South Costa Blanca property market

2024 Full Year

The Alicante & Costa Blanca housing market in 2024 maintained steady growth, supported by resilient transaction volumes, solid demand from both domestic and foreign buyers, and a healthy flow of new developments across the region. Foreign non-resident purchasers remained a key driver of activity, while resale properties saw particularly strong price performance. Meanwhile, mortgage dynamics began to stabilise amid declining interest rates, helping to ease financing pressures. This report explores the main housing market indicators and trends influencing this popular coastal area throughout the past year.

Sales performance

The Alicante housing market recorded 56,296 property sales in 2024, reflecting a stable year-on-year increase of 6% (Fig. 1-1). This figure was broadly in line with the ten-year average, showing a modest 0.3% increase by that metric, and well above the sector’s performance a decade ago – with a ten-year sales growth of 78%.

Sales involving foreign buyers remained a dominant segment of the market in 2024, totalling 28,267 transactions, with marginal year-on-year growth of 0.4% (Fig. 1-2).

Breaking this down further, 8,711 homes were purchased by foreigners residing in Spain (expats), a 4% decline from the previous year. Meanwhile, foreign non-residents, typically acquiring second homes or investment properties, accounted for 19,556 purchases—up 2% year-on-year. Over the past decade, purchases by expats have risen by 90%, while foreign non-resident demand has grown by 60%, confirming Alicante’s enduring appeal to international buyers.

Despite this sustained interest, the market share of foreign buyers declined slightly in 2024 to 51%, down from 54% the previous year (Fig. 1-3). While still comprising the majority of market activity, this dip suggests a modest shift in balance toward domestic demand or a more selective presence of international buyers compared to earlier peaks.

New-build sales stood at 6,386 in 2024, reflecting a healthy annual increase of 16% (Fig. 1-4), a performance that significantly outpaced the ten-year average with a notable 73% rise over the decade. This sustained growth highlights the strength of buyer appetite for newly constructed homes, driven by modern design preferences, energy efficiency, and increasing availability of high-quality developments across the region.

South Costa Blanca sales 

Focusing specifically on the municipalities* of the South Costa Blanca, the region accounted for 18,119 total sales, marking a 2% annual increase (Fig. 1-5), and a 64% gain over the decade, confirming this area’s continued popularity with foreign and domestic buyers.

House price trends

According to the Spanish Housing Ministry, the average property sale price in Alicante in 2024 was €176,283, an annualised increase of 11% (Fig. 2-1). However, new-build properties saw a decline in prices, with the average at €235,365, representing a year-on-year decrease of 15%. This divergence may reflect market sensitivity to higher pricing in the new-build segment or shifts in buyer preferences.

Looking at long-term trends, a ten-year price index shows all property prices in Alicante have risen by 51%, with the index increasing from 100 to 151 (Fig. 2-2). In contrast, new-build property prices have grown at a slower pace – rising by just 34%. This indicates that older properties have outperformed new builds in overall price growth during the past decade, possibly due to their availability in more central or established residential locations, which have grown in popularity.

Over five years, all property prices rose by 51%, compared to only 10% growth for new builds, further underlining the weaker performance of the new-build segment in recent years.

Torrevieja case study

In Torrevieja, a municipality popular with foreign buyers, the property portal Idealista reports the average asking price rose to €1,953 per square metre, reflecting a 13% year-on-year increase (Fig. 2-3). Over the past five years, asking prices have climbed 43%, while over a decade, they have surged by 79%, with the index rising from 100 to 179. This trend illustrates strong underlying demand, particularly from the international market, and contributes to upward pressure on prices.

Mortgage market

Mortgage activity in Alicante saw a slight annual decline in 2024, with 15,913 new mortgages signed, 5% lower than the previous year (Fig. 3-1). Compared to the ten-year average, mortgage issuance remained flat with a 5% increase, while over a decade lending activity has grown by 55%.

The average Euribor rate during the period was 3.27% (Fig. 3-2), down from its recent peak of 3.86% in 2023 and well above its decade low of -0.49% in 2021. Despite the recent decline, borrowing costs remain significantly higher than during the ultra-low rate era of the late 2010s.

This easing in Euribor reflects recent European Central Bank (ECB) policy adjustments amidst moderating inflation, providing some relief to borrowers. With markets currently pricing in gradual interest rate cuts in the euro area, further downward movement in debt servicing costs may support mortgage uptake and housing demand in the coming quarters.

Housing starts

There were 7,122 new residential construction starts in Alicante in 2024, representing a 5% annual decline (Fig. 4-1). When measured against the ten-year average, this level is still 24% higher, and overall, housing starts have risen by 68% over the past decade.

While the recent decline could suggest a more cautious approach from developers amid price uncertainty or cost inflation, the long-term trend remains strongly positive, reflecting continued appetite for new housing in the province.

Summary

• Total home sales stabilised with a 6% annual increase.
• Foreign buyers represented 51% of transactions but lost market share year-on-year.
• New-build sales showed strong year-on-year growth (+16%), while new-build prices fell.
• Average property prices rose by 11%, driven by resale homes.
• Torrevieja’s asking prices rose 13% year-on-year and 79% over a decade.
• New mortgage issuance dipped 5%, while Euribor eased slightly to 3.27%.
• Housing starts declined slightly but remain 68% above 2014 levels.

Conclusion

The Alicante housing market in 2024 demonstrated solid fundamentals, with stable sales volumes, ongoing international demand, and healthy price appreciation in the general resale segment. New-build properties faced softening prices, and the development pipeline showed signs of short-term correction after strong long-term expansion.

Mortgage and interest rate developments will play a key role as buyers assess affordability. With the ECB likely to pursue a more accommodative stance through 2025, easing borrowing costs may provide support to both domestic and foreign demand.

Overall, market indicators suggest a resilient and maturing real estate sector in Alicante, with steady investor interest and diversified sources of demand positioning it well for further long-term growth.

*Municipalities analysed for sales: Elche, Guardamar del Segura, Orihuela, Pilar de la Horadada, Torrevieja

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.