Spain Property Market Outlook 2026: Why Prices Keep Rising in Costa Blanca
Spain’s property market continues to attract international buyers, lifestyle movers, and long-term investors. As we move through 2026, one key question dominates buyer interest: which areas and property types are expected to appreciate most in Costa Blanca?
Based on Bankinter’s latest forecasts, transaction trends, and buyer behaviour, clear patterns are emerging. Understanding these trends can make a real difference for both lifestyle buyers and investors looking to secure value. Bankinter has revised its house price growth projections upwards:
- 2025: 12% (previously 8%)
- 2026: 7% (previously 4%)
- 2027: 4%
This means Spain, and particularly high-demand regions like Costa Blanca, is likely to see at least two more years of solid price growth.

Why Prices Keep Rising
Several factors are driving continued growth:
- High Demand & Investor Interest – Both international buyers and domestic investors remain eager to purchase properties in Costa Blanca’s prime locations.
- Limited Supply – New housing supply is constrained by planning restrictions, creating structural pressure on prices.
- Strong Employment & Financing – A healthy labour market and accessible mortgages support ongoing buyer activity.
- Rising Rents – Increasing rental costs encourage households to buy rather than rent, further boosting demand.
Where Growth Is Strongest in Costa Blanca
Price increases in 2026 are expected to be most pronounced in Costa Blanca coastal towns and nearby cities, where demand from both lifestyle buyers and international investors remains high. Key areas include:
- Alicante city – vibrant urban living, excellent amenities, and strong rental demand
- Benidorm and Torrevieja – popular coastal towns with high tourism appeal and investment potential
- Jávea, Moraira, and Calpe – sought-after towns with scenic coastlines, premium properties, and a strong expat community
These locations combine coastal lifestyle, convenient amenities, and high foreign interest, helping maintain strong price momentum and solid investment potential in 2026.
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