Spain-Infos March: The state of the market in the Costa Blanca (Source: BELLEVUE issue 2/24)


Europe's biggest real estate magazine Bellevue is once again devoting a special report to the Costa Blanca this spring (the Mallorca special report will follow at the beginning of summer, for all island lovers, to be continued...). In what follows, I refer to the research and text, slightly modified, of the author, Dr. Gerald Paschen, whom I would like to thank!

Whether it's a simple terraced house or an architecturally exceptional villa, the Costa Blanca offers not only Mediterranean quality of life and an exceptional climate, but also second homes in all their forms.

For years, the proportion of buyers from outside Spain has been higher in the Costa Blanca than in any other Spanish province. Most recently, it has reached the incredible figure of 43% (land registry data). Neither the Costa del Sol (33.5%), the Balearic Islands (33%) nor the Canary Islands (29%) can keep up. On the coast to the north and south of Alicante, there are second homes to suit virtually every budget. Prices range from €60,000 to €8 million.

The Costa Blanca stretches for over 200 kilometers, from Dénia to Pilar de la Horadada, on the Mar Menor, the largest lagoon in the Mediterranean.

It offers everything that makes for Mediterranean quality of life: a warm winter climate, varied coastal landscapes, gastronomy ranging from simple to Michelin-starred, dream beaches, festive life and tranquil retreats. The mix of nationalities not only creates an international ambience, but also provides security for real estate investments, as you are not solely dependent on the economic situation in one or two European countries (in addition to buyers from all over Europe, overseas clients are also increasingly investing). Currently, more and more Eastern Europeans, such as Poles, Ukrainians and Balts, are joining regular buyers from the UK, Belgium, the Netherlands, Scandinavia, France and Germany. And, of course, Spaniards, mainly from Madrid and the rainy north-west coast.

A moderate increase in prices, unlike in many other regions (Ibiza and Mallorca), ensures that demand remains high. Building plots in prime locations have been in short supply for several years.

In the second half of last year, the market cooled somewhat, although prices continued to rise. Over the year, property prices in the province of Alicante rose by 7.8%.

The Costa Blanca can still score points with good value for money in all market segments. The most expensive properties are concentrated in the northern part of the Costa Blanca. Mountains, beaches, bays and steep cliffs form one of Spain's most beautiful stretches of coastline, ideal for grand living with sea views and panoramic vistas. The best selection of luxury villas can be found in locations such as Dénia (Las Rotas district), Jávea (Cap San Antonio and Portitxol in Granadella), Moraira, Benissa/Calpe (Les Basetes) and Altea. "If you're looking for a villa with sea views, you'll need to budget at least 1.5 million euros," explains real estate agent Julia Arp, who exclusively markets luxury properties in prime locations. Most of the high-end villas on offer are priced between one and three million euros. In this segment, there's virtually nothing below 500,000 euros.

Generally speaking, villa prices have fallen slightly in recent months, as international demand remains high. Given the price levels in the best locations, people are increasingly looking elsewhere, as those who want to build a new home in the north have to reach into their pockets to secure a building plot in the absolute best locations of Jávea or Moraira. The obligatory 1,000 square metre plot costs around one million euros (1,000 euros per square metre). In second-rate locations, an additional 400,000 to 500,000 euros is required for the building plot. Pure construction costs are no less than 2,000 euros per square meter. A new villa completed in a B location therefore costs around 1.3 million euros.

Top-of-the-range is also the for architecture and furnishings: clean lines, large glass facades, light-filled rooms, relaxation areas, state-of-the-art technology, infinity pools, saunas, Jacuzzis, suites with sea views. In addition to contemporary new builds, the coast also boasts many more traditional villas, built in the classic Mediterranean style. Renovating them or demolishing them to build a new one is a popular option. Generally speaking, the structure of villas on the northern Costa Blanca caters for all tastes, it's all in the mix.

South of Altea, the tourist stronghold of Benidorm continues to offer a wide range of vacation properties, with a predominance of apartments. In addition to the two long sandy beaches and the promenade, the town's most famous trademark is the skyline of skyscrapers, which comes alive 365 days a year. Luxury apartments and penthouses range from €350,000 to €1 million, but there are also recommended apartments starting at €200,000. If you don't have high expectations, you can even get in for less than 100,000 euros.

The southern part of the Costa Blanca is another world: a flat landscape, miles of natural beaches and lagoons. Development is characterized by two and three storey apartment complexes and terraced houses, some of which stretch far inland. The most important agglomerations are the towns of Torrevieja and, a little further south, Orihuela-Costa. "A decent new apartment, well located and close to the beach, is no longer available for less than 300,000 euros", says real estate agent Jan Hannemann of Su Casita. On the other hand, more affordable properties are currently very much in demand: these include apartments and small terraced houses costing between €65,000 and €100,000 and mostly located in older urbanizations dating from the 1980s and 1990s.

Another discovery in the second-home market, Alicante, the country's largest city, with a population of 350,000. While major Mediterranean cities such as Valencia and Malaga have been booming for some time, the Costa Blanca metropolis Alicante is also becoming increasingly attractive to tourists and second-home buyers. The marina, the downtown beach, the excellent gastronomy, the various cultural institutions and museums, the university and the international atmosphere are increasingly attracting buyers. The 250,000 to 300,000 euros cost of a new apartment can prove to be a good investment in the future.

We invite you to discover our selection of properties in a wide range of price categories and locations.

Of course, you'll always find other interesting properties on our website

Or you can call us on +34 966 790 012 and ask to speak with Dennis, our English-speaking advisor.

Best regards,

Jan Hannemann and the Su Casita team