Alicante and surrounding villages is one of the Costa Blanca’s hotspots for property investment
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With its stunning coastlines, charming villages, and almost year-round sunshine, Spain’s Costa Blanca has become a prime property destination for locals and expats alike, particularly in vibrant areas like Alicante, Benidorm, and Denia.
The Costa Blanca is a property hot spot for locals and expats due to its extensive coastlines, picture-perfect villages and nearly year-round hour sunshine hours. Many tourists and expats have been drawn to the area due to the relaxed pace of life, and plentiful amenities, catered towards both tourism and residential life.
Property prices and housing demand see upwards trend on the Costa Blanca
Property prices have indeed risen over the past year, with Alicante seeing an 8% increase since 2023. On the plus side, this is a promising sign for those buying or looking to buy and sell on the Costa Blanca as upwards trends are likely to remain consistent. Not only pricing but property availability is undergoing a boom period with new developments across the region being constructed – from modern apartments to villas and townhouses due to growing demand. In Benidorm alone, there are several luxury complexes in development complete with communal gardens and pools.
Costa Blanca offers attractive prospects for economic growth and employment stability.
For real estate investment, the rise in property reflects high demand, especially from international investors including those from the UK, Germany and Scandinavia. The price of a two-bedroom apartment in Alicante or Benidorm – both popular areas for locals and expats – has risen by 10% in the past year. A luxury villa in the Javea region can see prices of up to €1 million- these properties are more-often-than-not, high-end villas with sea views and countless extras. This is a positive reflection of the demand in the area and of the boost in investment. his raises the question: does renting in the area now offer a strong profit margin? The simple answer is: yes. Especially in high season. Property demand, price increases and property developments are all reassuring signs of a flourishing local economy. Upwards housing trends tend to be evidence of economic growth, stability and other attractive regional assets. Alicante’s popularity has seen exponential changes due its dynamic tourism industry and the subsequent job opportunities it facilitates.
Is Costa Blanca an ideal location for holiday rental?
Expert analysts confirm that the market is certainly on the up. Both locals and foreigners are keen to invest in the popular coastal area, especially for the wide range of property types to choose from – beachfront villas to cozy apartments. More and more investors are looking for the highly coveted sea views which they are willing to pay a premium for. Recently, in the high end area of Javea, a villa with infinity pool and panoramic ocean views sold for over €1 million. Benidorm and Torrevieja are experiencing a boom in holiday home sales, as the demand for holiday rental properties is becoming a highly profitable sector, despite new national regulations on short term and tourist rentals. Designers are increasingly focused on sustainability, integrating energy-efficient technologies, green spaces, and recycled materials into their projects. This approach aligns closely with the region’s commitment to environmental conservation and appeals to buyers who prioritize eco-friendly living. Experts note that Costa Blanca’s real estate market is not only thriving but also evolving rapidly to meet the rising demand for environmentally responsible housing.
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