The housing market on the Costa Blanca is characterised by significant differences between municipalities, but there is also a general trend: in all towns in Alicante province analysed by Tinsa by Accumin, housing prices increased compared with last year. According to the report prepared by the company, Jávea is the most expensive at €3,455 per square metre, followed by Teulada (€3,292/m2), Dénia (€2,837/m2), Calpe (€2,830/m2) and Benidorm (€2,786/m2).
The market as a whole has already reached €2,201/m2 in Alicante’s coastal municipalities, 18.9% more than in the first quarter of 2025. Across the province, the average price stands at €1,902/m2, with growth even higher at 19.8%, while in the provincial capital of Alicante it increased by 16.8% to €1,993.
Housing affordability on the Costa Blanca
However, price is not the only indicator determining these differences. The costs required to purchase a home also play an important role. In Jávea, an average household has to allocate an amount equivalent to 69% of its disposable income to buying a home. In Teulada, this figure is 64%, in Calpe – 60%, in Benidorm – 59%, in Dénia – 55%, and in Altea – 54%. The average for Alicante’s coastal municipalities is estimated at 46%, compared with 39% for the province as a whole and 38% in its capital. In any case, this is significantly higher than 30% – the maximum level considered reasonable.
In this case, comparison with Spain as a whole further highlights the difference. On Spanish coasts, excluding provincial capitals, the average share of housing expenditure reaches 40% of disposable income, compared with 34% nationwide. Alicante is among the coastal areas where access to housing is most difficult, behind only the Balearic Islands (59%) and Málaga (57%).
Where housing prices are rising fastest
Focusing on price dynamics, the highest annual growth is recorded in Pilar de la Horadada – 31.2%, ahead of L’Alfàs del Pi (25.4%), Santa Pola (24.9%), Jávea (22.8%), Dénia (21.3%), Benidorm (20.5%) and Calpe (20.4%).
Compared with the peak prices of 2007 and 2008, Jávea is already 40.2% above those levels in nominal terms, Teulada – 36.3%, Dénia – 19.2%, El Campello – 17.7%, Calpe – 17% and Altea – 15.4%. However, after adjusting for inflation, almost all of these figures remain below the real peaks of the previous property market “bubble”.
Property transactions on the Costa Blanca
As for purchase and sale transactions, Torrevieja remains the municipality in Alicante province with the highest number of purchases – 6,913 in 2025, although this figure fell by 4.8%. It is followed by Orihuela – 4,992, Benidorm – 2,174, Dénia – 1,967, Santa Pola – 1,927, Guardamar del Segura – 1,377, Pilar de la Horadada – 1,329, Jávea – 1,074, Villajoyosa – 1,053 and Calpe – 1,038.
Overall, the municipalities of the Costa Blanca coast ended 2025 with 31,307 purchase and sale transactions, 3.6% fewer than a year earlier. Nevertheless, they account for 55% of all transactions in the province, where the total number reached 56,687. Tinsa notes that transaction volumes remain high following the peak reached in 2022.
In the rest of the country, sales volumes in coastal municipalities increased by 1.7% in 2025 to around 204,000 transactions, although trends varied between provinces. Alicante was among seven provinces where a decline was recorded, along with Valencia, Málaga, Las Palmas, Santa Cruz de Tenerife, the Balearic Islands and Asturias.
New housing construction gains momentum
While sales volumes are adjusting, new housing construction is gaining momentum. In Alicante’s coastal municipalities, 4,399 building permits were issued in 2025, an increase of 18.8% year-on-year, accounting for 42% of all construction activity in the province. Across the province, 10,468 permits were issued, an increase of 41.1%. In particular, 685 permits were issued in Benidorm, several times more than in the previous year, 351 in Villajoyosa, 255 in El Campello and 69 in Teulada. The number of permits declined in Guardamar, Pilar de la Horadada, Benissa, Jávea, Altea, Dénia and Elche.
At the national level, development activity on the coasts is also accelerating. In 2025, the number of permits increased by 21.7%, compared with 8.8% across Spain as a whole, and reached its highest level since 2009. Tinsa attributes the limited supply to factors such as a shortage of available land, high construction costs and a lack of labour.
Holiday property and foreign demand
In addition, the holiday housing market is at a higher level than the residential property market as a whole. According to Tinsa estimates, the average price is €3,200 per square metre in the area between Dénia and Benissa, €3,700 between Calpe and Villajoyosa and €3,500 both between El Campello and Santa Pola and between Guardamar and Pilar de la Horadada.
This segment occupies a special place on the Costa Blanca. Purchases made by foreign buyers account for between 40% and 75% of holiday property transactions depending on the area. Foreign demand comes mainly from Central Europe, the United Kingdom, Russia and Poland, while domestic demand comes from Madrid, Castilla-La Mancha and the Basque Country.
Housing prices on the Valencia and Castellón coasts
Prices are also rising in the other provinces of the Valencian Community, although the financial burden of purchasing is lower. On the Valencia coast, the average price is €1,600/m2 (+17.7%), while the share of income required for a purchase reaches 30%. The number of purchase and sale transactions fell by 6.1% to 8,518, while the number of building permits issued increased by 17.7%.
On the Castellón coast, the average price is €1,588/m2, while the share of income required for a purchase is also 30%. The number of purchase and sale transactions increased by 2.6% to 7,648, while the number of permits soared by 125.8% to 788. The main difference with Alicante is affordability – on the Costa Blanca, an average of 46% of household disposable income is required.
