Costa Blanca Property Market

Based on H1 (first half) 2025 Property Statistics

Eelco Dijkstra, PropertyVisibles – January 2026

The Costa Blanca – Europe’s #1 Foreign Property Destination

The Costa Blanca, encompassing Alicante province, is the undisputed capital of international property investment in Spain. It recorded more than 20,000 international property transactions in H1 2025, more than any other region in the country. In Q4 2025, Alicante province saw 42.91% of all its property transactions come from non-Spanish buyers, with key hotspots including Torrevieja, Orihuela Costa, and Guardamar in the south, and Altea, Jávea, Calpe, and Benissa in the north.

Nationwide, Spanish house prices rose 15.35% year-on-year in Q3 2025 – the strongest growth since 2006 – driven by structural supply shortages and growing domestic and international demand alike.

At a Glance: Key Economic & Market Indicators

Country	GDP Growth 2025	Unemployment	Domestic Market	Costa Blanca Role
Spain (Domestic)	+1.8%	~10%	▲ Strongly Up	Backbone of market
United Kingdom	~1.3%	~4.4%	= Stable/Soft	#1 by volume (declining)
Germany	~0%	~3.4%	▲ Recovering	#2 foreign buyer
Netherlands	~1.6%	~3.7%	▲ Strongly Up	Fastest growing buyer
Poland	~3.3%	~3.2%	▲ Strongly Up	Breakout buyer +43.7%
Belgium	~1.3%	~5.5%	= Stable	Steady, new-build focus
Sweden	~0.5–1%	~8.6%	= Stabilising	High-value, softening
Norway	~2.1%	~4%	▲ Up	High-value, confident

Spain – Domestic Buyers

GDP Growth 2025: ~1.8%
Unemployment: ~10% (highest in EU, but trending down)
Domestic Property Market: ▲ Strongly Up

Spanish domestic buyers are the backbone of the market and growing strongly. In the trailing 12 months to June 2025, total national sales reached around 700,000, up 19.7% year-on-year and the highest since 2007. Nationwide house prices rose 15.35% year-on-year in Q3 2025, the strongest growth since 2006.

Costa Blanca Relevance

Falling ECB interest rates, strong job creation in the services sector, and real wage growth above inflation have restored Spanish domestic buyer confidence. Spanish buyers are the primary market for inland towns, new urban developments, and mid-range coastal resale properties. Their strength provides a solid price floor that underpins international investment.

United Kingdom

GDP Growth 2025: ~1.3%
Unemployment: ~4.4%
Domestic Property Market: = Stable / Soft

UK house prices largely stagnated through 2025, with the average price at £270,259 in December 2025. Transactions averaged around 101,000 per month – 3% above the five-year average – but price growth remained subdued as elevated mortgage rates cooled demand. The market is broadly flat year-on-year.

Costa Blanca Relevance

The UK remains the single largest source of foreign buyers in Spain, with 5,731 transactions in H1 2025 accounting for 8.1% of all foreign sales. However, the structural trend is declining. British market share of the Spanish market has dropped from nearly 25% in 2015 to just over 8% today. On the Costa Blanca, British buyers are most concentrated in the southern stretch: Torrevieja, Orihuela Costa, and Algorfa. Post-Brexit residency friction, stamp duty changes, and a relatively weak pound are ongoing headwinds, but the sheer volume of established British demand keeps this buyer group dominant in absolute numbers.

Germany

GDP Growth 2025: ~0% (contracted in 2023 and 2024)
Unemployment: ~3.4%
Domestic Property Market: ▲ Slowly Recovering

After a severe correction, nominal house prices fell 3.94% in 2022 and a further 7.11% in 2023 – Germany’s property market entered a cautious recovery in 2025. The House Price Index rose 3.18% year-on-year in Q2 2025, the third consecutive quarter of positive annual growth, though values remain well below their 2022 peak.

Costa Blanca Relevance

Despite Germany’s weak economy, it is Spain’s second most active foreign buyer nation, with 4,756 property sales in H1 2025 (6.7% of all foreign transactions). German buyers are strongly represented on the Costa Blanca North – particularly Jávea, Altea, and Dénia – and pay an average of over €3,000/m², among the highest of any nationality. With domestic property still below peak values, many German buyers view Spanish coastal property as a superior long-term store of wealth, a trend reinforced by a tight domestic labour market that preserves purchasing power.

Netherlands

GDP Growth 2025: ~1.6%
Unemployment: ~3.7%
Domestic Property Market: ▲ Strongly Up

The Netherlands recorded annual house price growth above 10% in Q4 2024, among the highest in the EU. Chronic under-supply, strong employment, and high household wealth continue to push prices upward. This domestic capital appreciation also fuels the purchasing power available for overseas investment.

Costa Blanca Relevance

The Netherlands is the standout growth story on the Costa Blanca in 2025. Dutch buyers grew by 37% in H1 2025 compared to H1 2024, and in Q4 2025 they accounted for 6.77% of all foreign property purchases in Spain. In terms of online property search activity, Dutch users are now the single largest foreign group in Alicante province, accounting for 16.54% of all foreign listing views — ahead of Germans (10.63%) and British (10.10%). While ranked fourth nationally by completed transactions in H1 2025, the trajectory of Dutch demand on the Costa Blanca – particularly around Jávea, Moraira, and the Northern Costa Blanca – strongly suggests they are becoming the leading active buyer group in the region. Buyer profiles are typically aged 45–60, lifestyle- and retirement-driven, with strong purchasing power.

Poland

GDP Growth 2025: ~3.3% – one of the fastest in Europe
Unemployment: ~3.2% – among the lowest in the EU
Domestic Property Market: ▲ Strongly Up

Real house prices in Poland grew 14.7% in 2024, the fastest in Central and Eastern Europe, driven by EU structural funding, rapid wage growth, and strong consumer confidence. The economy is forecast to grow at 3.3% through 2025–2026, making Poland one of only three OECD nations projected to exceed the global growth average.

Costa Blanca Relevance

Poland is the breakout buyer story of the current cycle, with purchases in Spain growing by a striking 43.7% in H1 2025. Polish buyers pay above €3,000/m² on average and show a strong preference for modern new-build properties. A rapidly expanding upper-middle class, strong domestic economic confidence, and geopolitical motivations seeking a safe haven in Europe – are key drivers. Poland is now firmly in the top tier of emerging buyer nationalities on the Costa Blanca, with particular interest in Alicante city, Benidorm surroundings, and gated new-build developments.

Belgium

GDP Growth 2025: ~1.3%
Unemployment: ~5.5%
Domestic Property Market: = Stable

Belgium’s property market has been broadly flat, with real house prices close to zero movement in 2024–2025. The market reflects a mature, stable economy without the volatility seen in Germany or Sweden. Modest price appreciation continues in prime urban areas such as Brussels and Antwerp.

Costa Blanca Relevance

Belgium is a consistent mid-tier buyer, completing 2,908 transactions in H1 2025 and ranking in the top eight foreign nationalities in Spain. Belgian volumes softened slightly in H1 2025, down around 2% year-on-year. Notably, 32.39% of Belgian transactions in Spain involve newly built homes – the highest proportion of new-build preference among major buyer nationalities – making them a particularly relevant audience for property developers and off-plan projects on the Costa Blanca.

Sweden

GDP Growth 2025: ~0.5–1%
Unemployment: ~8.6%
Domestic Property Market: = Tentatively Stabilising (after decline)

Swedish house prices fell 6.31% nationally in 2023, with Stockholm and Malmö seeing sharper corrections. By 2024 the market stabilised with a modest 2% increase. In Q2 2025, prices rose just 0.7% year-on-year – one of the weakest performances in Europe – and declined 1.7% in real (inflation-adjusted) terms. Recovery is fragile.

Costa Blanca Relevance

Swedish buyers are high-value but declining in activity. They pay some of the highest average prices per square metre of any nationality in Spain – €3,295/m² – reflecting strong purchasing power when active. However, domestic housing market stress, a weak Swedish krona, and elevated unemployment are dampening overseas appetite. Purchase volumes slipped slightly in 2025. Swedish buyers tend to favour the northern Costa Blanca, particularly Calpe, Altea, and Moraira, drawn by the more upscale and quieter coastal character of that stretch.

Norway

GDP Growth 2025: ~2.1% (mainland)
Unemployment: ~4%
Domestic Property Market: ▲ Up

Norway largely avoided the steep property corrections seen in Sweden and Germany. House prices continued growing moderately in 2024–2025, supported by strong energy revenues, low unemployment, and resilient household finances. Consumer confidence is meaningfully higher than in neighbouring Sweden.

Costa Blanca Relevance

Norwegian buyers mirror the Swedish profile but with greater confidence. They average €3,292/m² in Spain – among the highest of any nationality – and a healthier domestic economy translates into more active purchasing. Preferred areas on the Costa Blanca include the northern stretch: Altea, Calpe, and Moraira. Norwegian buyers are typically high-net-worth, aged 50+, purchasing second homes or retirement properties with strong equity from an appreciating domestic market behind them.

Investment Outlook for Costa Blanca

The Costa Blanca property market presents a compelling investment case in 2025. Supply constraints are acute – planning backlogs, land scarcity in premium coastal areas, and rising construction costs mean new stock cannot keep pace with demand. Prices in core hotspots such as Jávea, Altea, Moraira, and Torrevieja are up 10–20% year-on-year, while secondary markets (Dénia surroundings, inland villages, the Mar Menor corridor) are attracting buyers priced out of primary locations.

The buyer pool is diversifying and deepening. The Netherlands and Poland are accelerating as powerful new forces, while the UK and Germany remain anchor markets by volume. Spanish domestic demand provides a strong and growing floor. Falling ECB interest rates (approaching 2% by end-2025), combined with Spain’s strong employment growth and real wage increases, create a favourable financing environment.

For developers and investors, the most attractive opportunity sits in well-designed new-build product targeted at Northern and Central European buyers – particularly Dutch, German, Polish, and Belgian nationals who over-index on new construction. Lifestyle-led developments with high energy efficiency ratings, contemporary design, and strong community amenities command consistent premiums and faster absorption.

Key risk to monitor: Spain’s ongoing political debate around foreign buyer tax increases and restrictions. The Golden Visa programme was formally ended in April 2025. No additional restrictions have been enacted, but the political climate warrants watching, particularly for non-EU buyers.

Prepared based on H1 2025 data. Sources: Spanish Land Registry (Colegio de Registradores), Spanish Notaries (Consejo General del Notariado), Idealista Research, OECD Economic Outlook, and national statistical institutes.