As the third quarter of 2026 comes to a close, the Costa Blanca property market remains one of Spain’s most dynamic residential markets.
Prices continue to sit close to record levels in many of the Costa Blanca’s most desirable locations, international buyers remain a fundamental part of demand, and the shortage of quality properties in prime areas continues to influence pricing.
At the same time, the wider Spanish market is beginning to show signs of moderation. Transaction volumes have softened, affordability has become a greater challenge for domestic buyers, and price growth — although still strong — is beginning to slow from the exceptional rates recorded earlier in the year.
For buyers and investors, this creates a more nuanced market.
The Costa Blanca is not experiencing a simple property boom. Instead, we are seeing an increasingly selective market in which location, quality, scarcity and correct pricing matter more than ever.
This report reflects the latest information available at the end of September 2026. Final official Q3 transaction statistics have not yet been published, so the analysis combines the latest official quarterly data with more recent July and September market indicators.
Spanish residential property prices remain firmly in positive territory.
According to Spain’s National Statistics Institute (INE), the Housing Price Index increased by 12.2% year-on-year in Q2 2026, with prices also rising 3.4% compared with the previous quarter.
The strongest growth came from resale properties, which increased by 12.9% year-on-year, while new-build housing increased by 7.4%.
More recent analysis from CaixaBank Research points towards the beginning of a moderation in this growth.
The appraised value of free-market housing increased by 12.5% year-on-year in Q2, compared with 13.9% during Q1. On a quarterly basis, growth slowed to 1.7%. CaixaBank notes that this softer-than-expected figure creates downside pressure on its previous full-year 2026 price forecast.
This does not mean that property prices are falling.
Rather, the data suggests that Spain may be moving from exceptionally rapid price growth towards a more moderate phase.
One of the clearest changes during 2026 has been the evolution of transaction volumes.
Spain recorded 167,934 residential property transactions during Q2 2026, representing a 5.7% decline compared with Q1 and a 2.3% decline compared with the same period in 2025.
New-build transactions declined particularly strongly during the quarter, falling 11.5%, while resale transactions declined by 4%.
Preliminary July figures suggest that this trend continued into the beginning of Q3.
Approximately 60,500 residential transactions were registered across Spain in July, representing a 7.7% year-on-year decline. Mortgage registrations on residential property also decreased by approximately 4.2%.
This is an important development for buyers.
A reduction in transactions does not automatically translate into falling prices. Instead, it may indicate that buyers are becoming more selective as affordability becomes more challenging and asking prices remain high.
The Costa Blanca remains unusual within the Spanish property market because of the extraordinary importance of international demand.
During Q2 2026, foreign buyers represented 46.43% of residential purchases in Alicante province, compared with 15.98% nationally.
That made Alicante the Spanish province with the highest proportion of foreign property buyers.
This distinction is essential when analysing the Costa Blanca.
Almost half of the provincial market is influenced by international purchasers whose budgets, financing structures and reasons for buying may be very different from those of the average Spanish household.
Some buyers are relocating permanently. Others are purchasing second homes, planning retirement in Spain or combining personal use with investment objectives.
Many international buyers are also less dependent on Spanish mortgage financing.
As a result, changes in domestic mortgage affordability do not necessarily affect Costa Blanca North in the same way as they affect more domestically driven residential markets.
As Q3 draws to a close, asking-price indicators continue to show considerable strength.
In September 2026, the average asking price across Alicante province stands at approximately €2,846/m², representing an increase of 8.7% compared with September 2025.
The provincial average, however, tells only part of the story.
Costa Blanca contains very different property markets, ranging from inland towns and traditional Spanish cities to some of the Mediterranean coast’s most established luxury residential destinations.
For an international buyer, municipality — and increasingly the individual micro-location within that municipality — can therefore matter considerably more than the provincial average.
Jávea continues to demonstrate the strength of prime Costa Blanca North.
September 2026 asking-price data places the average value at approximately €4,137/m², around 8.3% higher than a year earlier.
However, even within Jávea there are considerable differences.
Prime locations command significantly higher prices than the municipal average. The Puerto area, for example, is currently around €5,050/m², illustrating how proximity to the sea, walkability and limited availability can create substantial premiums.
This is precisely why €/m² should never be used in isolation when valuing a villa in Jávea.
Sea views, plot orientation, privacy, condition, construction quality, outdoor areas and the ability to walk to the beach or amenities can create very different valuations between properties that appear similar on paper.
Moraira continues to command some of the highest asking prices in Alicante province.
In August 2026, average asking prices reached approximately €4,509/m², representing annual growth of 6.1%.
By September, broader valuation data placed Moraira at around €4,635/m², making it the most expensive municipality in Alicante province within that dataset.
Moraira’s pricing reflects characteristics that are difficult to replicate: limited geography, established international demand, attractive coastline and a relatively restricted supply of well-positioned villas.
For investors, scarcity is an important concept.
It does not guarantee future appreciation, but properties with characteristics that cannot easily be reproduced tend to remain particularly attractive when buyers become more selective.
Dénia presents a somewhat different proposition.
It combines an established Spanish city, marina, beaches, year-round population, gastronomy, transport connections and strong international demand with prices that remain below those of Jávea and Moraira.
Average asking prices reached approximately €3,348/m² in August 2026, an increase of 8.8% year-on-year.
For international buyers looking beyond the traditional luxury villa market, Dénia therefore continues to offer an interesting combination of lifestyle, year-round activity and comparatively lower entry prices.
Areas such as Las Rotas, La Marineta Cassiana and properties close to the marina operate at very different price levels from the municipal average, however, making local analysis essential.
Perhaps the most important development in Q3 is not a single percentage.
It is the changing behaviour of buyers.
After several years of strong price growth, international purchasers are increasingly informed. They compare properties carefully, understand asking prices across different municipalities and expect quality to correspond with price.
This is healthy for the market.
Properties in strong locations, presented correctly and realistically priced continue to attract interest.
Properties whose asking prices have moved significantly ahead of their underlying quality may take longer to sell.
This distinction is likely to become increasingly important as the market matures.
The appeal of Costa Blanca remains broader than property prices alone.
The region offers more than 300 days of sunshine in many locations, extensive coastline, international schools, marinas, golf courses, excellent gastronomy and relatively easy access to major European cities through Alicante and Valencia airports.
Remote and flexible working have also changed the way many international buyers view a second home.
A property that may once have been used primarily during summer can increasingly become a residence for several months of the year.
This supports demand for homes designed for year-round living: good insulation, heating and cooling systems, home offices, high-speed internet, outdoor living spaces, privacy and easy access to everyday services.
In the premium segment, buyers are becoming increasingly focused on quality rather than simply size.
Turnkey properties remain particularly attractive because international buyers often prefer to avoid lengthy renovations from abroad.
Energy efficiency, solar installations, underfloor heating, modern climate systems, quality windows and good insulation are also becoming more important.
At the same time, traditional Mediterranean architecture remains highly desirable when it has been renovated sympathetically.
Properties combining natural stone, tosca arches and established gardens with modern kitchens, bathrooms and energy-efficient installations can offer something that new construction cannot easily reproduce.
Outdoor living remains fundamental.
Swimming pools, covered terraces, summer kitchens, outdoor dining areas and seamless connections between interior and exterior spaces are no longer viewed simply as extras in the premium Costa Blanca market — they form part of the lifestyle buyers are purchasing.
The current market remains favourable for owners of quality properties, but realistic pricing is becoming increasingly important.
The strong increases recorded over recent years can sometimes lead sellers to assume that virtually any asking price will eventually be achieved.
That is not necessarily the case.
Buyers have access to significantly more market information than they did a decade ago. Overpriced properties can remain online for extended periods, eventually requiring reductions and losing the initial impact of entering the market.
A professional valuation should therefore consider much more than average €/m².
Condition, location, orientation, views, plot characteristics, privacy, legal status, comparable properties and recent market activity all influence achievable value.
For buyers, a more selective market can create opportunities.
The objective should not necessarily be to find the cheapest property.
It should be to identify the strongest combination of property, location and price.
A well-located home with characteristics that will remain desirable to future international buyers may justify a higher acquisition price than a cheaper property with compromises that will also affect its eventual resale.
Investors should also distinguish between capital appreciation and rental returns.
Properties intended for rental require additional analysis of licensing, seasonality, operating costs, taxation, maintenance and the applicable rental regulations.
The headline purchase price is only one part of the investment calculation.
As we enter the final quarter of the year, several factors will be worth watching.
The first is whether transaction volumes across Spain continue to moderate.
The second is whether price growth continues to slow after the exceptionally strong increases recorded during the first half of 2026.
The third — and particularly important for Costa Blanca — is whether international demand continues to offset some of the affordability pressures affecting domestic buyers.
Supply also remains a fundamental issue. CaixaBank Research notes that new housing supply continues to lag household formation, meaning Spain has not yet resolved the structural imbalance between the creation of new households and available housing.
For prime Costa Blanca locations, where developable land and genuinely exceptional positions are naturally limited, this remains particularly relevant.
Q3 2026 closes with a market that remains strong, international and increasingly selective.
Prices across Alicante province remain considerably higher than a year ago. Jávea and Moraira continue to operate firmly within the premium segment, while Dénia offers a different combination of lifestyle, year-round infrastructure and relative value.
At the same time, falling transaction volumes nationally remind us that no market rises indefinitely at the same pace.
For us, that makes professional property selection and realistic valuation more important — not less.
The strongest opportunities are increasingly found by looking beyond headline statistics and understanding the individual property: its micro-location, scarcity, quality, legal position, price and future buyer profile.
At La Boutique Luxury Real Estate SL, we believe true luxury lies in the details — exceptional homes, personalised service, innovation and care.
Specialising in exclusive real estate across the Costa Blanca and Balearic Islands, we help international buyers and sellers navigate the market with local knowledge, transparency and a clear understanding of what creates long-term property value.
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