If you have been keeping an eye on the Costa Blanca real estate market, the latest figures probably won’t come as a surprise. House prices continued their upward march throughout 2025, rising by 14.4% over the year.
These figures are according to the latest data from property portal Idealista.
That increase puts the average price on the Costa Blanca at around €2,508 per square metre, with Alicante city itself recording a solid 10.7% annual rise. It is another clear sign that demand for homes in the area remains strong, despite ongoing concerns about affordability.
Across the Valencian Community
The Costa Blanca’s growth reflects a wider trend across the Valencian Community, where the housing market has now reached record-high levels. Regional prices climbed by 17.3% in 2025, pushing the average cost to €2,418 per square metre.
All three provinces saw double-digit increases. Valencia led the way with a rise of 22.8%, followed by Alicante at 14.4% and Castellón at 12.8%. Valencia city has now broken new ground, reaching an average price of €3,269 per square metre, while Castellón de la Plana rose to €1,550 per square metre after an 11.2% increase.
Big jumps inland
Within Alicante province, the biggest price jumps weren’t always along the coast. Several inland and mid-sized towns saw dramatic increases, led by Rafal, where prices surged by an eye-catching 74.5% compared to 2024. Jacarilla followed with a 60.4% rise, and Pego saw prices climb by 48.9%.
That said, the picture isn’t the same everywhere. Some municipalities recorded noticeable drops, including Algorfa (-10.5%), Benejúzar (-6.3%), and Alcalalí (-5.9%). These variations highlight how local demand, location, and proximity to the coast or tourist areas can significantly affect prices.
A national trend
Zooming out to the national level, Spain’s resale housing market also hit record highs in 2025. Average prices rose by 16.2% year on year, reaching €2,639 per square metre, the steepest increase since the housing bubble burst.
Major cities continued to push prices upwards, with Madrid up 17.5%, Valencia 15.3%, and Barcelona 9.4%, all setting new records.
Real estate price rise
According to Francisco Iñareta, spokesperson for Idealista, the main driver behind rising prices is a long-standing shortage of housing supply. Construction levels never fully recovered after the 2008 financial crisis, and the Bank of Spain estimates that the country needs around 700,000 new homes to meet current demand.
Experts also point to the need for planning reform and stronger public policies to encourage affordable housing, including faster planning processes and updates to land-use regulations.
Costa Blanca real estate
In popular Costa Blanca locations such as Alicante city, Dénia, Torrevieja, and Elche, rising prices are making it increasingly difficult for young people and middle-income families to buy or rent.
While growth hasn’t been as extreme as in Madrid or Barcelona, the steady upward trend leaves little sign of short-term relief.
