Costa Blanca Property Market in Summer 2026: Prices, Demand and Choosing the Right Area

04 August 2026

The Costa Blanca property market continues to grow, but province-wide figures for Alicante are becoming less useful for individual buyers. The differences between neighbouring areas are increasingly significant.

We have already taken a closer look at Spain’s property market in 2026 and explained why the Costa Blanca continues to stand out for value.

In Torrevieja, the average asking price has risen by more than 14% over the past year. Growth in Ciudad Quesada has almost come to a standstill. Torre de la Horadada is approaching €3,750 per square metre, while prices in Orihuela Costa are rising at a much more moderate pace.

Choosing a property simply because it is “near the sea and within budget” is no longer enough. In 2026, buyers need to pay closer attention to the purpose of the purchase, how the property will be used, its condition, the local infrastructure and whether it can legally be rented out in the future.

In this article, we look at:

International buyers continue to shape the Alicante property market
What is happening to prices in key areas
Why price growth varies even between neighbouring areas
What you can consider with a total budget of €120,000–€350,000
New-build or resale: what is happening to demand
Mortgages in 2026: budget conservatively
Buying to let: check the legal position before calculating returns
Which area suits different buying scenarios
The key takeaway: buyers need to be more selective

International buyers continue to shape the Alicante property market

Alicante remains one of Spain’s most international property markets. In the first quarter of 2026, overseas buyers accounted for 44.65% of all registered residential property purchases in the province. Their share increased by a further 1.74 percentage points in just one quarter.

By comparison, international buyers represented an average of 13.92% of property transactions across Spain. In the Valencian Community, their share reached 28.16%, the second-highest figure among Spain’s autonomous communities after the Balearic Islands. More than half of all overseas property purchases in Spain were made by European Union citizens.

This has practical implications for the Costa Blanca. The local market does not depend solely on the income of Spanish households or domestic mortgage conditions. It is also supported by buyers arriving from other countries with their own capital, selling property in their home markets or considering Spain as a destination for holidays, extended winter stays and a future relocation.

International demand is not uniform. Some buyers want an apartment near the beach that can be locked up and left empty for several months. Others are looking for a permanent home. Another group plans to use the property for part of the year and rent it out during the remaining months.

These different buying patterns are having an increasingly noticeable effect on prices in individual areas.

What is happening to prices in key areas

For comparison, we are using asking prices from June 2026, the latest month for which comparable figures are available across most of the locations covered.

For a more detailed comparison of the different locations, their infrastructure and the types of buyers they suit, see our guide to Costa Blanca areas.

In Torrevieja, the average asking price reached a record high of €2,558 per square metre. The strongest increases were recorded in El Acequión–Los Náufragos, the town centre, Nueva Torrevieja and Aguas Nuevas.

Guardamar del Segura also reached a new high, with an average asking price of €2,797 per square metre and annual growth of 15.7%. In Las Viñas, prices rose by 18.7% over the year, while growth in Guardamar Playa itself was more moderate.

In Orihuela Costa, the average price stood at €3,042 per square metre. Annual growth was more restrained at 6.8%. There are still substantial differences within the area: in Cabo Roig, for example, the average asking price rose to €3,662 per square metre.

Ciudad Quesada is at roughly the same price level, averaging €3,042 per square metre, but the annual increase was only 0.8%. Following stronger growth in previous periods, the market has entered a more stable phase.

The highest figure among the areas covered was recorded in Torre de la Horadada, where the average asking price reached €3,746 per square metre, representing annual growth of 17%. Modern residential developments and new-build properties close to the sea account for a significant proportion of the local supply, pushing average prices above those in Torrevieja and Guardamar.

For the combined Los Balcones–Los Altos–Punta Prima area, another property portal reported an average asking price of approximately €3,216 per square metre and annual growth of almost 9.6%. This figure cannot be compared directly with the other data, as the source combines several neighbourhoods. Within Punta Prima itself, the difference between older properties, modern residential developments and seafront homes can amount to hundreds of thousands of euros per property.

It is also important to remember that these figures represent asking prices rather than final sale prices. The amount ultimately agreed will depend on the condition of the property, how urgently the owner needs to sell, the documentation, floor level, orientation, views, distance from the sea and the seller’s willingness to negotiate.

Why price growth varies even between neighbouring areas

Strong annual growth does not mean that every property in an area has automatically increased in value by the same percentage.

Average prices can change because of the type of properties entering the market. For example, if more new-build homes or high-value sea-view apartments are listed for sale, the average price per square metre may rise even if ordinary resale properties have not increased sharply in price.

The southern Costa Blanca currently shows several distinct market profiles.

Torrevieja: wide choice and high transaction volume

Torrevieja remains one of the most accessible coastal locations with full urban infrastructure. The market includes older housing, refurbished apartments, modern residential developments, bungalows, townhouses and a limited selection of new-build properties.

This variety allows buyers to search across different price ranges. At the same time, well-maintained apartments near the beach with a lift and a terrace now face much stronger buyer competition than they did a few years ago.

Guardamar: limited supply close to the sea

Guardamar is smaller than Torrevieja, and part of its territory is occupied by dunes, pine forests and protected natural areas. The supply of property within walking distance of the beach is therefore physically limited.

Buyers who value a quieter environment, good beaches and a less intensely urban tourist atmosphere are often willing to pay more for the location. This supports prices even though the overall market is relatively small.

Orihuela Costa and Punta Prima: an international resort market

A significant proportion of demand in Orihuela Costa comes from international buyers. Gated residential developments with swimming pools, terraces, parking and modern layouts are particularly popular.

Prices can vary considerably between Punta Prima, Playa Flamenca, Cabo Roig and Campoamor. A seafront location, direct sea views or a well-known residential complex can create a separate premium segment that cannot be assessed using the average price for Orihuela Costa as a whole.

Ciudad Quesada: more space away from the seafront

Ciudad Quesada appeals to buyers who place greater value on space, terraces, privacy, a swimming pool and a quiet residential environment. A car is usually needed to reach the beach.

The area works well for permanent living, extended winter stays and longer visits. As it is less dependent on the limited supply of homes immediately beside the sea, price growth can be more moderate.

Torre de la Horadada: modern development and a higher entry price

Torre de la Horadada has expanded significantly through new construction. Modern apartments, penthouses and bungalows close to the beaches have pushed up the average price level.

Buyers with a limited budget often have to choose between a smaller property, a location further from the sea or a resale home. A good new-build property close to the beach is increasingly likely to exceed a mid-range budget.

What you can consider with a total budget of €120,000–€350,000

When planning a purchase, buyers need to distinguish between the property price and the total purchase budget.

When comparing properties, it is important to consider not only the floor area but also the type of home. In a separate guide, we explain the main types of property available on the Costa Blanca.

In addition to the purchase price, buyers must allow for taxes, notary and Land Registry fees, legal services and other associated costs. The tax structure differs for new-build and resale property. In the Valencian Community, the standard AJD rate for notarial documents subject to this tax is 1.4%. This rate applies to taxable events arising from 1 June 2026 onwards, although the final calculation depends on the type of transaction and the buyer’s circumstances.

A buyer with a total budget of €200,000 should therefore not search for a property priced at exactly €200,000. A sufficient amount must be reserved for purchase costs. When buying a resale property, it is also important to check the cadastral reference value, or valor de referencia, which may be used as the minimum taxable value.

Budget of €120,000–€180,000

The widest choice in this range is usually found among resale properties in Torrevieja and some residential developments around the town.

This budget may cover:

compact one- or two-bedroom apartments;
properties in older buildings;
homes further away from the seafront;
apartments requiring cosmetic renovation;
small bungalows in residential developments located further from the beach.

The choice will be considerably narrower in Guardamar, Punta Prima and Torre de la Horadada, particularly for buyers seeking a modern building, a communal swimming pool, two bedrooms and a location within walking distance of the sea.

Budget of €180,000–€250,000

This price range opens up more options in Torrevieja, Guardamar, Orihuela Costa and the areas around Ciudad Quesada.

Buyers can begin to choose between more space, better condition, a modern residential development and a location closer to the sea. However, it is still not always possible to combine all these advantages in a single property.

With new-build homes, buyers should check carefully whether the advertised price includes a parking space, storage room, furniture, appliances and any additional equipment packages.

Budget of €250,000–€350,000

This budget significantly broadens the choice.

Buyers can consider modern two-bedroom apartments, penthouses and bungalows in gated developments, townhouses and, in some inland residential areas, detached villas.

In Punta Prima and Torre de la Horadada, proximity to the seafront can still push the price above the top of this range. Direct sea views, large terraces, new construction and resort-style facilities command particularly high prices in these locations.

These price ranges are intended as a general market guide and do not guarantee the availability of a specific property. Even within the same residential complex, two apartments of the same size can differ significantly in price because of the floor level, views, orientation and condition.

New-build or resale: what is happening to demand

A total of 178,096 residential property purchases were registered in Spain in the first quarter of 2026. The overall volume was almost unchanged from the previous quarter, but there was a noticeable shift within the market: sales of new-build homes increased by 7.2%, while resale transactions fell by 2%.

For a more detailed comparison of the costs, advantages and limitations of both options, see our guide to choosing between a new-build and resale property.

These figures apply to Spain as a whole and do not directly describe every town on the Costa Blanca. Nevertheless, they show that demand for new construction remains strong despite the higher price per square metre.

New-build property is generally preferred by buyers who value:

modern building systems and installations;
energy efficiency;
a newly completed residential development;
parking and storage;
minimal work after receiving the keys;
a more straightforward process when purchasing from abroad.

Browse current new-build properties on the Costa Blanca in the Espavista catalogue.

Resale property continues to offer advantages for buyers looking for:

a lower entry price;
a completed home with no construction period;
an established neighbourhood;
the opportunity to inspect the actual building and its surroundings;
more space within the same budget;
a property closer to the sea in an already developed location.

The choice should be made after establishing the purpose of the purchase. For permanent living, the area and infrastructure may be the main priorities. For holidays, proximity to the beach and ease of maintenance may matter more. Buyers planning to use the property for short-term rentals must separately confirm whether this is legally permitted.

Mortgages in 2026: budget conservatively

Financing conditions remain relatively favourable in 2026, but the period of steadily falling interest rates has ended.

In May, the average rate on new residential mortgages in Spain was 2.98%. Around 61% of agreements were signed on a fixed-rate basis, and the average mortgage term was 25 years.

In June, the average interest rate for mortgage loans with a term of more than three years rose to 3.049%. During the same month, the European Central Bank increased its key interest rates by 0.25 percentage points and then left them unchanged in July.

For non-resident buyers, this means it is risky to base a purchase budget on the minimum rate advertised by a bank. The final terms will depend on the buyer’s country of residence, income, age, income currency, deposit and the characteristics of the property.

Espavista can help assess the likelihood of obtaining finance, prepare the required documentation and guide buyers through the mortgage application process in Spain.

Buying to let: check the legal position before calculating returns

Growth in tourist numbers does not automatically mean that a chosen apartment can legally be rented out on a short-term basis.

Since 3 April 2025, an owner wishing to begin tourist rental activity in a property governed by the horizontal property regime must first obtain approval from the owners’ association. As a general rule, approval requires a three-fifths majority of both owners and ownership shares.

The practical application of this rule has already been confirmed in decisions relating to properties in Torrevieja. If the owners’ association has not provided properly documented consent, an owner may be refused the single registration number required for short-term rentals.

Before purchasing a property for tourist rental, buyers should check:

whether local municipal regulations permit this type of use;
whether the required urban planning compatibility certificate is available;
what is stated in the community statutes;
whether approval from the owners’ association has been obtained;
whether the existing tourist rental registration remains valid;
whether the documentation can be transferred or reissued after the sale;
whether the property complies with the technical requirements;
which costs are associated with management, cleaning, utilities and taxes.

A property with valid tourist rental documentation may have additional value. However, the registration or licence number must be checked together with the registration date, the conditions under which it remains valid and the documentation held by the current owner.

Which area suits different buying scenarios

For permanent living

Torrevieja, Guardamar, Ciudad Quesada and the more residential parts of Orihuela Costa are all worth considering.

The decision should be based not only on the beaches, but also on shops, healthcare, public transport, schools, parking and what the area is actually like during the winter months.

For holidays several times a year

Apartments in Torrevieja, Punta Prima, Guardamar and Torre de la Horadada can be practical choices.

Important factors include the distance from the airport and whether the beach and restaurants can be reached on foot.

For extended winter stays or retirement

Areas with year-round infrastructure include Torrevieja, Ciudad Quesada, Guardamar and selected parts of Orihuela Costa.

Buyers should assess the property’s orientation and natural light, humidity levels, access to a lift and the distance to everyday services. An apartment that works well for a two-week summer holiday may be uncomfortable for several months during the winter.

For holidays and rental income

Coastal areas with consistent tourist demand are generally the main focus: Torrevieja, Guardamar, Punta Prima, Playa Flamenca, Cabo Roig and Torre de la Horadada.

However, choosing a property based only on the expected nightly rate is risky. The legal rental status, seasonality, management costs and actual competition within the individual development will have a greater effect on the outcome than the average reported yield for the wider area.

For preserving capital

The liquidity of the individual property should be assessed carefully. Important factors include a practical layout, a suitable floor, lift access, a terrace, parking, the condition of the building and a location that buyers can easily understand.

A strong area cannot compensate for the disadvantages of a property that is difficult to use and even harder to resell.

The key takeaway: buyers need to be more selective

The southern Costa Blanca continues to attract strong international demand, but property is gradually becoming less affordable.

Torrevieja still offers the widest choice within a mid-range budget, although prices are rising quickly. Guardamar can no longer be viewed as a low-cost alternative. Orihuela Costa and Punta Prima require a higher budget for modern developments and proximity to the sea. Ciudad Quesada suits buyers who value space and a quiet residential environment. Torre de la Horadada is becoming one of the most expensive markets on the southern part of the coast.

In 2026, buyers should begin with three questions:

How will the property be used?
What is the total budget, including purchase costs?
Which features are genuinely essential?

Once these points are clear, buyers can compare areas, new-build developments and resale homes without wasting time on properties that do not match their actual needs.

Espavista has been working in the Costa Blanca property market since 2008. We help buyers choose the right area, calculate the total purchase budget, compare new-build and resale property, carry out the necessary checks and manage the entire buying process—from the initial property search to key collection and after-sales support.

To find properties that match your budget and buying objectives, browse the current Costa Blanca listings in the Espavista catalogue or contact us for a personal consultation.