: more than 30% of purchases were by non-residents (Idealista)
In addition, the city is home to universities, innovation centres, technology start-ups and has a direct connection to the international airport. The areas of San Juan, Playa del Postiguet and the historic centre are particularly attractive for tourist investment.
Benidorm: guaranteed profitability
Benidorm is, without a doubt, one of the most popular places on the Costa Blanca. Known as the ‘Manhattan of the Mediterranean’ because of its skyline, this city concentrates an impressive hotel and leisure offer that attracts millions of tourists every year.
More than 10 million overnight stays by 2023
Vacation rental profitability: between 7% and 9%.
Average house price: 2,500 €/m².
Thanks to its constant demand, Benidorm is ideal for those looking for a quick return on their investment through holiday rentals. Areas such as Levante and Poniente are particularly sought after.
Jávea (Xàbia): exclusivity and added value
Jávea is one of the jewels of the Costa Blanca North. Its profile is more exclusive, with a large presence of foreign buyers with high purchasing power, especially from Northern Europe.
Average house price: 3,200 €/m².
More than 55% of buyers are foreigners
Investment profile: luxury second homes and premium long term rentals
The areas of Arenal, Portichol and El Montgó concentrate villas, luxury flats and properties with sea views. Although the entry ticket is higher, the medium-term capital gains are higher than the regional average.
Torrevieja: opportunity for investors with smaller budgets
Torrevieja represents an affordable yet highly profitable option. Very popular with Brits, Nordics and Russians, it is ideal for those looking to invest on medium to low budgets without compromising on profitability.
Average house price: 1,460 €/m².
Profitability of tourist rentals: between 6% and 8%.
More than 60% of buyers are foreigners
In addition to its good connectivity and wide range of services, it is in full urban revaluation, with new developments and an upturn in demand in areas such as La Mata and Punta Prima.
Altea: tranquillity and international appeal
Altea stands out for its bohemian character, its white old town and its natural environment. It is one of the most popular places for artists, European retirees and lovers of stylish tranquillity.
Average house price: 2,900 €/m².
Buyer profile: upper-middle level European
Estimated return: 5.5% on medium and long term rentals
Although its pace is more leisurely, Altea offers stability, a smooth market and unique properties with sea views or nestled in the picturesque old town.
From the accessibility of Torrevieja to the exclusivity of Jávea, the dynamism of Benidorm and Alicante or the charm of Altea, the Costa Blanca continues to position itself as one of the most sought-after destinations for real estate investment in Europe.
