Costa Blanca Property Market 2025: Demand & Growth
In 2025 Spain’s property market is running hot. National data show that average house prices reached about €2,153 per square metre by September 2025, above the 2008 peak, with prices rising 12 % year‑on‑year and transaction volumes up 12 % howtobuyinspain.com. Analysts attribute this momentum to a strong economy – Spain’s GDP has been growing around 3 % annually since early 2024, powered by record‑breaking tourism, EU‑funded infrastructure projects, renewable‑energy investments and a flexible labour market theagencyre-costablancanorth.com. Mortgage approvals also surged 25 % in Q2 2025 compared with the same period in 2024, signalling robust buyer confidence theagencyre-costablancanorth.com. Although supply is tight – homes for sale were 20 % lower in Q2 2025 than a year earlier theagencyre-costablancanorth.com – the market remains “far from peaking” according to experts theagencyre-costablancanorth.com.
Alicante’s Costa Blanca epitomises this boom. In the third quarter of 2025 the province recorded 5,741 home sales to foreigners – roughly 43.3 % of all foreign purchases in Spain – edging out Malaga’s Costa del Sol surinenglish.com. Foreign demand remains resilient: purchases of second homes by non‑residents exceeded 9,100 transactions in Q3, up about 8 % year on year surinenglish.com. Alicante and Malaga together accounted for almost 36 % of foreign purchases surinenglish.com, underlining the Mediterranean coast’s dominance. Sonneil Homes attributes Costa Blanca’s leadership to its quality of life, international connectivity and diverse property stock surinenglish.com.
Alicante offers relatively affordable pricing compared with Spain’s big cities. According to a September 2025 ranking, the city’s average real‑estate price was around €1,830 per square metre – still low compared with Barcelona or Madrid – but its annual growth exceeded 13% howtobuyinspain.com. Regional data indicate that Costa Blanca home prices rose between 3 % and 5 % in the year to mid‑2025, with modern apartments in Alicante, Orihuela Costa and Calpe seeing the highest appreciation housingcostablanca.com. However, there is a chronic shortage of new construction and building land; high construction costs and a lack of skilled workers have limited supply housesinspain.com. Nationally there is a shortfall of more than 100,000 homes a year housesinspain.com, and supply of homes for sale has fallen 20 % on the Costa Blanca theagencyre-costablancanorth.com, which keeps upward pressure on prices. Market forecasts for 2025 therefore call for moderate price increases of 4‑10 % housesinspain.com.
Demand is broad‑based and international. Foreign buyers already make up over 40 % of all Costa Blanca purchases, led by British, German, Dutch and Belgian nationals and increasingly by Eastern Europeans and digital nomads housingcostablanca.com. The Netherlands, for example, saw a 13.8 % year‑on‑year increase in Spanish home purchases and is now the third‑largest source of buyers surinenglish.com. Lifestyle migrants are attracted by 300 sunny days a year, Michelin‑starred restaurants, marinas and golf courses theagencyre-costablancanorth.com. For investors, the rental market provides attractive yields: mid‑term furnished rentals (1–11 months) have seen demand surge 94 % and now generate rents around €14.50 per m² and gross yields of 5–7 % housingcostablanca.com. Buyers are increasingly favouring modern, energy‑efficient homes; renovation projects and “off‑plan” investments also offer potential, particularly in hotspots such as Jávea, Moraira, Benissa, Dénia and Altea molinovillas.com.
Looking ahead, analysts expect moderate growth of 2–4 % in most Costa Blanca submarkets, with first‑line beach properties and luxury new‑builds potentially achieving higher appreciation housingcostablanca.com. Interest rates are stabilising and credit lines are open, but strict regulation of tourist rentals means buyers should check zoning and licensing ruleshousingcostablanca.com. Despite these challenges, the fundamentals remain compelling: a strong economy, resilient international demand, limited supply and high quality of life indicate that Costa Blanca real estate will continue to reward patient buyers and investors. Acting early and seeking professional advice can help secure a foothold in one of Europe’s most dynamic property markets.
