Investing in Property on the Costa Blanca: 2026 Guide

Property investment in Spain continues to attract both domestic and international buyers. But successful property investment is not simply about buying in a popular coastal destination and expecting prices or rental income to rise.

A property investment should be assessed by looking at the purchase price, location, property type, rental demand, running costs, taxation, maintenance and the intended use of the property.

Costa Blanca South, particularly Torrevieja and Orihuela Costa, offers a wide range of properties, from apartments close to the sea to villas, bungalows, townhouses and new-build developments.

In this Elicasa guide, we look at the main factors to consider before investing in property in the area.

Why invest in property on the Costa Blanca?

The Costa Blanca combines several factors that may appeal to property investors.

Its climate, coastline, international population, airport connections, established services and broad range of residential properties create demand from permanent residents, second-home owners and different types of tenants.

Alicante is also one of Spain's leading provinces for international property buyers. In 2025, foreign buyers accounted for 51.53% of residential transactions in the province. In Torrevieja the figure reached 78.78%, while in Orihuela it was 81.1%.

This does not mean that every property is a good investment. It means that there is a substantial international market worth analysing carefully.

Torrevieja and Orihuela Costa: two nearby but different markets

Although they are geographically close, Torrevieja and Orihuela Costa offer different property markets.

Torrevieja combines urban life, beaches, year-round services and a broad range of resale and new-build properties.

Orihuela Costa has a more residential and tourism-oriented profile, with numerous developments, golf courses, beaches, restaurants, shopping and international communities.

Understanding these differences is essential for investors.

Investing in Torrevieja

Torrevieja offers opportunities for several investment strategies.

The town includes central areas with strong year-round services, coastal neighbourhoods and established residential communities with different property types.

In June 2026, the average asking price for residential property in Torrevieja was €2,558 per square metre, according to idealista, representing a 14.4% year-on-year increase. The average asking rent was €12.4 per square metre per month, up 7.7% year on year.

These are market averages and should not be interpreted as the actual return of an individual property. Investment performance depends on the purchase price, income and all associated costs.

Areas worth analysing

Torrevieja contains very different areas.

The town centre may appeal to investors looking for year-round services and an established resale market.

La Mata offers proximity to the beach and a more residential atmosphere.

Los Balcones and Los Altos provide a different profile, with larger homes and residential developments.

Aguas Nuevas offers a varied residential market with strong international appeal.

Playa del Cura, Los Locos, Acequión and other coastal areas may also offer opportunities depending on the property and rental strategy.

There is no universally “best” area for investment. The property itself must be analysed.

Investing in Orihuela Costa

Orihuela Costa is an especially diverse market because of its many residential developments and distinct areas.

Punta Prima, Playa Flamenca, La Zenia, Cabo Roig, Campoamor, Villamartín, Las Filipinas and Los Dolses all have different characteristics.

In June 2026, the average asking price in Orihuela Costa was €3,042 per square metre, while average asking rents reached €13.4 per square metre per month. Rental prices were up 12.2% year on year according to idealista.

Again, these market averages help us understand the market but cannot guarantee a particular return from an individual property.

Golf, beaches and international demand

One of Orihuela Costa's major attractions for certain investors is the combination of beaches, golf, restaurants, services and a strong international community.

However, even within Orihuela Costa there can be substantial differences between a property close to the sea, a home next to a golf course and a property in an inland residential development.

The exact location matters.

What type of property can be interesting for investment?

The question should not only be “Which area is best?” but also:

What type of property makes sense for my investment strategy?

Apartments

Apartments may be attractive when there is a strong combination of purchase price, location, community fees and rental demand.

A smaller well-located property may serve a very different market from a larger family home.

Bungalows and townhouses

These can appeal to families, international buyers and tenants looking for outdoor space, terraces and communal facilities.

Their rental potential will depend heavily on the development, location and property itself.

Villas

Villas can offer a higher-value product but usually require a larger initial investment and higher maintenance costs.

The purchase price, rental demand and ongoing expenses should all be considered.

New-build property

New developments may offer modern installations, better energy efficiency and lower initial maintenance requirements.

However, purchase price, completion times, costs and competing supply should also be included in the analysis.

Buy to rent or mixed personal use?

Not every investor has the same objective.

Some buyers want a property exclusively for rental.

Others want to use the property themselves for part of the year and rent it out when they are not using it.

Others buy with the intention of moving to Spain in the future.

Each strategy changes the financial analysis.

A property used partly as a second home should not be assessed exclusively through a rental yield calculation. Location, lifestyle, proximity to the sea and personal preferences may also be relevant.

A property bought primarily for investment requires a much stronger financial analysis.

How do you calculate property investment returns?

One of the first metrics to understand is gross rental yield.

A simplified formula is:

Gross yield = annual rental income ÷ total acquisition cost × 100

But this is only the starting point.

A more realistic analysis should include:

Purchase price

Not simply the asking price, but the final negotiated price.

Purchase taxes and costs

The initial investment should include all applicable taxes and transaction costs.

Community fees

Community charges vary significantly between buildings and residential developments.

Property tax

Annual property tax must be included in the financial model.

Insurance and maintenance

Insurance, repairs, maintenance and future refurbishment should also be considered.

Vacancy

A property will not necessarily be occupied every day of the year.

Management

Owners living outside Spain may require property management, maintenance and tenant support.

This is why an advertised 6%, 7% or 8% yield should never automatically be interpreted as the net return received by the investor.

What about taxation?

Taxation depends on the owner's circumstances, tax residence, use of the property and income generated.

Foreign property owners may have Spanish tax obligations relating to the property and to certain types of income.

Non-resident owners may also have specific reporting and tax obligations.

Before purchasing, it is therefore advisable to analyse the tax position with a professional who understands both Spanish rules and the buyer's country of tax residence.

Is Torrevieja or Orihuela Costa better for investment?

There is no universal answer.

Torrevieja may appeal to investors looking for an urban market, a wide range of properties and year-round services.

Orihuela Costa may be particularly attractive to international buyers looking for beaches, golf, residential developments and established international communities.

The decision should take into account:

• available budget;
• property type;
• rental strategy;
• personal use;
• maintenance costs;
• exact location;
• property condition;
• local demand;
• taxation;
• investment horizon.

Common property investment mistakes in Spain

Buying based only on price

A cheap property is not necessarily a good investment.

Confusing gross and net yield

Running costs can significantly reduce the actual return.

Ignoring the community of owners

Community fees, special assessments and building conditions can directly affect performance.

Failing to check the documentation

Ownership, charges, registration and planning matters should be reviewed before purchase.

Not studying local rental demand

Properties in the same municipality can have very different rental potential.

Assuming capital appreciation is guaranteed

Property markets change. No forecast should be treated as a guarantee of future price growth.

What should an investor check before buying?

Before making a decision, we recommend analysing at least:

The property

Size, condition, orientation, terrace, garden, pool, parking, views, energy efficiency and other characteristics.

The development

Community fees, communal facilities, maintenance, possible special assessments and internal rules.

The documentation

Ownership, charges, registration, planning documentation and any other relevant legal circumstances.

The market

Prices of comparable properties, achievable rents, current supply and local demand.

Taxation

Purchase taxes, possible tax on rental income, non-resident obligations and taxation in the buyer's country of residence.

The exit strategy

It is also worth considering how the property could be sold in the future and what type of buyer might be interested.

Investing with information: the Elicasa approach

At Elicasa, we believe a good property investment starts long before signing a purchase contract.

First, we need to understand the buyer's objective.

Then we analyse the area.

Next, we compare properties.

Finally, we review the numbers, documentation, taxation and risks before making a decision.

We work throughout Torrevieja and Orihuela Costa, two highly international markets with a wide range of areas and property types.

Our role is not to tell you that a property is a “safe investment”.

Our role is to help you determine whether a specific property makes sense for your objectives and under what conditions.

Thinking about investing on the Costa Blanca?

Tell us your budget, how you want to use the property and what type of return you are looking for.

At Elicasa, we can help you compare areas, analyse properties and coordinate the property and documentation side of the process before you make a decision.

Contact Elicasa and start by analysing the opportunity, not just the property.