The primary real estate market on the Costa Blanca (Alicante province, Spain) is one of the most dynamic segments of the housing market in the entire country. In 2025, new residential developments recorded a marked increase in prices, driven primarily by strong demand, limited land supply and rising construction costs. Data from the latest Idealista portal reports confirms that the primary market continues to grow, and the outlook for 2026 is moderately optimistic.
How did the price of new investments grow in 2025?
According to Idealista and an industry report on new housing in Spain, the primary market has seen significant price increases in 2025. In the province of Alicante, which encompasses the entire Costa Blanca, average prices of new developments rose by about 12% last year. This is one of the highest results in the country, placing the province among the top regions in terms of primary real estate market price growth.
This strong growth is due to several factors: continued interest in buying new apartments by Spanish and foreign buyers, limited availability of land for new projects, and rising costs of construction materials and labor. Designers and developers are increasingly challenged to complete new developments while remaining profitable, resulting in higher listing prices for new apartments.
Factors influencing the growth of primary market prices
The first factor is the high demand from buyers, including foreigners, who are looking for modern properties close to the sea. The Costa Blanca is attracting both buyers planning to live here permanently and investors who see value in properties that are new, well-equipped and comply with the latest energy standards.
The second factor remains the limited supply of construction land in attractive locations, especially in seaside towns. The hindered urban planning process and rising development costs translate into fewer new projects and higher prices. Developers often target higher-priced segments, further pushing up average rates.
Price forecasts for 2026
The outlook for the Costa Blanca’s primary real estate market in 2026 remains generally positive, although a moderate rate of price growth is expected compared to the dynamics of 2025. According to market analyses based on data from Idealista and other industry portals, new housing prices may continue to rise in 2026, but at a more subdued pace than in recent years.
Forecasts show that average prices of new investments may increase by about 5-8% in 2026. This scenario is due to the expected continuation of strong demand and further supply pressure – although it is difficult to predict spikes, the trend remains upward due to the limited number of new projects and attracting investors.
In practice, this means that while the rate of growth may slow down from the record 2025, the primary market still offers stable conditions for investors and buyers planning to purchase a new property, especially in prime Costa Blanca locations.
What does this mean for buyers?
For those considering buying primary market property on the Costa Blanca, the current situation has several key implications:
- Investment value: Buying a new property still has the potential for price appreciation, which can yield capital gains in the long term, especially if the investment is in a top location.
- Modernity and quality: New buildings often offer better energy standards, amenities and technology, which attracts buyers and can increase a property’s appeal in the future.
- Buying strategy: Due to the limited supply of the best designs, many experts advise considering early purchase at the pre-release stage, which can reduce costs compared to final bid prices.
Summary
The Costa Blanca’s primary real estate market in 2025 has seen a marked increase in prices – by an average of about 12% in the province of Alicante, according to Idealista. This growth was fueled by limited land supply, high construction costs and strong demand both locally and abroad. Projections for 2026 indicate that new housing prices will continue to rise, albeit at a more moderate pace than in previous years, with growth potential of 5-8%. This is a scenario that favors investment and underscores the Costa Blanca’s role as one of Spain’s most desirable housing markets.
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