Costa Blanca South continues to be a prime destination for property buyers and investors, offering sun-drenched beaches, vibrant communities, and a Mediterranean lifestyle. As we move into Spring/Summer 2025, the region’s property market showcases notable trends in pricing, demand, and investment opportunities. This update provides insights into current market dynamics, including property prices, buyer demographics, and emerging investment hotspots.
Key Market Trends in Costa Blanca South (Spring/Summer 2025)
Stable Growth in Coastal Towns
Coastal towns like Torrevieja, Orihuela Costa and Guardamar del Segura are experiencing steady growth. Torrevieja remains one of the most affordable coastal towns in Alicante province, with prices estimated to be around €2,200/m² in mid-2025, despite its size and popularity. Orihuela Costa benefits from its reputation as a hub for international residents and retirees, with demand bolstered by a mix of affordable traditional housing and new luxury developments.
Impact of Foreign Buyers in Q2 2025
Out of 637,000 transactions registered in 2024, Foreign nationals purchased 93,000 homes in Spain. Notably, Norwegians have overtaken the British in property purchases, reflecting a shift in buyer nationality post-Brexit and the COVID era.
New-Build vs Resale Market
New-build homes in Spain now cost 44% more than resale homes on average, with new-build property prices surging by 7.6% in 2024. This price gap highlights the rising popularity of off-plan properties, offering modern amenities and energy efficiency, despite the higher costs compared to older homes.
Current Average Property Prices by Area
Orihuela Costa
- Apartments: Approximately €2,726/m².
- Villas: €3,651/m² though prices vary greatly based on location and amenities, with new luxury developments commanding higher prices and of course the number of bedrooms.
Torrevieja
- Apartments: Around €2,200/m², making it one of the most affordable coastal towns in the region
- Villas: €2,395/m² Again, prices vary significantly, with options available for various budgets.
Guardamar del Segura & Pilar de la Horadada
- Beachfront Properties: €2,400-€4,500 /m² – Premium prices due to proximity to the sea and modern amenities.
- Inland Properties: €1,500-€3,200 /m² – These properties offer better value, appealing to buyers seeking affordability without sacrificing quality of life.
Rental Market Outlook for Summer 2025
The rental market on the Costa Blanca properties continues its upward trend, with prices increasing by 11.7% year-on-year in January. Short-term rentals in tourist zones yield higher returns, while long-term rentals remain stable, catering to digital nomads and remote workers. Holiday rental licensing updates may impact the availability and regulation of short-term rentals, influencing investor strategies.
Investor Sentiment and Opportunities
What’s Driving Investment in 2025?
Several factors contribute to the positive investor sentiment in Costa Blanca South:
- Infrastructure Upgrades: Improved transportation and amenities enhance the region’s appeal.
- Digital Nomads: The rise of remote work attracts professionals seeking a Mediterranean lifestyle.
- Climate Refugees: Individuals from regions affected by extreme weather conditions find Costa Blanca’s climate desirable.
Where Smart Money Is Going
Up-and-coming towns like Finestrat and Polop offer affordable new-build villas, with prices ranging from €1,500 to €2,800 per m². These areas are booming with modern developments and great rental potential, making them attractive to mid-budget investors.
Challenges and Risks to Watch
The outlook for Costa Blanca South remains positive, but as with any property market, it’s wise to stay informed about potential challenges. Being aware of upcoming changes and market pressures allows buyers and investors to make confident, well-prepared decisions while staying ahead of the curve.
- Regulatory Changes: Potential new taxes on foreign buyers and stricter rental laws could impact investment returns.
- Exchange Rate Volatility: Fluctuations in currency exchange rates may affect purchasing power for international buyers.
- Inflationary Pressure on Build Costs: Rising construction costs could influence property prices and development timelines.
Outlook for the Rest of 2025
As we move into the latter half of 2025, the Costa Blanca South property market is expected to maintain its momentum. Buyer and seller confidence remains high, driven by stable economic conditions and sustained demand. While challenges exist, the region’s appeal to a diverse range of buyers suggests continued growth and investment opportunities.
Costa Blanca South’s property market in Spring/Summer 2025 showcases a dynamic landscape with stable growth, evolving buyer demographics, and promising investment prospects. Whether you’re a prospective buyer, seller or investor, staying informed about market trends and developments is crucial for making strategic decisions in this vibrant region.
At 5 Real Estate, we help buyers, sellers and investors navigate the Costa Blanca South market with confidence, clarity and no commission surprises. Whether you’re looking to make your next move or maximise your property’s value, our fixed-fee model puts you in control.
