COSTA BLANCA & COSTA CÁLIDA PROPERTY MARKET REPORT

FIRST QUARTER 2026

Executive Summary

44.65%

Almost one in every two homes sold in Alicante province is purchased by a foreign buyer.

Meanwhile, buyers from Asia already represent 6.48% of all international property purchases in Spain, confirming that demand for Spanish real estate is becoming increasingly global.

At the same time, Spanish property prices reached a new all-time high of €2,429 per square metre. Despite several years of rising prices, transaction volumes remain close to their highest levels since 2007, highlighting the continued strength of both domestic and international demand.

The first quarter of 2026 also saw Dutch buyers overtake German buyers as the second-largest foreign buyer group in Spain, further reinforcing the growing importance of Northern European demand in key residential markets such as Costa Blanca North.

These developments suggest that Spain's property market continues to be supported by genuine demand, population growth, lifestyle migration and a persistent shortage of quality housing rather than speculative activity.

For Costa Blanca and Costa Cálida, the message remains clear: international demand continues to strengthen, property prices continue to rise and the long-term fundamentals of the market remain exceptionally robust.

Executive Dashboard

Six Key Takeaways

✓ Spanish property prices reached a new all-time high.

✓ Alicante, including Costa Blanca, remains one of Europe's most international residential property markets.

✓ Málaga Province, including the Costa del Sol, shows exceptionally strong international demand, with foreign buyers representing 34.30% of all residential purchases.

✓ Dutch buyers overtook Germans as the second-largest foreign buyer group in Spain.

✓ Mortgage activity continues to increase, supporting domestic demand.

✓ Costa Blanca North and Costa del Sol remain among Spain's most attractive residential investment markets.

Market Overview

The Spanish property market remains exceptionally resilient. During the first quarter of 2026, 178,096 homes changed hands, maintaining activity levels close to those seen during Spain's strongest property cycles of the past two decades.

More importantly, transaction activity remains strong despite continuously rising prices. The average property price reached a record €2,429 per square metre, representing annual growth of 8.9%.

Property prices have now increased from €2,226 per square metre in Q1 2025 to €2,354 per square metre in Q4 2025 and €2,429 per square metre in Q1 2026. This steady upward trend reflects a market supported by genuine demand rather than short-term speculation.

New-build homes continue to outperform the wider market. Modern, energy-efficient properties remain particularly attractive to both domestic and international buyers seeking lower maintenance costs, improved sustainability and higher levels of comfort.

The mortgage market also continues to strengthen. A total of 133,618 residential mortgages were granted during Q1 2026, representing a significant increase compared to the same period last year. The average mortgage amount reached a new record level, while fixed-rate mortgages remain the preferred option for most buyers.

Unlike previous market cycles, today's demand is driven by a broad mix of owner-occupiers, retirees, second-home buyers, remote workers and long-term investors. This diversification creates a healthier and more balanced market environment.

International Demand

Foreign demand remains one of the strongest pillars supporting the Spanish property market.

Nationally, foreign buyers accounted for 13.92% of all residential purchases during Q1 2026. While this figure remains impressive on a national level, the Mediterranean coast continues to outperform the rest of the country by a substantial margin.

Foreign Demand by Region

Alicante continues to stand out as Spain's leading international property market. With almost one in every two homes purchased by foreign buyers, the province benefits from a level of international demand rarely seen elsewhere in Europe.

The appeal of Alicante Province extends far beyond climate alone. Buyers are attracted by the region's accessibility, healthcare system, international schools, infrastructure, lifestyle and relative value compared to other European coastal destinations.

International demand is also becoming increasingly diversified. While European buyers remain dominant and account for 58.31% of all foreign purchases, demand from other regions continues to increase.

Asian buyers now represent 6.48% of all foreign purchases in Spain. Although still a relatively modest share of the market, the trend demonstrates that Spain's appeal is expanding beyond its traditional Northern European buyer base and becoming increasingly global.

Foreign Buyers by Global Region

Top Foreign Buyer Nationalities

Why Today's Market Is Different

One of the questions we are asked most frequently is whether the current property market resembles the period leading up to the financial crisis of 2008.

While no market is immune to future corrections, the underlying fundamentals of today's market appear significantly different.

During the years preceding the financial crisis, large parts of the market were driven by speculative buying, excessive mortgage loans and an oversupply of new developments. Current market conditions present a very different picture.

Today's demand is supported by a broad mix of buyers including owner-occupiers, retirees, second-home buyers, remote workers and long-term investors. In addition, a significant proportion of international buyers purchase with substantial equity rather than relying heavily on mortgage financing.

At the same time, demand continues to exceed supply in many of Spain's most desirable coastal locations. The shortage is particularly visible in the market for modern, energy-efficient and move-in ready homes.

Several key indicators continue to support the long-term outlook:

• Property prices continue to rise while transaction volumes remain historically high.

• Mortgage activity is increasing, indicating confidence among domestic buyers.

• International demand remains exceptionally strong, particularly in coastal regions.

• Population growth and lifestyle migration continue to support housing demand.

• Supply of quality homes remains limited in many prime locations.

Taken together, these factors suggest a market that is being driven primarily by genuine demand rather than short-term speculation.

Dutch Buyers Overtake Germany

One of the most notable developments during the first quarter of 2026 was the continued rise of Dutch demand.

For the first time in recent years, Dutch buyers overtook German buyers to become the second-largest foreign buyer group in Spain.

This trend is particularly relevant for Costa Blanca North, where Dutch-speaking buyers have long represented one of the most active groups in the market.

The continued growth of Dutch demand reflects several broader trends, including lifestyle migration, remote working opportunities, retirement planning and the search for long-term wealth preservation through property ownership.

For the Costa Blanca market, this development reinforces the region's position as one of the preferred destinations for Northern European buyers.

Costa Blanca North & Costa del Sol

The strongest international demand continues to focus on Spain's premium coastal locations.

Costa Blanca North remains one of Southern Europe's most attractive luxury property markets. Locations such as Altea, Altea Hills, Moraira, Benissa Costa and Jávea continue to attract buyers seeking lifestyle, privacy, sea views and long-term value.

The region benefits from a unique combination of natural beauty, excellent infrastructure and an established international community. For many buyers, Costa Blanca North offers an attractive balance between quality of life and long-term value preservation.

The most sought-after properties are modern, move-in ready homes featuring outdoor living areas, private pools, sea views and energy-efficient systems. Demand remains particularly strong for properties that require little or no renovation.

At the same time, Marbella and Estepona continue to strengthen their position within Spain's ultra-luxury segment. While Costa Blanca North typically attracts buyers in the €1 million to €5 million range, Costa del Sol increasingly attracts transactions above €5 million.

Both regions continue to benefit from strong international demand and limited supply of high-quality properties. Together, they remain among the strongest-performing residential property markets in Southern Europe.

nardia real estate agency: Market Insight

While national statistics provide valuable context, daily market activity often reveals trends before they become visible in official reports.

Across Costa Blanca North, we continue to observe the strongest demand for modern, move-in ready homes in established residential areas.

Buyers increasingly prioritise:

• Energy-efficient properties

• Privacy and outdoor living space

• Sea views

• Walking or cycle distance to services / shops

• Low-maintenance homes

• High-quality finishes

Properties that combine these characteristics continue to attract strong interest and often sell considerably faster than homes requiring significant renovation.

At the same time, buyers remain selective and increasingly well informed. The strongest-performing properties are not necessarily the cheapest, but those that offer the best combination of location, quality and long-term usability.

This trend is expected to continue throughout the remainder of 2026.

Outlook 2026

Our outlook for the remainder of 2026 remains positive.

Several structural drivers continue to support the market:

• Strong international demand

• Population growth

• Continued lifestyle migration

• Increasing mortgage activity

• Limited supply of quality housing

• Strong demand for energy-efficient homes

• Continued interest from investors and second-home buyers

Although affordability is becoming more challenging in certain areas, current market conditions remain fundamentally healthy. Rising prices continue to be supported by genuine demand rather than speculative activity.

The combination of historically strong transaction volumes, increasing mortgage activity and record property prices indicates that confidence in the Spanish residential market remains high.

For Costa Blanca and Costa Cálida, we expect international demand to remain one of the primary drivers of market activity throughout the remainder of the year. Alicante's position as Spain's most international property market continues to provide a strong foundation for future growth.

Based on current market conditions, we expect demand for quality homes in prime locations to remain resilient throughout the remainder of 2026. For both homeowners and long-term investors, the Spanish residential market continues to offer attractive opportunities supported by strong underlying fundamentals.

About this Blog Post:

The information used in this Blog Post is freely available on the website of the Spanish Property Registry, National Institute for Statistics (INE).

The figures used in this report include registered residential property transactions, average property prices per square metre, foreign buyer participation, buyer nationalities, regional foreign demand and residential mortgage activity.

The data has been interpreted and summarised by nardia real estate agency with a focus on the Costa Blanca, Costa Cálida and selected prime coastal markets in Spain like the Costa del Sol. Where relevant, the report also includes market observations based on nardia real estate agency's daily contact with international buyers, sellers, developers and property investors across Costa Blanca North and surrounding regions.

This market update of the first quarter of 2026 for the Spanish Property Market has been written by Tom Bruijnzeel. He is the author of this informative blog post about the Spanish Real Estate Market and other articles and property market reports on our website. Tom has a master degree in Law from the University of Rotterdam (the Netherlands), holds a bachelor degree in Business and Economics and is fluent in Spanish, French, English and Dutch with full business proficiency in German. In 2013 he started nardia real estate agency in Spain. The website www.nardia.es is available to all who are thinking of investing in a property in Spain or already own a property and have questions about property tax in Spain, the correct registration of a property in Spain or the taxes due when selling a house in Spain.

If you want to connect via Linkedin: linkedin.com/in/tombruijnzeel