The Costa Blanca real estate market, particularly in the northern areas, has remained one of Spain’s most resilient regions, even after the rapid growth seen in recent years. Heading into 2024, several key trends are emerging that both buyers and sellers should take into account. These trends shape the market outlook and offer insight into how the region’s property sector is likely to evolve.
1. Steady Interest from International Buyers
The appeal of Costa Blanca for foreign property buyers remains strong, particularly in popular coastal areas such as Denia, Altea, and Javea. Even though 2023 saw a slight reduction in overall home sales, the percentage of foreign buyers increased, making up more than half of the total transactions in the region. International demand, especially from Northern European countries, has been a critical driver of the market’s stability, and this trend is expected to continue into 2024. Many foreign buyers are drawn to Costa Blanca’s favorable climate, picturesque landscapes, and relatively affordable property prices compared to other Mediterranean destinations.
2. Growing Demand for New Builds
New developments are becoming increasingly popular in Costa Blanca, particularly among international investors who are looking for modern, energy-efficient homes. In 2023, sales of new build homes saw a notable increase, driven by demand for properties that meet contemporary sustainability standards. This demand is expected to grow in 2024, as more buyers prioritize homes with eco-friendly features such as solar panels, smart home technology, and energy-saving designs. The steady rise in planning applications for new projects suggests that more new build options will be available in the near future, catering to this demand.
3. Rising Property Prices
Property values in Costa Blanca have been climbing steadily, with many areas reaching their highest asking prices in a decade. Towns like Moraira and Benitachell, known for their exclusive villas and proximity to the sea, have experienced particularly sharp increases in prices. This upward trend is likely to continue in 2024 as international demand grows and supply remains somewhat limited. Sellers in Costa Blanca, especially those in prime locations, can expect to benefit from this price appreciation, making it a good time to list properties for sale.
4. Impact of Higher Interest Rates
While foreign buyers are often less reliant on financing, local buyers are feeling the effects of rising interest rates. Over the past couple of years, mortgage rates have increased significantly, making borrowing more expensive for Spanish residents. Despite this, the Costa Blanca market has remained resilient, partly due to the high proportion of cash purchases by international buyers. However, as interest rates stabilize in 2024, we may see more local buyers re-enter the market, particularly if financing becomes more affordable.
5. Sustainability in Real Estate
Sustainability is becoming an important factor in the Costa Blanca property market. More buyers, particularly those from environmentally conscious countries, are seeking homes with green features that reduce their carbon footprint. Developers are responding to this demand by offering homes with energy-efficient designs, improved insulation, and renewable energy sources. Properties that incorporate these features are expected to have a competitive edge in the market, particularly as sustainability continues to gain importance among buyers.
6. Expanding Rental Market
The rental market in Costa Blanca, particularly for short-term rentals, is expected to grow in 2024. The region’s strong tourism industry, along with increasing interest from expatriates and remote workers, is driving demand for rental properties. Investors looking for steady income streams are likely to find good opportunities in the area’s rental market, particularly in high-demand tourist destinations like Benidorm and Altea. As tourism continues to recover post-pandemic, rental yields are expected to rise, making property investment in Costa Blanca even more attractive.
7. Shift Towards Digital Property Search
The way buyers search for properties is shifting, with more people turning to digital platforms to find their ideal home. Virtual tours, online property listings, and targeted digital marketing are becoming essential tools for real estate professionals. Agents and developers in Costa Blanca who embrace this digital transformation are likely to capture a larger share of the market. Buyers, particularly those from overseas, are increasingly relying on online tools to narrow down their options before visiting properties in person, making a strong online presence more important than ever.
Conclusion
The Costa Blanca real estate market continues to be one of the most dynamic and attractive regions for property investment in Spain. As we move into 2024, the combination of strong international demand, rising prices, and growing interest in sustainability and new builds will shape the market. Whether you are looking to buy, sell, or invest, understanding these trends will be key to making the most of the opportunities available in this highly sought-after region.
References: Spanish Property Insight
