The Costa Blanca Property Market – The Costa Blanca North continues to be a highly attractive region for homebuyers and investors in 2024, thanks to its lifestyle appeal, scenic beauty, year-round Mediterranean climate, and investment potential. This year has seen steady growth in property values, with very strong demand from domestic and international buyers. Here’s an in-depth look at the current trends, statistics, and outlook for the future.
Property Market Trends and Statistics
1. Property Prices: The Costa Blanca North has seen a moderate but consistent increase in property prices throughout 2024. Towns like Javea, Denia, Moraira, and Altea have seen property price growth of approximately 5-7%, which is slightly above the national average. This increase is largely driven by the high demand for luxury villas, coastal apartments, and townhouses, especially from international buyers who want to enjoy the luxury lifestyle on offer.
If we investigate a bit deeper we find out that Javea has seen a 5.1% increase year-on-year, Denia has a 4.9% increase, Moraira has a 5.0% increase, Calpe experienced a 4.8% increase and Altea has seen a 4.7% increase.
- Average Price of Villas: In prime locations like Javea and Moraira, the average price for luxury villas ranges from €500,000 to €2.5 million, depending on proximity to the sea and size of the property.
- Apartments and Townhouses: Coastal apartments, especially in hotspots like Denia, start at around €200,000 and can go up to €800,000 for more exclusive properties with sea views and modern amenities.
2. Buyer Demographics: International buyers continue to dominate the market, with a strong presence from the UK, Germany, Scandinavia, Belgium and the Netherlands, with numbers from the USA also significantly rising. The likes of remote working, the on-going Golden Visa Scheme, the wish for a better environment in which to enrich & inspire the family, and the need to find a more relaxed way of living post retirement, have all lead to a growing interest in properties that offer high-quality living in proximity to both the mountains and the Mediterranean.
3. Rental Market Trends: The short-term rental market has also remained strong, with high demand for vacation homes during peak holiday seasons. This makes buying property in the Costa Blanca North an attractive investment, as many owners rent their homes during the months they are not using them, offering an excellent ROI. According to the latest data, rental prices have increased by an average of 4.3% in 2024 and the demand for holiday homes has resulted in a 3.9% increase in average rental yields across the region.
The recent changes in legislation which now prevents owners from renting out their homes unless they have a license to do so has also changed the market demographic, reducing the number of casual investors and attracting more serious buyers who are willing to comply with the legal requirements.
As a result, you’ll find that properties which already have rental licenses are in higher demand, often commanding a premium. Buyers who intend to use their homes primarily for personal use or long-term rentals may find themselves in a stronger position to negotiate, while investors focused on the short-term rental market will need to navigate the licensing process and factor these costs into their investment calculations.
The upside to all this of course, is that it ensures the rental market remains well-regulated, which benefits both tenants and investors in the long run, contributing to the overall stability and sustainability of the Costa Blanca North property market.
Outlook for the Future
The outlook for the Costa Blanca North property market in 2024 and beyond remains extremely positive. Experts predict that the region will continue to experience stable growth, with property prices increasing gradually as demand from both local and foreign buyers remains high. The infrastructure developments planned for the region, such as the expansion of roads, improved healthcare facilities, and the push toward sustainable, eco-friendly living spaces, will further enhance its appeal.
The Costa Blanca has also seen a surge in new developments, particularly in areas like Moraira and Benitachell where developers have been focusing on building modern villas and apartment complexes, catering to the high demand for upscale residences. This trend is expected to continue as more international buyers flock to the area, attracted by the modern amenities and scenic landscapes. Developers have also been cautious to not overbuild, and preserve the natural beauty of the region, ensuring that the Costa Blanca North remains a high-end, desirable location.
Investment Potential
Investing in property in The Costa Blanca North remains a smart financial move for several reasons:
- Steady Price Growth: With moderate annual price increases, investors can expect solid capital appreciation over time, particularly in prime areas like Javea, Moraira, and Altea.
- Strong Rental Demand: The region’s popularity among tourists ensures that short-term rentals remain highly lucrative. Rental yields in the area typically range from 4% to 6%, with luxury properties in beachfront or prestigious golf communities achieving even higher returns.
- New Developments: While there is a strong focus on resale properties, new developments, especially in eco-friendly, energy-efficient buildings, are attracting a growing number of buyers. This segment is especially appealing to investors seeking low-maintenance, modern homes.
- Growing International Interest: The Costa Blanca North’s reputation for offering high-quality living with a Mediterranean lifestyle has seen a surge in interest from affluent buyers across Europe, further boosting its investment potential.
Lifestyle Appeal
The Costa Blanca North is synonymous with a luxurious, relaxed Mediterranean lifestyle. The region’s picturesque coastline, stunning mountain views, and charming towns create an idyllic backdrop for those seeking both tranquility and adventure. Key lifestyle attractions include:
- Beaches: With an array of Blue Flag beaches, such as those in Javea and Calpe, Costa Blanca North offers some of the most beautiful stretches of sand and crystal-clear waters in Spain.
- Cuisine: The Mediterranean diet reigns supreme here, with fresh seafood, local wines, and farm-to-table ingredients available at world-class restaurants, particularly in towns like Denia, known for its Michelin-starred dining.
- Outdoor Activities: Golf enthusiasts are drawn to courses like La Sella in Denia, while nature lovers enjoy the hiking and cycling trails in the Montgó Natural Park. The region’s mild climate also allows for year-round outdoor living.
- Culture and Events: Towns like Altea and Benissa host vibrant cultural festivals, art exhibitions, and music events, adding a touch of sophistication and community to the area.
In conclusion, the Costa Blanca North property market in 2024 offers a compelling combination of stable growth, investment potential, and lifestyle appeal. With property prices expected to rise moderately in the coming years, now is an excellent time for buyers to consider investing in this desirable region. Whether you’re seeking a holiday home, a rental investment, or a permanent residence, Costa Blanca North continues to stand out as one of Spain’s most attractive real estate markets.
If you’d like to learn more about Buying Luxury Property on the Costa Blanca North you can download our Luxury Lifestyle Guide Here. Similarly, if you’d like to contact us directly, you can do so here.
