Sales of Costa Blanca property have accelerated in 2017 and the area currently ranks as the most popular coastal region to buy in Spain.
New-build construction has returned and all signs point to a consolidation of prices along most of the coast.
Like the Costa del Sol link to Guide to the Costa del Sol property market, the Costa Blanca property market presents considerable variations in supply and prices from one resort to another.
The Costa Blanca property market
The Costa Blanca property market prior to late 2007 largely mirrored that seen on most of the Mediterranean coast in Spain.
New construction took place up and down the coast – some 45,000 properties were completed in 2007. Sales activity was frenzied and prices rose continually.
In 2008, the market started to slow down, although the bubble didn’t burst until 2009. Prices reached their lowest in 2011 and the Costa Blanca had one of the biggest problems of over-supply of new-build properties. A year later, the market began to bottom out and a timid recovery commenced.
However, it wasn’t until 2014 that the Costa Blanca property market began to show signs of a consolidated recovery.
Current market situation
The return to economic recovery in Western Europe plus strong demand from foreign buyers have led to general recuperation in the property market in most Costa Blanca resorts.
Certain areas such as Benidorm, Denia and Calpe are performing particularly well with steady price rises.
Recovery, however, has not been uniform. Other areas such as smaller resorts in the north or Torrevieja in the south continue to show price adjustment. General consensus is for this situation to change over the next year when all Costa Blanca resorts should register price increases.
Demand for Costa Blanca property is strong. Between January and June, the area registered the third highest number of sales in Spain after just Madrid and Barcelona. The sales rate of 101 properties per day in June was the highest since June 2007, the height of the property boom.
Foreign buyers tend to drive demand for Costa Blanca property and represented 40% of the market in 2016. They are mainly British, Scandinavian, Belgium and Dutch.
The Costa Blanca also has huge popularity among the Spanish who make up the majority of buyers in Benidorm and Torrevieja.
Costa Blanca property represents some of the best-value on the Spanish coast. The average square metre price of €1,092 ranks as the lowest for beach destinations in Spain.
Prices have experienced a considerable drop since their peak in 2007 and currently stand at over 40% cheaper.
According to Tinsa, one of Spain’s leading property valuation companies, average prices for new-build homes on the Costa Blanca come in at €196,000, the third cheapest on the Mediterranean coast and almost half the price of those on the Costa del Sol (€353,000).
Prices rose generally in the largest resorts. The increase of 10.9% in the first quarter of 2017 in Benidorm was one of the highest in Spain.
Prices in Denia also experienced a strong rise with an increase of almost 10%.
Frontline beach apartments (2 bedroom, 2 bathroom) range from €1,600 per square metre in the southern resorts (the price drops to €1,400 in Guardamar del Segura) to over €3,000 in Benidorm.
Most expensive areas to buy on the Costa Blanca
Benidorm has the most expensive square metre price on the Costa Blanca.
In June, properties in this popular resort reached €1,585 per square metre, although current prices remain considerably below their 2007 peak. Denia also ranks among the most expensive places for property with an average price of €1,467 a square metre.
Altea, where the property market has remained stable because of strong demand, has some of the most expensive homes on the Costa Blanca and in Spain generally.
In the Calle Alemania area within the resort, properties fetch an average price of €1.8 million.
Least expensive areas to buy on the Costa Blanca
For cheaper property on the Costa Blanca, your best bet are the southern resorts. In places like Orihuela Costa and Torrevieja, prices have fallen over the last year, although according to analysts, this situation is unlikely to last beyond 2017.
Cheaper than average properties are also available in inland towns and villages where there’s less demand.