In 2025, the property market on the northern Costa Blanca will be more diverse than ever before. While high-quality second homes with sea views continue to rise in price in places such as Dénia, Jávea, Altea and Calp, political intervention and a limited supply of regular housing are creating new dynamics - particularly in the rental segment. Demand remains high, stock is scarce - and foreign buyers continue to dominate the market.
Boom in high-quality property
According to Engel & Völkers, the average price of properties sold in the Alicante region in 2024 was around €620,000, with over 18% of transactions above the million mark. Particularly in demand: locations such as Altea Hills, Cumbre del Sol, Poniente beach in Benidorm and golf resorts near Orihuela. Prices there are rising to over €4,000/m² in many places. In Moraira and Calp, average prices for premium properties are already between €880,000 and €915,000.
Demand remains international - but differentiated
The buyer structure remains clearly international: 83% of the transactions in Altea, Calp and Moraira relate to second homes, mostly from Germany, the Netherlands and the UK. At the same time, purchasing power is stable overall - but the countries of origin are shifting. While buyers from Scandinavia declined significantly in 2024, Poles, Dutch and Belgians made strong gains. The share of pure direct purchases (excluding mortgages) is over 70% regionally.
Prices are rising - but in different ways
The average price in the entire province of Alicante in 2024 was 162,132 euros, with an annual increase of 7%. The increase was particularly strong in the coastal towns of the Marina Alta and Baixa: according to Fotocasa, a price increase of between 5 and 14% was recorded in these regions. The trend is expected to continue moderately in 2025, depending on the location and segment.
Regulation changes the game
Regulation is a growing factor: the two-year moratorium on new holiday rental licences that has been in place since 2025 is changing the market permanently. Owners with a valid licence are sitting on a valuable asset - while new entrants remain blocked. At the same time, rents are rising sharply because living space has been taken off the market. Rents in Alicante city are currently €12.51/m², and even higher in coastal towns such as Altea and Benidorm.
In the long term, this should increase the attractiveness of long-term lettings - both for owners and for buyers who are not permanently on site themselves.
New construction as a scarce commodity
The decline in new construction projects - 33% fewer new builds were started in the first half of 2024 alone - is leading to additional supply pressure. In addition, property developers are focusing on energy-efficient projects with high standards, which is causing prices to rise further. Especially in popular municipalities such as Jávea, Calp and Dénia, there is a lack of land and building permits.
Opportunities for informed buyers and investors
Anyone looking to buy or sell a property in the Marina Alta or Baixa in 2025 should carefully analyse the local differences. While the second-home market will remain stable, the rental market will bring new challenges - but also opportunities.
The key lies in a clear strategy, knowledge of the legal framework and a good sense of location, timing and utilisation prospects.
From compact city flats to designer villas with sea views - the property options between Dénia and Villajoyosa are so varied.
- Flats close to the city: Particularly popular in Dénia, Calpe or Villajoyosa. Ideal for couples or as a second home. Often with balcony, garage or communal pool.
- Terraced houses and bungalows: In urbanisations like Alfaz del Pi
or Altea Hills, they offer privacy, but also the advantages of a residential complex. Many have gardens or terraces.
- Detached villas: Mainly in Moraira, Benissa or Jávea - with spacious plots, pools and sea views. These properties characterise the upmarket.
- Rustic fincas: In the hinterland of La Nucía or Pedreguer, you will find lovingly restored country houses - often with large grounds and lots of charm.
- New construction projects: Modern facilities are currently being built in almost all municipalities - often energy-efficient and with modern equipment
and high demand from international buyers.
Anyone wishing to purchase a property on the Costa Blanca should expect to pay 11-14% in additional costs on top of the advertised price.
Here is an overview of the most important items:
- Property transfer tax (ITP): 10% on the purchase of a second-hand property
- Value added tax (IVA) + stamp duty (AJD): for new buildings together
around 11.5%
- Notary and land registry costs: approx. 1% of the purchase price
- Legal and administrative costs: between €1,500 and €3,000, depending on expenditure (incl. lawyer, NIE application, translations)
- Appraisal costs: optional, but useful in case of uncertainties or financing
- Financing costs: vary depending on the bank (processing fee,
Mortgage tax, valuation costs if applicable)
The running costs should also be included in the calculation:
- Property tax (IBI): depending on location and municipality
- House allowance: for condominiums in communal areas
Tip: Regional specialities - in Calpe, Jávea or Altea, for example
can mean additional requirements or fees. A specialised lawyer or estate agent can help you avoid unexpected costs.
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