Spain’s real estate market shows no sign of cooling, with prices climbing 15.3% year-on-year in the third quarter.
The national average now sits at €2,517 per square metre, a record high, as supply continues to lag behind growing demand, according to the latest Idealista index.
Among the hottest markets is the Valencian Community, where Alicante and the Costa Blanca are proving especially popular with both Spanish buyers and international newcomers.
Spain’s real estate market: Costa Blanca keeps climbing
Alicante province recorded a 15.8% annual rise in property prices, one of the sharpest in Spain. The surge reflects not only the national housing squeeze but also the area’s appeal: a Mediterranean lifestyle, modern infrastructure, and property prices still well below those in Madrid or Barcelona.
From Benidorm and Altea to Jávea and Torrevieja, the coast continues to attract steady demand, particularly from northern Europeans looking for second homes or retirement getaways. Local agents report that while new developments are appearing along the shoreline, supply remains tight. Inland towns like Villena, Elda and Orihuela are now drawing attention from buyers seeking more space and value.
Valencian Community among Spain’s top performers
Across the wider region, property prices jumped 16.9% compared with last year, putting the Valencian Community among the fastest-growing housing markets in the country. Valencia province led the charge with a remarkable 22.1% rise, followed closely by Alicante, while Castellón also saw steady gains.
Only Madrid, Andalusia and Murcia recorded similar growth rates. Analysts at Idealista say strong demand, combined with limited new construction, continues to push prices higher, especially in well-connected coastal areas.
Experts call for more homes
Francisco Iñareta, spokesperson for Idealista, summed it up simply:
“With current demand and the accumulated housing deficit of recent years, hundreds of thousands of new homes are needed to overcome the crisis in the buying and selling market. The situation is particularly pressing in coastal regions like the Valencian Community.”
Spain’s real estate market: Room to grow
Despite the rapid price growth, the Valencian Community remains relatively affordable. The Balearic Islands top the national table at €5,090 per square metre, followed by Madrid (€4,343) and the Basque Country (€3,299).
