Information on The Spanish Property Market
Understanding the Costa Blanca South Property Market
Spain has been one of Europe’s most popular property investment destinations for over thirty years. Foreign nationals have long been drawn here. The Costa Blanca South property market in particular has become one of the most sought-after regions for holiday homes and permanent relocation alike.
How the Market Has Evolved
The Spanish property market has been through several distinct phases over the past two decades. It was strong in the early 2000s. It then went through a well-documented crash in 2008, before stabilising again around 2012. Since 2017, the Costa Blanca South has become a particular hotspot, with demand and prices both showing steady growth. Returns for investors here have remained strong throughout. The market itself has stayed comparatively stable, even as sales activity has risen sharply in recent years.
Spain at a Glance
Spain’s resident population reached approximately 49 million as of January 2025. This is according to the Spanish National Statistics Institute (INE). The currency is the Euro, the capital is Madrid, and the country dialling code is +34.
Investment Property in the Costa Blanca South
Buyers from many countries have invested heavily in property here over the years. Foreign investment opened up significantly after the restoration of the Spanish monarchy. This followed a long period under General Franco, when foreign ownership of Spanish real estate was tightly restricted. Since then, Spain has become considerably more open to overseas buyers. The Costa Blanca South property market has benefited enormously as a result.
Residential and Apartment Demand
Over the past 15 years, many foreign nationals have purchased property here, primarily as second homes for holidays. In much of the Costa Blanca South, the residential market still favours buyers. This means there is a good choice of property in both coastal towns and quieter rural locations. Popular areas for SolMar Properties clients include Torrevieja, Orihuela Costa, Ciudad Quesada, Villamartín and La Zenia. There is also growing interest in smaller, more rural communities away from the busier resorts.
Apartments remain especially popular across the region. Overseas buyers account for a significant share of all apartment purchases in Spain. Broadly speaking, buyers tend to fall into three groups. Some are purchasing for retirement in a milder climate. Others spend part of each year in Spain. The rest are buying purely as a holiday home. All three groups continue to drive strong demand across the Costa Blanca South property market.
Holiday and Rental Property
Many buyers purchase property here for a dual purpose. They use it for personal holidays, then rent it out at other times of the year. Spain’s tax and rental framework makes this a genuinely worthwhile option for many overseas owners. SolMar Properties helps a number of our clients manage their properties for long-term and short-term letting. We’re always happy to discuss the rental potential of a property before you buy.
If you’re looking for your forever home or a smart investment in the Costa Blanca South property market, SolMar Properties is here to help. Browse our new build properties or resale homes, or read our Buying Guide to find out more about the purchase process. Contact our team today to get started.
