030 – 25 13 250
This is the region to invest now, why? We would like to tell you
The Costa Blanca – a region known not only for its sunny beaches and Spanish charm, but also as an attractive market for home buyers. The Costa Blanca housing market is popular and rising fast. Last year after Lindy’s surgery, it became no Apres ski in Austria, but sun in Altea. A changeover, because we were in the mood for sun on our snouts and banging down hard on the slopes. But we actually liked the winter sun. It even turned out that I (Lindy) had less pain here. And what a pleasure it was to have lunch without a jacket.
I am a bit of an alarmist. That being sick without insurance (I couldn’t get insurance, because I had been sick before I started for myself) and without a pension was scary to me. My parents were there, too. And we discussed the possibilities of investing in the region. Enjoying the house/apartment by myself in the winter and just being on the boat in the summer. We discussed what such a second home would have to comply with. Sun in winter, shade in summer. At least 3 bedrooms and two bathrooms. But a restaurant within walking distance and really nice views. What would it cost? And what would the return be? For nights I looked on Idealista. How ugly were all those pictures. Why couldn’t you find the exact location? Why was the house on it seven times. Irritating this…. It’s hard for the autistic in me to handle that.
For nights (I barely slept from the wound pain) I searched everything out. I looked at all the figures on the market, compared all the house prices like an appraiser. I was very busy. The last days of vacation we would go look at some houses and back from vacation together with my parents make a plan about the purchase.
We wouldn’t be ourselves if we didn’t come back with a house. We were standing inside. It was dark, everything was dirty. The layout was terrible. But it met all our needs. And and and it was very affordable. I felt by everything about my body this is what I want. But in Spain you can’t include a reservation of financing. So that became very quick calling, switching and bidding. We flew home knowing we had bought a house. But mennnn what bad information was provided. We had been misinformed. So it was time for us to figure everything out. Immediately in the car after the viewing I said to Gé that this was a real opportunity for us. Presenting a house well or informing your buyers really well. So simple, but seemingly complicated here. In the past year prices have risen considerably. We had a mega good deal.
Do you want to buy something and are you also scouring the Internet or maybe even ChatGPT with questions about buying a house in Spain? Then read the latest figures on the Costa Blanca housing market here. Schedule a conversation with us and we’ll take you by the hand. Saves you a lot of sleepless nights. And so you can make the best choice.
1. Top prices per sq. ft.: luxury locations continue to dominate
What are the figures of the housing market on the Costa Blanca North? The highest prices per square meter are found in the most exclusive coastal towns, what further inland saves considerably in price:
| Location | Price per m² | Annual Growth |
|---|---|---|
| Moraira | €4.053/m² | +11,7% |
| Benissa | €3.458/m² | +14,8% |
| Jávea/Xàbia | €3.437/m² | +13,2% |
| Benitachell | €3.239/m² | +6,2% |
| Calpe | €3.200/m² | +11,0% |
Moraira tops the list at €4,053 per sqm. Luxury villas with sea views and exclusive neighborhoods make this place a favorite. El Portet in particular is stunning. Here are truly the very finest homes.
Benissa is emerging. It is close to Moraira. It is high up and has spectacular views. You quickly get to beautiful coves with a bit of an Ibiza feel.
Javea/Xabia here you have different sections. L’Arenal gives a bit of Scheveningen vibes. A boulevard with several restaurants, stores where they sell air mattresses, chairs, umbrellas and beach shovels, a beautiful old center, the port area and in the mountains several places in nature where you live beautifully. Basically something for everyone. I think this is our favorite anyway.
Benitachell is close to Moraira. It is high up and in winter it can be foggy. Magnificent views, beautiful houses and in terms of price usually just a bit more favorable.
Calpe is known for rock Ifach. In Calpe, high-rise buildings alternate with cute old streets. You have here a fine sandy beach and a nice boulevard, but also winding streets with cute little squares and restaurants. Actually, there is something for everyone here. The prices of the catering establishments here are a little lower and therefore a little friendlier to your wallet.
2. Where are the biggest risers in the Costa Blanca housing market?
If you want to invest smartly, look at the places with the fastest growth or low m2 price. This is where the emerging regions emerge:
| Location | Price per m² | Annual Growth |
|---|---|---|
| Algorfa | €3.039/m² | +45,0% |
| Alcalalí | €2.706/m² | +36,8% |
| Pinoso | €1.402/m² | +32,1% |
| Rojales | €2.232/m² | +25,6% |
| La Romana | €1.209/m² | +25,4% |
The housing market on the Costa Blanca shows surprising figures. From high prices to very low prices. From declines to rapid rises. With a growth of no less than +45%, Algorfa is the absolute outlier. Here you will find plenty of new construction projects, often with a modern look and energy-saving features. But don’t stare blindly at these kinds of big price increases. These are also places where a lot of new construction is coming out of the ground. In Spain, they really see new construction as new. Not the way we see new construction in the Netherlands. In the Netherlands new construction and existing construction don’t differ that much. Here they really see it as new construction and a second-hand house.
You can live in a construction site for a long time with new construction, it often takes a long time before you are allowed to rent, and the amenities lag a bit behind. So look carefully also at the ratio of new construction prices to existing construction prices. But also look at rental prices. Is the ratio of the rental price to the price of the house good? Because the land here is relatively cheap and the prices of building a house are similar, you see that new construction prices in villages with few amenities are not very much lower than popular places. We have systems that allow us to have insights into rental prices. We like to show that to you. So you know if you’re making a good investment.
3. New construction versus used: What do you need to know?
The benefits of new construction in Spain:
- Modern construction quality: Thanks to strict EU regulations, new construction houses meet high insulation and energy standards. It is maintenance-friendly, you don’t need to renovate
- 10-year construction warranty (Seguro Decenal): This provides security against structural defects
- Popular with tenants: Modern amenities and energy-efficient systems make new construction attractive for rental.
Second-hand homes:
- Often more authentic with traditional Spanish architecture.
- Located in the center of villages or towns, while new construction projects are often built just outside the core.
- Lower entry prices, but with renovation costs.
The Spanish building quality does differ from what we are used to in the Netherlands. We were in Benijofar three years ago in a newly built house. Everything looked really super instagram-worthy at first glance. But with two real estate agents and a father who has been a contractor, we quickly noticed some small things. The kit work in Spain is often very bad. And if that’s not good, you get leaks. So are you going to be that smart-ass tenant (we were the first tenants) who says you have to have everything resealed or do you say nothing. We said it anyway because you don’t want them to have leaks that could have been prevented. But also we had rented the house with 110 m2. Dad and I are a little bit geeky autistic. The tiles were 60×60 and the house had two floors. We both saw super quickly by counting the tiles that the house was only about 65 m2. What they also often count to the living area here is for example the terrace and in this case also the roof terrace. So it’s really good to double check everything. They don’t know the NEN-2580 standard here.
As mentioned above, Spaniards see New Construction almost like a new car and a used car. Second-hand is lower quality and therefore worth less. Because there is so much space in Spain and no tight market, land is worth much less. So you pay mainly for the construction costs of such a house. In the Netherlands and especially Utrecht or Amsterdam, a large component in the price of your house is the land value.
5. Our recommendation
If you look purely at the fastest risers? Then you should get into the new construction in Algorfa, Villa Joyosa, Pinoso, or Rojales very interesting. The annual price increase of +45% in Algorfa shows the huge demand. Villa Joyosa has an increase of 17.9%. For Pinoso the increase is 25.6% and for Rojales 25.4%. You would think those increases are huge. That’s where I should be. Just like you can make huge money in Utrecht with huge increases. But as mentioned before, the land is not worth that much in Spain. Construction costs make new construction apartments expensive. Where there is a lot of new construction, prices go up tremendously. So the real estate agent tells you that there is a huge increase and the next apartments are going to be even more expensive, so actually you have an immediate return. A mega investment. But is that really the case? Because what are the rents like there? What are the investments?
We often think just a little differently than others. We prefer not to follow the herd. But prefer to think critically. A village sprung from the ground without a soul. Would you like to sit there? Or would you rather stroll through an authentic village? Where you have a cute little village market, local produce and a sweet little square? Craft stores and authentic restaurants? Or that popular seaside resort with a fine beach, luxury restaurants or just simple beach bars with the best paella? We bought ourselves a house in Pedreguer. Lower purchase costs. Top spot, super fast in Denia and Javea. Well facilities at short distance and in terms of rental price and good investment.
Where are we looking to invest now? La Sella (the golf course in Pedreguer, near Denia), Jesus Pobre, Gata de Gorgos, Lliber, Jalon, Benitachel, Denia and Javea. We are also looking at VillaJoyosa. But not new construction. How are we not looking at new construction there do you think? The new construction is beautiful. Located on the beach and affordable. Sounds great right? But it is super far from the nice cute center where you want to be. Actually lies against Benidorm. And Benidorm we really don’t like then…. And is much cheaper. Rental prices are not top compared to the investment. There is a lot of supply and that depresses the price. Prices can rise hard then, but we buy for the monthly income and not for speculation. So why in Javea and Denia. Two very expensive places? These places are super popular. Have everything most people want in a vacation. Beach, nature, stores and good restaurants. Even in winter it is busy here. This makes it good rentals all year round.
Why look at the small and unknown places? Here you can still buy real estate very cheaply. It is 15 minutes from the beach by car. Here people enjoy cycling through the mountains in the early and late season, has cute little squares and streets and you can rent out relatively well. The housing market on the Costa Blanca has great differences and great opportunities.
Conclusion: smart investment on the Costa Blanca
The Costa Blanca housing market offers opportunities for every buyer. Luxury locations such as Moraira, Javea and Calpe remain a safe choice, but those looking for growth and affordability would do well to look at places the smaller towns. Whether you choose new construction or a second-hand home, with the right guidance you’ll make an investment that pays off. Wondering what we think are the nicest places? We wrote a blog about the nicest places on the Costa Blanca. Join us on the road and search together for your dream home or investment? Schedule a meeting.
