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Will prices rise or fall in 2026? Signs to watch for on the Costa Blanca
In the following article we will analyze the key aspects of the Costa Blanca real estate market, one of the most popular tourist areas on the Mediterranean coast:
Available offer and “time to market”
Available supply and "time on the market" are two concepts that are important to understand in order to grasp the context of how prices will fluctuate on the Costa Blanca. These factors, considered together, clarify whether market demand is booming or, conversely, cooling down.
Active stock and new promotions
The first concept refers to the number of homes that are actively for sale (new construction and resale). What aspects need to be taken into account for 2026?
The total number of homes listed in the province of Alicante is more than 36,000, according to the Idealista portal.
Currently there is little availability of buildable land in coastal areas, which will hardly lead to the construction of new products.
Seen in this way, there is an imbalance between the demand for housing and the available supply.
DOM (Days on Market) and % discount at close
On the other hand, market time (DOM) measures the duration of the property sales process. That is, from the time the listing is published until the property is sold. Available data indicates that the average sale time for a home in this area is 136 days.
The closing discount refers to the percentage reduction in the price from the start of negotiations until the final sale. Given the fast pace of the market on the Costa Blanca, discount opportunities are more limited, as speed in the purchase process is crucial for securing a property.
Closing prices and m² by area
The price per square meter in the province of Alicante has been rising for some time . By May 2025, the average price stood at €2,521/m² according to the Idealista portal.
Monthly increase of 0.9%
2% quarterly increase
14% year-on-year increase
On the other hand, Bankinter forecasts that prices could increase by 4% to 8% in 2025. However, growth is expected to be more moderate in 2026 as demand stabilizes.
Likewise, not all areas of the Costa Blanca are evolving in the same way:
Benidorm : apartments in beachfront properties range from €3,000 to €3,500/m². This destination remains a safe bet and a very popular tourist spot.
Altea : Prices are around €4,100/m² in the Aleta Hills area. The town is in high demand among buyers from Northern Europe, who are attracted by its exclusivity and luxury villas.
Biar and Orba : two inland municipalities that have seen a more moderate price increase (€918/m² and €2,021/m² respectively).
Guardamar and surrounding areas:
Guardamar del Segura has an average price of €2,500 per m².
Beach apartments : €2,500/m²
Las Viñas: €2,100/m²
Detached houses and townhouses : €2,700/m²
Differential “ordered vs closed”
The difference between the advertised price and the final price is the margin between the advertised price and what is actually paid at the end of the purchase.
Rental: rents, occupancy and tourist license
Renting on the Costa Blanca is a complex scenario that depends on multiple factors:
Seasonality and average incomes
Peak season
On the Costa Blanca, peak occupancy occurs during the summer months and rents exceed €1,200 per month in areas such as Benidorm, Altea or Jávea.
Off-season
In quieter months, prices drop by 20% to 30%. However, profitability remains higher than in other Mediterranean areas.
Tourist licenses and regulation
Regulations on tourist accommodation have become stricter in recent years, with the Valencian Community regulating this activity with rigorous technical criteria. Owners in this area are focusing on medium-term rentals (from one to six months).
Construction and land costs
By 2026, the final price of housing on the Costa Blanca will depend on the cost of construction and the price of land:
Materials, labor and deadlines
The price of all these processes continues to rise, according to the National Institute of Statistics:
Price increases in cement, steel, and other materials make construction more expensive.
Update of labor agreements and salaries
Shortage of skilled labor and limited generational replacement
In summary, the works will be more expensive and the times slower.
Land availability and procedures
The housing context on the Costa Blanca is defined by two factors:
Mostly urbanized area
Slow housing requalification procedures
In areas where the process for reclassifying housing is slow, the new supply will be more limited and, consequently, prices will rise.
Scenarios 2026
Base Scenario
The new year is shaping up to be marked by strong foreign demand and limited supply. Therefore, the data suggests the market will stabilize with slight increases. Overall, BBVA Research estimates a 5.3% rise in Spanish housing prices .
Bullish Scenario
The upward price scenario for the Costa Blanca would occur if:
A currency change that favors the currency of foreign investors against the euro.
Interest rates are falling and financing is becoming cheaper
Tourism is very active and drives demand for second homes.
Under these conditions, growth could exceed the baseline range.
Bassist Stage
The assumptions for a bearish scenario in the Costa Blanca housing market are as follows:
Increase in the existing housing stock with an increase in the time they remain on the market (DOM)
Limited licenses
Cooling demand for home purchases on the Costa Blanca
How can we use these signs to make decisions?
In the Costa Blanca housing market, good planning will make all the difference for a secure purchase. These are the features you should consider:
Buyer decision tree/
- To live in or to invest in?
Living : good location
Investing : tourism and profitability
- Cash payment or mortgage?
Cash payment: process speed
Mortgage: check the conditions for non-residents
- What are the deadlines?
6-12 months: analyze current prices and limited supply
More than 24 months: observe the trend of the economic cycle
Strategy by profile
UK buyer: you should be aware of post-Brexit regulations and the GBP/EUR exchange rate
DE/NL/SE buyer: this profile usually prioritizes energy efficiency and location
Buyer with cash: the speed of your transactions is a strategic advantage
Buyer with a mortgage: seek advice for non-residents and ensure all necessary documentation is in order.
Conclusion: a dynamic market, but one that demands strategy and knowledge
Costa Blanca real estate market continues to show strength and appeal, especially for foreign buyers seeking quality of life, profitability, and legal security. However, the data reveals that supply is limited , construction costs are rising, and administrative procedures remain a challenge.
Given this context, 2026 is shaping up to be a year of moderate price stability , with slight increases in the most sought-after areas such as Guardamar del Segura, Altea, and Benidorm .
For those considering buying a home —whether to live in or to invest—, the key will be to act with planning , carefully analyze the location, and have a local real estate advisor who knows the area and the real market trends.
At Larrosa & Co. , we guide our clients through every step of the process: from property search to purchase management, with transparency and expertise.
If you're considering investing in or buying a home on the Costa Blanca, contact our team and we'll help you make the best decision.
