The Luxury Property Market Costa Blanca: Why Prime Areas Continue to Climb
The Luxury Property Market Costa Blanca continues to show remarkable strength in 2025, even as foreign demand has cooled slightly compared to previous years. While the pace of international buyer activity has eased, foreign purchasers remain the dominant force in the region. This sustained overseas demand, paired with strong domestic activity, has helped keep prices rising in key high-end locations such as Jávea, Dénia and Moraira, where premium homes remain exceptionally sought after.
Foreign demand softens—but stays strong
Although there has been a mild reduction in the volume of foreign buyers entering the market, the segment remains the backbone of the North Costa Blanca’s luxury sector. International purchasers still account for a significant proportion of transactions, and in high-demand coastal zones their influence remains even more pronounced. In the whole of the Alicante province, foreigners have so far accounted for around 49% of transactions to date.
Prime coastal areas continue to drive price growth
The story of the Luxury Property Market Costa Blanca for this year is largely shaped by its top-performing micro-markets, although Alicante as a whole saw rises of 4.8% year on year.
- Jávea continues to lead with strong year-on-year price increases driven by limited supply and ongoing international appeal. Prices have increased by approx. 14% year on year.
- Dénia remains a rising star, with sustained price momentum in modern villas and sea-view apartments. Prices have increased by approx. 11% year on year.
- Moraira, long considered one of Spain’s most refined coastal towns, maintains high competition for well-located luxury homes. Prices have increased by approx. 9.5% year on year.
These areas are seeing the strongest upward price pressure because premium stock is scarce, lifestyle demand is high and international interest remains resilient.
Mortgage completions surge, signalling renewed confidence
A key indicator of renewed buyer confidence is the sharp increase in mortgage completions in recent months. Falling borrowing costs and improving financial conditions have encouraged both local and international buyers to resume financing activity. For the luxury market, this trend is particularly relevant as high-net-worth buyers often use financing strategically, and rising mortgage activity typically precedes increased transaction volume. In a recent report by Spanish Property Insight it puts the increase at 37% compared with 2024.
What this means for buyers and sellers
For sellers, the market remains favourable. High-quality homes in premium coastal locations are still commanding strong interest and competitive prices. If anything, the slight easing of foreign demand has created a more balanced environment without diminishing overall market strength.
For buyers, the Luxury Property Market Costa Blanca presents an opportunity, especially as improved financing options and a more measured pace of international demand provide room for strategic decision-making. Those looking for exceptional homes in Jávea, Dénia or Moraira may find that now is an ideal moment to secure a prime property before further market tightening.
Q&A: Understanding the Luxury Property Market Costa Blanca
Q: Has the dip in foreign demand affected luxury property values?
A: Not in prime areas. Prices in Jávea, Dénia and Moraira continue to trend upward due to strong underlying demand and limited availability of high-quality homes.
Q: Why is mortgage activity important for the luxury sector?
A: A surge in mortgage completions indicates improved buyer confidence and better financing conditions—important factors for both domestic and international high-end buyers.
Q: Are these coastal hotspots still a safe investment?
A: Yes. Prime Costa Blanca locations have historically shown resilience. In 2025, they continue to outperform the broader market thanks to strong lifestyle appeal and international demand.
Q: What are the advantages for buyers right now?
A: Stabilised foreign demand, improved financing conditions and a still-growing market create a strategic moment to purchase, especially before prices potentially accelerate further.
A Final Word from TheAgencyRE Costa Blanca
At TheAgencyRE Costa Blanca, our team specialises exclusively in the region’s high-end market and whether you’re looking to purchase a contemporary villa, a frontline coastal retreat or a luxury resale property with strong investment potential, we provide tailored guidance, discreet access to premium listings and expert negotiation support, plus lifestyle and relocation advice.
For sellers, we offer deep market insight and world-class marketing to ensure your property reaches the right international audience and achieves its full value. From strategic pricing to professional staging, global exposure and private-client service, we ensure every step is handled with precision.
