Periodic reports on the North Costa Blanca property market (Alicante province, Valencia)
This page offers data-driven reports on the North Costa Blanca property market, consolidating key data from public sources to highlight the latest trends and developments. Illustrated with charts and infographics, these reports provide critical insights into the North Costa Blanca residential real estate market, with a focus on flagship municipalities such as Calpe, Denia, Javea, and Benidorm. These reports are written for foreign investors, property buyers, vendors, professionals, and journalists looking for insight into the Alicante province / North Costa Blanca property market to help inform big decisions with important financial consequences.
North Costa Blanca property market overview
The North Costa Blanca is a prime destination for international property buyers looking for second homes, holiday properties, or investment opportunities. Renowned for its picturesque coastline, Mediterranean lifestyle, and welcoming expatriate community, the region attracts a significant share of Spain’s foreign property transactions. As one of the most dynamic housing markets in the country, a focused report on the North Costa Blanca property market is invaluable for anyone with an interest in this region.
Located in Alicante province, Valencia, the North Costa Blanca stretches from Calpe to Denia and beyond. Known for its wide range of housing options, from high-end villas to charming coastal apartments, the market offers unique opportunities and challenges worth analysing. Key municipalities like Calpe, Denia, Javea, and Benidorm are among the most sought-after areas for buyers and investors.
The reports cover a wide range of topics to provide a comprehensive understanding of the market, including:
- Home sales across Alicante province and key municipalities.
- Foreign buyers: market share, residency status, and second-home investments.
- New-build properties: sales, pricing trends, and index data.
- House prices: general trends and specific insights into flagship municipalities like Denia and Javea.
- Mortgage lending: base rates, borrowing costs, and their influence on the market.
- Housing starts and key factors affecting supply and demand.
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2024 Full Year
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2024 H1
The first half of 2024
Sales performance
In the first half of 2024, there were 29,366 home sales in the North Costa Blanca housing market, marking a 6% year-on-year increase (Fig. 1-1). This figure represents a 35% rise compared to the ten-year average and a nearly 90% increase over ten years, underlining the market’s robust long-term growth.
There were 14,961 home sales involving buyers from abroad, representing a year-on-year increase of 1%. Compared to the ten-year average, this marks a growth of 38%, and over the decade, sales have risen by 88%. By residency status, these transactions included 4,692 foreigners living in Spain (expats) and 10,269 foreign non-residents (FNR) purchasing second homes and investment properties (Fig. 1-2). The year-on-year change for expat buyers was a decline of 1%, while FNR purchases grew by 2%. Over ten years, purchases by expats have increased by 107%, while those by FNR buyers rose by 80%.
The market share of foreign buyers (FMS) in this area was 51% (Fig. 1-3), down from 54% in the same period a year earlier and below the ten-year high of 54%.
New-build sales saw a notable surge, with 3,217 transactions, a 27% increase year-on-year and a 67% growth over the past decade (Fig. 1-4). This reflects the region’s ongoing appeal for buyers seeking modern properties.
In the municipalities of the North Costa Blanca, there were 5,464 home sales, reflecting a year-on-year decline of 2% (Fig. 1-5). However, compared to the ten-year average, this represents an increase of 26%, and over the decade, sales have grown by 62%.
Prices
The average price of homes sold in Alicante during the period was €168,678, representing a 10% increase year-on-year (Fig. 2-1).
For new builds, the average price was €286,843, up 12% year-on-year (Fig. 2-2).
Over ten years, a price index reveals a rise from a baseline of 100 to 148 for all properties and 168 for new properties (Fig. 2-3).
Over the last five years, prices have risen by 48% for all properties and 37% for new builds, demonstrating steady upward momentum in the market in recent years.
Javea case study
In Jávea, the average asking price for property in H1 2024 was €3,184 per square metre, reflecting a 9% annual increase (Fig. 2-4). Over five years, prices have risen by 42%.
A ten-year index (Fig. 2-5) shows varied growth across the region, with Jávea reaching 173, compared to 162 in Denia, so price has also be driven by local factors.
Mortgages
There were 8,130 new mortgages signed in Alicante province, a 9% decline year-on-year (Fig. 3-1). However, this figure represents a 6% increase compared to the ten-year average and a 61% rise over the past decade, showing long-term resilience in lending activity.
The average Euribor rate during the period was 3.67% (Fig. 3-2), a slight decline from last year’s high of 3.69%. While still elevated compared to pre-2022 levels, Euribor remains far above the pandemic-era lows of -0.49% seen in 2021. European Central Bank (ECB) monetary policy, characterised by tighter interest rates to combat inflation, is expected to keep rates stable or higher in the short term, maintaining upward pressure on borrowing costs.
Housing starts
There were 2,999 housing starts in H1 2024, reflecting a 33% decline year-on-year (Fig. 4-1). Although this figure is 2% above the ten-year average and 34% higher than a decade ago, it remains below the pre-pandemic levels of 2017–2019, indicating a lag in new supply.
Summary: key takeaways
- Sales growth: Transactions increased by 6% year-on-year, with strong participation from foreign buyers.
- Foreign market share: Despite a slight dip, foreign buyers still represent over half of the market.
- New builds surge: Sales of new properties grew by 27% year-on-year.
- Price momentum: Average prices increased by 10% for all properties and 12% for new builds.
- Mortgage trends: Borrowing activity remains robust despite rising interest rates.
- Housing starts lagging: Construction activity has yet to fully recover from the pandemic’s impact.
Conclusion
The North Costa Blanca housing market remains a robust and dynamic segment, with strong price growth, high foreign buyer activity, and solid new-build sales. While mortgage activity has softened slightly due to higher interest rates, the long-term trajectory points to sustained demand and upward price pressure. However, the lag in housing starts could constrain supply, potentially accelerating price growth in the coming years.
Municipalities analysed in this report include: Benissa, Benitachell, Calpe, Denia, Javea, Teulada, Alfàs del Pi, Altea, Benidorm, Finestrat, and Villajoyosa.
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Disclaimer
These reports are prepared in good faith using publicly available data. While efforts are made to ensure accuracy, no guarantees are provided regarding the completeness, reliability, or suitability of the information for any purpose. Use of this information is at your own risk.
