2026 Property Market Forecast for Property in Torrevieja & the Southern Costa Blanca

The Torrevieja and Southern Costa Blanca property market has shown steady, data-backed growth throughout 2024–2025. Based on the latest figures and supply–demand dynamics, 2026 is expected to deliver continued stability and moderate price appreciation across the region.

Market Overview as of Late 2025

• Spanish property prices increased by ~10% year-on-year in 2025, reaching around €2,094/m² on average.
  
  

• Coastal markets led growth, driven by strong demand from international buyers, retirees, and remote workers.
  
  

• Supply of new-build homes remains limited, placing upward pressure on prices.
  
  

• In Torrevieja, apartment prices in 2025 averaged ~€2,500–€2,600/m², with annual growth close to 10%.
  
  

• The region remains comparatively affordable versus Costa del Sol, Javea or Mallorca, which continues to attract value-focused buyers.

Price Forecast for 2026

Expected Price Growth: +5% to +9%

Based on current demand levels, limited supply and national forecasts, the Southern Costa Blanca is likely to see moderate price increases in 2026.

• Apartments currently at ~€2,600/m² may rise to €2,730–€2,830/m².
  
  

• Sea-view, coastal, or renovated homes may outperform the average.
  
  

• Lower-demand inland zones may rise more slowly or remain stable.

Drivers of Price Growth:

• Continued foreign demand (Northern Europe, UK, Belgium, Scandinavia)
  
  

• Ongoing supply constraints
  
  

• Strong rental demand for both holiday and long-term lets
  
  

• Competitive cost of living compared with other Mediterranean locations

Demand Outlook for 2026

International Buyers

Foreign buyer activity remains the primary engine of the Torrevieja market. Lifestyle relocations, second homes and retirement purchases continue to dominate.

Investors & Holiday Rentals

Holiday rentals show strong occupancy, supporting sustained investor interest. Long-term rental demand remains high due to local population growth and regional employment.

Digital Nomads & Remote Workers

Torrevieja continues to benefit from buyers seeking year-round climate, good connectivity and lower living costs compared with Spain's larger coastal cities.

Supply & New Build Development

New Build Supply

New construction is present but limited, especially close to the coastline. The highest demand is for:

• Modern apartments
  
  

• Energy-efficient homes
  
  

• Sea-view or near-beach units
  
  

• Properties with communal amenities

Demand continues to exceed supply, especially in premium micro-locations such as La Mata, Punta Prima, Playa del Cura, Orihuela Costa (Playa Flamenca, Campoamor, La Zenia).

Impact on Existing Property

Limited new-build supply increases competition for high-quality resale properties, supporting price stability and growth.

Rental Market Expectations for 2026

• Holiday rentals: High demand expected to continue, especially near beaches and tourist zones.
  
  

• Long-term rentals: Limited stock and population growth support rising rental prices.
  
  

• Investor ROI: Well-located properties typically achieve 4–7% gross yields, depending on size and seasonality.

Risks to Monitor in 2026

While the outlook is positive, these factors could influence performance:

• Mortgage conditions: If financing becomes more restrictive, some foreign buyer segments may slow.
  
  

• Economic conditions in buyer-origin countries: UK, Nordic, Belgian, Dutch markets influence Spanish coastal demand.
  
  

• Regulatory changes: Any new short-term rental rules could affect investor demand (none announced as of writing, Dec 2025).

Overall, these risks are moderate and the region historically shows resilience due to its broad international buyer base.

Who Will Profit Most in 2026?

• Lifestyle buyers and retirees: Benefit from rising but still-accessible prices.
  
  

• Holiday rental investors: Strong occupancy + price growth = favorable environment.
  
  

• Buyers seeking modern/new builds: Limited supply suggests early purchase advantages.
  
  

• Sellers: Good time to list quality properties due to low competition.

Strategic Recommendations

For Buyers

• Secure mortgage pre-approval early; conditions may tighten.
  
  

• Move quickly on well-located coastal or renovated properties.
  
  

• Compare new-build vs resale to identify best value per m².
  
  

For Investors

• Prioritise properties close to beaches, amenities, and transportation.
  
  

• Focus on layouts suitable for rentals (2-bed units are top performers).
  
  

• Consider energy-efficient homes to attract longer-term tenants and EU buyers.
  
  

For Sellers

• Pricing realistically but confidently is effective in the current market.
  
  

• Modernization or presentation improvements can significantly boost returns.

2026 Outlook Summary

The Torrevieja and Southern Costa Blanca property market is positioned for a stable and positive 2026.

It is consistently backed by international demand, limited supply and strong rental performance, as seen over the last few years, and the region is expected to deliver 5-9% price growth and remain one of Spain's most accessible Mediterranean markets.

If you're looking for properties for sale in Costa Blanca , reach out to our experienced team today at Right Priced Real Estate.