In-depth Analysis of the International Luxury Property Buyer in Costa Blanca 2024/2025

The province of Alicante has established itself as a magnet for international real estate investment, especially in the luxury segment. Its enduring appeal is rooted in an enviable climate, high-quality infrastructure, and exceptional air connectivity. These features make it an ideal destination for both holiday stays and permanent residence.

The property market in Costa Blanca has shown remarkable resilience and sustained growth, largely driven by foreign buyer demand. Alicante is the leading province in property purchases by non-nationals in Spain. While the Spanish market overall saw a slight decline in 2023, foreign sales in Alicante recovered with a 1% increase in 2024, underscoring the area’s perceived investment security.

Volume and Evolution of Foreign Purchases

In 2024, Alicante registered 30,290 property sales to foreign buyers, a 1% increase compared to 2023. The province accounts for 43.8% of all provincial sales to foreigners in Spain, and nearly a quarter (25%) of all property purchases by international buyers nationwide were made in Alicante.

The impact of foreign demand is significant. At the national level, home sales to foreigners reached nearly 93,000 transactions in 2024, representing 14.6% of the total. In the Valencian Community, this figure rises to almost 29%.

Price Trends and Property Types

The average price of homes sold to foreign buyers in Alicante rose by 12% in 2024, reaching €198,180. Non-resident buyers, who often seek luxury properties, paid significantly higher prices (€2,895/m² in the first half of 2024) compared to resident foreigners (€1,734/m²) and Spanish nationals (€1,659/m²). This dynamic is especially favorable for the luxury housing sector.

Resale homes dominate the market (86% of foreign sales in Alicante in 2024), although new builds are gaining ground. The shortage of high-quality new developments in prime locations continues to drive prices upward.

Leading Nationalities in Property Purchases

The Costa Blanca market is defined by a rich diversity of buyer nationalities. Spanish buyers remain a pillar, representing 17% of purchases in 2024.

Top Nationalities by Volume in Alicante (2024):

Key Nationalities in the Luxury Segment:

• Germany: A consistent high-value segment, with 1,890 transactions in Alicante in 2024. Alongside Swiss buyers, they represent 40% of luxury buyers in areas like Dénia. They seek security, quality of life, and top-tier residential offerings.
• France: French buyers also purchase high-value homes in Alicante, solidifying their position as a stable market for the luxury sector.
• Romania: The Rise of a Strategic Buyer: Romanian buyers have become the second-largest group of resident foreign buyers in Spain during the first half of 2024, behind only Moroccans, with 4,700 transactions nationwide. Typically, they are residents driven by work or education, and tend to purchase properties in more urban areas.

Emerging and High-Value Nationalities:

The landscape is diversifying. Poland consolidated with 2,850 transactions in Alicante in 2024 and an average budget of €462,838. Ukraine, ranked sixth in Alicante in Q2 2024, stands out with a high average budget of €674,499 in 2024, making it a key player in the luxury segment. Other nationalities such as Netherlands, Belgium, Switzerland, Norway, United States, and—showing notable price increases—Belarus, Latvia, and Moldova, are also driving the high-value market.

Chart: Top Nationalities by Purchase Volume in Alicante (2024)

Motivations Behind Investment

Investment in Costa Blanca is driven by the combination of lifestyle quality and a refined luxury profile. The Mediterranean climate, with over 300 days of sunshine per year, is a major draw for a relaxed lifestyle. The trend of buyers choosing Costa Blanca as a permanent or long-term residence doubled in 2024, with 24% of foreign buyers residing year-round.

Costa Blanca is perceived as a stable market with appreciation potential—a “safe haven for capital.” The high demand for vacation rentals offers opportunities for passive income, with yields of up to 6–7% annually in the luxury segment.

Luxury buyers seek high-quality villas and penthouses with sea views, smart technology, infinity pools, and spacious gardens. Personalization and modern design are highly valued. The most exclusive areas include Dénia, Jávea, Moraira, Altea, Benissa, and Calpe.

Conclusions and Outlook

The Costa Blanca real estate market remains robust and attractive for foreign investment, with a growing emphasis on the luxury sector. Demand remains strong, with moderate volume growth and significant price increases driven by a shortage of high-quality supply. The diversification of buyers, including the rise of Eastern Europe and the United States, is expanding high-value opportunities.

Projections for 2025 are optimistic, with moderate price growth and increasing interest from digital nomads and remote workers. The luxury segment, with rising prices and sustained demand, is a strong indicator of overall market confidence and long-term stability.

References:

1. Idealista | Foreigners buying more homes than ever in Spain: Who's buying and where
2. El Confidencial | Foreign home purchases in Spain triple while local youth drop out
3. Información | Russians and Ukrainians buy nearly 2,700 homes in Alicante last year
4. CBRE | Growth of the luxury market in European real estate: Retail, Hotels and Housing