Prices continue to soar as international demand holds strong
The property market in Costa Blanca South has surged into 2025 with continued strength, showing no signs of slowing down. Following a great 2024, the first quarter of this year delivered another solid boost with a 2.7% increase in average property prices compared to Q4 2024. That marks a remarkable 15.2% year-on-year rise, keeping the Costa Blanca firmly on the radar of both lifestyle buyers and investors.
Regional Growth Highlights
Orihuela Costa continues to cement its reputation as a property hotspot. Prices here rose by 1.8% in Q1 2025, building on last year’s explosive 17.5% increase. With average prices now approaching €2,800/m², limited supply and consistent demand—especially from Northern European buyers—are maintaining upward pressure. The upcoming launch of the Las Vistas project in Playa Flamenca is expected to add further momentum.
Torrevieja, long seen as a barometer for the region, has exceeded its previous market peak from 2006 and continues to climb. Q1 prices rose by 2.9%, and the town now sits 27% above its historic high. Infrastructure improvements like the Marina redevelopment and the new La Hoya avenue, opening for Easter, are making the area even more attractive.
Pilar de la Horadada saw a 2.6% quarterly rise, with prices now at €2,976/m²—a 17.6% jump year-on-year. New developments by Navasaez and Amay are strengthening the town’s appeal, especially among buyers looking for modern homes close to the beach.
Ciudad Quesada isn’t being left behind. With an average price of €2,900/m², the town recorded the region’s highest quarterly increase at 3.5%. This area continues to benefit from a wave of permanent relocations, especially from professionals seeking a better quality of life under the Spanish sun.
International Buyers Driving Demand
The Costa Blanca South market remains deeply international. In Q4 2024, 44% of all property transactions in Alicante province were completed by foreign buyers. While Polish, Dutch, Belgian, and French demand remains strong, agents are also seeing a rise in interest from Iceland and Sweden—driven in part by Spain's attractive climate, affordability, and long-term lifestyle benefits.
New Infrastructure Boosting Value
Upcoming developments like the private hospital and shopping centre in El Barranco (Villamartin) are enhancing the area’s appeal and bolstering buyer confidence. These improvements, coupled with strong lending conditions—such as long-term fixed-rate mortgages—make the Costa Blanca South a good opportunity in Spain's property market.
Conclusion: Still Time to Invest
With average property prices in the region sitting 16.7% above the national Spanish average, and some areas nearing €3,000/m², the Costa Blanca South market is entering a mature phase of sustainable growth. Supply is tight, demand is consistent, and local infrastructure continues to improve—making now an opportune moment to invest before prices climb further.
At Portfolio Deluxe, we’re here to guide you through every step of your property journey, whether you’re looking for a holiday home, a long-term investment, or a new place to call home.
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