A hand holding a set of house keys.
Costa Blanca property market heats up with double digit growth. Photo by Jakub Żerdzicki on Unsplash.

The Costa Blanca property market is showing no signs of slowing down. House prices across the Costa Blanca have continued to rise at the start of 2026, with coastal hotspots leading the way.

According to the latest Tinsa IMIE Local Markets report, the average property price in Alicante province now stands at €1,877 per square metre, following an 18.3% annual increase and a 4.2% quarterly rise.

It’s another sign that demand for homes in the Costa Blanca remains strong, particularly in popular coastal towns.

Benidorm leads the Costa Blanca market

Benidorm continues to top the list as the most expensive property market in the province. Prices there have reached €2,786 per square metre, the highest among the municipalities analysed.

The city recorded:

  • 20.5% annual growth
  • 2.7% quarterly increase

With strong demand from both domestic and international buyers, Benidorm remains one of the Costa Blanca’s key property hotspots.

Coastal towns continue to rise

Other popular coastal destinations are also seeing steady price growth:

  • Orihuela: €1,986 per m² (+15.4% annually, +4.8% quarterly)
  • Alicante city: €1,980 per m² (+16.1% annually, +2.6% quarterly)
  • Torrevieja: €1,859 per m² (+15% annually, +3.4% quarterly)

These areas continue to attract buyers thanks to lifestyle appeal, strong tourism and year round demand.

Inland areas also see growth

The upward trend isn’t limited to the coast. Several inland cities are also experiencing rising prices:

  • Elche: €1,552 per m² (+16.2% annually, +6.4% quarterly)
  • Elda: €866 per m² (+13% annually, +4.8% quarterly)
  • Alcoy: €802 per m² (+5.8% annually, -0.9% quarterly)

Although inland areas remain more affordable, they are still benefiting from increased demand.

Alicante outperforms national average

The 18.3% annual increase places Alicante province above the national average, which stands at 14.3%, with Spain’s average price at €1,987 per square metre.

Alicante ranks among the fastest growing markets in Spain, behind only:

  • Toledo (+23.2%)
  • Albacete (+19.6%)
  • Madrid (+19.2%)

And ahead of major markets like Barcelona (+11%).

New construction also increases

There are also signs of increased building activity. In January 2026, 213 new building permits were approved in Alicante province, compared to 180 in January 2025, an 18.3% increase.

Residential projects accounted for the majority, with 209 buildings approved, up 21.5% year on year.

Supply still limited despite new builds

Despite growing construction activity, housing supply remains tight. The number of homes available for sale in Alicante fell by 5% in 2025, keeping pressure on prices.

At the same time, property sales have started the year more slowly. A total of 4,309 transactions were recorded, 7.7% fewer than a year earlier, with new build sales falling by 20.9%.

Enjoy more Costa Blanca Real Estate news.

 

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