Costa Blanca Market Report: Spain’s Economic Growth Drives Luxury Property Boom – Spain is in the spotlight once again. According to the Financial Times, the country has overtaken its peers to become Europe’s strongest economy in 2025 — and this momentum is having a direct impact on the housing sector.
This Costa Blanca Market Report looks at how Spain’s economic resurgence, the uptick in mortgage approvals, and predictions of further price growth are combining to create a unique opportunity for buyers of luxury property along this stunning stretch of Mediterranean coastline.
Spain Leads Europe in Growth
Since the beginning 2024, Spain’s GDP has expanded at around 3% annually, far outpacing the eurozone average of 1%. Analysts credit this to:
- A tourism sector that’s breaking records once again.
- EU recovery funds being channelled into infrastructure and innovation.
- A thriving renewable energy industry reducing costs and attracting investment.
- A growing and flexible labour market, boosted by immigration.
This strong performance has led major credit agencies like S&P, Fitch, and Moody’s to upgrade Spain’s outlook — signalling to international investors that Spain is one of Europe’s safest and most rewarding places to invest.
Mortgage Growth Shows Buyer Confidence
Another positive sign for this Costa Blanca Market Report is the surge in mortgage approvals. Data shows:
- Approvals were up 25% year-on-year when comparing Q2 of 2025 to Q2 2024
- The Valencian community saw 782 mortgages during that time
- 243,257 home loans signed in the first half of the year
Banks are opening credit lines more freely, showing confidence in an expansive market phase and in buyers themselves.
Spain’s Housing Market: Far from Peaking
Property experts agree that Spain’s housing boom is not yet slowing down and the market is “far from peaking,” with prices expected to rise to unprecedented levels.
Key stats underline this strength:
- According to Spain’s INE prices increased 12.7% in the second quarter of this year
- Supply of homes for sale down by 20% year on year in Q2 2025
- Continued demand from the British, German, Dutch and US Market
This makes the Costa Blanca Market Report especially important for investors, as the region consistently outperforms the national average thanks to its coastal lifestyle, international demand, and limited supply of prime locations.
Why the Costa Blanca Luxury Market Will Benefit Most
The Costa Blanca is uniquely positioned to capture the benefits of Spain’s economic resurgence.
Here’s why:
- High Investor Confidence – With Spain leading Europe, international buyers see luxury Costa Blanca property as a safe and rewarding investment.
- Lifestyle Appeal – 300 days of sunshine, Michelin-starred restaurants, prestigious marinas, and golf resorts make this region a lifestyle magnet.
- Supply and Demand Imbalance – Frontline villas in Javea, modern penthouses in Altea, and luxury property in both Moraira and Denia remain scarce, ensuring long-term price growth.
- Capital Growth Potential – Historical data shows luxury segments perform strongly during times of economic expansion.
Costa Blanca Market Report: A Window of Opportunity
This Costa Blanca Market Report highlights economic growth, strong mortgage availability, and a housing market still climbing higher. For investors and lifestyle buyers alike, the message is clear:
Now is the time to consider investing in luxury property on the Costa Blanca. From designer villas in Altea to beachfront homes in Moraira and Javea, opportunities exist today that may not be available tomorrow as prices continue their upward trajectory.
Frequently Asked Questions — Costa Blanca Market Report 2025
Why is Spain currently Europe’s strongest economy?
According to the Financial Times, Spain is outperforming the eurozone thanks to strong tourism, EU-funded infrastructure projects, a growing renewable energy sector, and a dynamic labour market. This resilience has made Spain a top destination for investors, including those seeking luxury property on the Costa Blanca.
How are rising mortgages impacting the Costa Blanca property market?
Mortgage approvals were up 25% year on year for Q2, showing renewed buyer confidence and bank support. While this strengthens overall market activity, the luxury segment in the Costa Blanca is less mortgage-dependent and remains more stable than mass-market property.
Are property prices in Spain still going up?
Yes. In Q2 2025, average house prices rose 12.7%, according to INE data. Analysts say the Spanish housing market is “far from peaking,” with further price growth expected, particularly in prime coastal regions like the Costa Blanca.
Why is the Costa Blanca luxury property market so attractive right now?
The Costa Blanca combines limited supply with high international demand. Luxury villas in Javea, Altea, Moraira, and Denia are scarce, yet the region offers world-class marinas, fine dining, and 300+ days of sunshine. With Spain’s economy surging, this is one of Europe’s most compelling property markets.
Is now a good time to invest in Costa Blanca property?
With Spain’s economy leading Europe, mortgage approvals rising, and housing supply remaining tight, the conditions are highly favourable. Buyers who act now can benefit from both lifestyle advantages and the potential for strong capital appreciation.
Why Use The AgencyRE Costa Blanca to Help You Invest in Property?
- Local Expertise — Our team has in-depth knowledge of the Costa Blanca, from Javea and Altea to Moraira and Denia, ensuring you find the right property in the right location.
- Exclusive Access — We connect clients with premium properties, including luxury villas, seafront apartments, and gated community homes that aren’t always visible on the open market.
- End-to-End Guidance — From mortgage advice and legal checks to after-sales support, we ensure a seamless buying experience.
- Trusted Network — We work with leading local professionals, including lawyers, tax advisors, and notaries, to give you peace of mind throughout the process.
Contact us today to speak with one of our team or start your property search here to see our portfolio luxury properties.
