Located in the province of Alicante, in the Region of Valencia, the Costa Blanca is much more than just a tourist destination. With more than 200 kilometres of coastline bathed by the Mediterranean Sea, this region has established itself in recent years as one of the main centres of real estate investment in Spain. Its combination of exceptional climate, good infrastructure, quality of life and sustained growth in the real estate and tourism sectors make the Costa Blanca a very attractive opportunity for national and international investors.
A dynamic and expanding property market
The Costa Blanca has shown remarkable resilience and dynamism within the Spanish real estate market. According to data from the Spanish Association of Registrars, in 2023 the province of Alicante was the third with the highest number of sales and purchases, exceeding 45,000 transactions per year. This upward trend responds to both local buyer interest and growing international demand.
The average price of property in areas such as Altea, Jávea, Moraira and Benidorm has increased by between 6% and 10% in the last 12 months, and in some prime locations it has even surpassed the €5,000/m² barrier. In general terms, the growth in property values on the Costa Blanca is above the national average.
In addition, the construction sector has seen a post-pandemic resurgence, with a 12% increase in new building permits during 2023. Local and international developers are betting on new developments aimed at both end buyers and investors interested in holiday and mid-term rentals.
A dynamic and expanding property market
The boom in tourism has significantly boosted the holiday rental market. According to a report by Idealista, the gross profitability of holiday rentals in coastal towns such as Torrevieja, Santa Pola or Calpe can reach 7-8% per year, far exceeding the average in other Spanish regions.
This translates into an excellent opportunity for small and medium-sized investors looking for a stable passive income. Many foreign buyers purchase homes for their personal use for a few months and rent them out for the rest of the year, with an average occupancy rate of 70% in high season and between 30% and 50% the rest of the year, thanks to the mild climate that allows for a longer tourist season than in other European destinations.
Consolidated and growing foreign investment
The province of Alicante leads the national ranking of home purchases by foreigners. In the fourth quarter of 2023, 44.43% of the homes sold in the province were purchased by non-Spanish citizens, according to the Ministry of Transport, Mobility and Urban Agenda.
British, French, German, German, Belgian and Dutch buyers lead this demand, motivated by the climate, good air connectivity (Alicante-Elche airport has more than 110 direct destinations) and prices that are still competitive compared to other European coasts.
The volume of foreign real estate investment in the Costa Blanca exceeded 3,500 million euros in 2023, reflecting the strength and confidence generated by this market on the international scene.
Tourism in constant growth
Tourism continues to be a key driver of the Costa Blanca’s economy. In 2023, more than 16.7 million overnight stays were recorded in hotel accommodation in the province, approaching pre-pandemic record figures. In addition, international tourism continues to recover strongly, with more than 6 million foreign visitors in the first 10 months of the year.
Towns such as Benidorm, Dénia, Jávea or Albir have diversified their tourist offer with sporting, cultural and gastronomic events that attract more varied profiles throughout the year. This continuous growth guarantees a constant flow of visitors, which strengthens the holiday rental market and the demand for complementary services.
Modern infrastructure and good connectivity
Another major attraction of the Costa Blanca is its modern and well-developed infrastructure. Alicante-Elche Miguel Hernández Airport is one of the five busiest airports in Spain and has reached 15 million passengers per year. This facilitates a seamless connection with the rest of Europe, which is particularly attractive to the international buyer.
The region also has a well-maintained road and motorway network, efficient public transport and quality health services, both public and private. In addition, investments in infrastructure continue, including improvements to marinas, commercial areas and sustainable urban development.
Blue flag beaches, natural parks such as Serra Gelada or Montgó, a wide range of golf courses, sports marinas and charming villages such as Altea or Guadalest complement a vital offer that combines wellbeing, safety and culture.
The Costa Blanca represents a solid investment opportunity, whether as a property for investment, holiday rental or as a second home. Statistics support the sustained growth of the market, the strong international presence, the high profitability and the attractive lifestyle offered by this region.
