Costa Blanca Real Estate Outlook 2026: North vs South Explained

The Costa Blanca continues to stand out as one of Spain’s most resilient and attractive property markets. As we move towards 2026, buyers and investors are increasingly looking beyond short-term trends and focusing on long-term stability, lifestyle value, and regional differences.

Based on current market data, buyer behaviour, and supply dynamics, the outlook for the Costa Blanca in 2026 remains positive. However, the opportunities differ significantly between Costa Blanca North and Costa Blanca South. Understanding these differences is key to making the right decision.

This guide breaks down what to expect in 2026, where the best opportunities lie, and how different buyer profiles are positioning themselves in the market.

Costa Blanca Property Market Overview for 2026

The Costa Blanca benefits from a unique combination of international demand, strong infrastructure, year-round livability, and limited supply in prime locations. Unlike speculative markets, growth here is driven primarily by lifestyle buyers and long-term investors.

For 2026, average price growth across the region is expected to remain steady, with forecasts indicating an increase of approximately 6% to 8%. 

This growth is supported by:

• Continued demand from Northern Europe and the UK

• A structurally tight housing supply, especially in coastal areas

• Limited new-build availability in established prime locations

• A strong rental market, both long-term and seasonal

While the region as a whole performs well, the North and South of the Costa Blanca attract very different types of buyers and investment strategies.

Costa Blanca North: Scarcity, Quality and Long-Term Value

Costa Blanca North includes locations such as Altea, Jávea (Javea), Moraira, Benissa and surrounding areas. This part of the coast is known for its natural beauty, lower density developments, and strong focus on quality housing.

The defining characteristic of the northern Costa Blanca is scarcity. There is very limited land available for new developments, especially in established coastal zones with sea views. This creates natural price support and long-term value growth.

In 2026, average prices in Costa Blanca North are expected to range between approximately €3,200 and €4,500 per square metre, depending on location, views and property type. Prime villas and frontline properties can exceed this range.

Price growth expectations for 2026 in the north are estimated at around 7% to 9%, driven by sustained international demand and limited supply.

Buyers in Costa Blanca North are typically: 

• Well-capitalised international buyers

• Lifestyle-driven purchasers

• Long-term holders rather than short-term investors

The focus here is less on immediate rental yield and more on capital appreciation, exclusivity, and quality of life.

Costa Blanca South: Accessibility, Rental Demand and Yield

Costa Blanca South includes areas such as Torrevieja, Orihuela Costa, Guardamar and surrounding municipalities. This region offers a very different market dynamic.

Prices in the south remain more accessible, with average values in 2026 expected to range between approximately €1,800 and € 2.800 per square metre. This lower entry level attracts a broader group of buyers and investors.

Expected price growth for Costa Blanca South in 2026 is estimated at around 5% to 7%. While capital appreciation is slightly lower than in the north, this is balanced by stronger rental performance.

Costa Blanca South is particularly attractive for:

 • Investors focused on rental income

• Buyers with smaller initial budgets

• Purchasers looking for new-build apartments and resort-style developments

Gross rental yields in the south typically range between 5% and 7%, supported by high demand for both long-term rentals and seasonal lets.

Rental Market Outlook for 2026

The rental market across the Costa Blanca remains structurally tight. Population growth, international migration, and limited new housing supply continue to put pressure on availability.

In many places it is still allowed to do touristic rental.

Long-term rentals are in high demand across both regions, while seasonal rentals remain strong in coastal and tourist-driven locations.

While regulations around short-term rentals continue to evolve, the overall rental demand is expected to remain robust. For 2026, rental performance is expected to favour Costa Blanca South in terms of yield, while Costa Blanca North continues to prioritise exclusivity and long-term value.

Buyer Profiles and Investment Strategy

Choosing between Costa Blanca North and South largely depends on your objectives.

If your priority is long-term capital growth, scarcity, privacy, and premium living, Costa Blanca North remains the stronger choice.

If your focus is rental income, lower entry prices, and flexibility, Costa Blanca South offers more immediate opportunities.

Many international buyers in 2026 are increasingly diversifying their strategy, combining lifestyle-driven purchases with income-generating properties depending on location.

Outlook for 2026: A Balanced but Resilient Market

Looking ahead, the Costa Blanca is expected to remain one of Spain’s most stable real estate regions. Unlike markets driven by speculation, growth here is underpinned by real demand, international appeal, and a strong quality-of-life proposition.

Costa Blanca North offers security, scarcity, and premium value retention.

Costa Blanca South provides accessibility, liquidity, and strong rental performance.

For buyers and investors who understand these differences, 2026 presents solid opportunities on both sides of the coast.

Select Estates is presented in Costa blanca North and as well in the South, with our local agents we can inform you the best possibilities to invest.