If you are thinking of buying in Spain, as an investment, a second home or to settle for good, this overview of the Costa Blanca market in 2026 and 2027 should help you decide with good information.
A solid market, not a bubble
The question many buyers and investors ask is whether a crisis like 2008 could happen again. The short answer is that it is very unlikely. Here is why.
In 2008 the collapse of Lehman Brothers set off a global financial crisis without precedent. Subprime, high-risk mortgages meant thousands of families lost their homes, and countries such as Spain needed financial rescues that weighed on the economy for more than a decade. According to the INE, Spain's national statistics office, it has taken 17 years for property prices to return to levels similar to those at the start of the century.
Why this time is different
Responsible lending:
- Today's mortgages are not high-risk
- Banks lend at most 80% of the valuation
- Lending criteria are much stricter
- Close to 40% of purchases are paid in cash
Real demand, not speculation:
- There is a strong need for homes, both main and second homes
- Interest from British, German, Polish and Eastern European buyers keeps growing
- Supply and demand are out of balance, but for structural reasons
2026 to 2027: moderate, steady growth
Our view is that the Spanish market will keep moving, with steady activity, prices still rising but tending to slow, financial stability and established international demand. The risks are unlikely: only exceptional events, such as a war escalating in Europe, a new pandemic or a global systemic crisis, could stop the market abruptly.
Why the Costa Blanca stands out
The province of Alicante is not just another Mediterranean destination. There are solid reasons it is one of the most sought-after areas in Spain.
The climate. Around 300 days of sun a year and an average temperature of 18°C give the Costa Blanca one of the mildest climates in Europe. That is weather data, not tourist promotion.
Connections and services. A modern network of motorways and dual carriageways, high-speed AVE trains to Madrid, Barcelona and other major cities, and Alicante-Elche Miguel Hernández international airport with direct flights across Europe. Good hospitals and health centres, international schools and universities, modern shopping centres and plenty of restaurants and leisure.
Blue Flag beaches. The Costa Blanca has many beaches with the Blue Flag award:
- Alicante: Postiguet, Saladar-Urbanova, Sant Joan, Tabarca
- Torrevieja: El Cura, La Mata, Los Locos, Los Náufragos, Cabo Cervera, Cala de las Piteras
- Benidorm: Levante, Poniente
- Dénia: Les Bovetes, Las Marinas
- Elche: Carabassí, Arenales del Sol
- Orihuela: Campoamor, La Zenia
A happiness index of 81 out of 100. According to the Spain Happy Index developed by Sonneil Homes, the Costa Blanca is one of the happiest areas in Spain, with 81 points out of 100. The index measures quality of life using data from the Ministry of the Interior and the State Meteorological Agency.
Torrevieja, the Costa Blanca's hidden gem
If you have heard that Torrevieja is an ageing resort with run-down properties, that picture is out of date.
Torrevieja in 2026 has more than 105,000 permanent residents. A walk along the seafront shows a very different reality from the myth: young families with children, teenagers and middle-aged couples, people from abroad working remotely, and older residents, no longer the majority, who bring experience and life to the town.
- 14 kilometres of beaches, several with the Blue Flag
- A fully renovated seafront promenade
- Buildings with restored facades in excellent condition
- New residential developments on the outskirts
- Modern shopping centres and hypermarkets
- A wide range of international restaurants
The big advantage: value for money
Here is Torrevieja's best-kept secret: the prices. Precisely because the town had that negative image for years, now out of date, home prices are still exceptionally competitive compared with other parts of the Costa Blanca with similar features. The result: Torrevieja leads the region in home purchases by middle-income buyers from abroad, thanks to its value for money.
So, should you buy on the Costa Blanca in 2026?
Yes, if you are looking for:
- A stable market without bubble risk
- An excellent Mediterranean quality of life
- Modern infrastructure and connections
- Competitive value for money, especially in Torrevieja
- Moderate but steady growth in value
- An established international community
- Around 300 days of sun a year
The Costa Blanca in general, and Torrevieja in particular, are an ideal choice if you are thinking of buying a holiday or a year-round home in 2026. Book a visit and we will go with you in person to see what is on the market.
First published in Spanish on 28 January 2026. Figures and rates are as they stood on that date; rules change, so check them for your own case.