BBVA Research forecasts Spanish property prices will rise 10.2% in 2026, following a 12.7% increase in 2025. On the Costa Blanca, growth of 7-9% is expected in the North and 5-7% in the South, driven by record foreign demand accounting for 43% of Alicante province sales and a structural coastal land shortage.
Spain’s largest bank has put a number on what many Costa Blanca buyers are already feeling on the ground: property prices are rising fast and show no sign of reversing. BBVA Research’s 2026 forecast of 10.2% national price growth, released in March 2026, adds authoritative weight to what local agents have been reporting throughout the year.
The Costa Blanca is not insulated from this national trend — it is leading it. Alicante province, which encompasses the entire Costa Blanca, already sees 43% of all property transactions completed by foreign buyers. That structural demand, combined with a near-total absence of available coastal building land, means price growth here is likely to outpace even the optimistic national forecast in prime locations.
This article unpacks the BBVA data, explains what it means for buyers at different budget levels, and identifies which Costa Blanca areas offer the best combination of growth potential and current value.
The BBVA Forecast: What the Numbers Show
BBVA Research’s forecast of 10.2% price growth in 2026 follows an exceptional 2025 that delivered 12.7% gains nationally. Average second-hand prices across Spain hit a record €2,673 per square metre at the end of 2025, representing the highest level since Spain’s property data has been systematically tracked.
The bank’s analysts cite three structural factors keeping prices elevated: demographic pressure from population growth of 400,000 people per year, persistently low housing supply with fewer than 100,000 new homes completed annually, and sustained demand from both domestic buyers and international investors.
For context, the €2,673/m² national average translates to an entry-level 70m² apartment costing around €187,000 at average Spanish prices. On the Costa Blanca, where coastal premiums apply, buyers should plan for prices above that level in most areas of interest.
Costa Blanca South: 5-7% Growth with Better Entry Points
The southern Costa Blanca — Torrevieja, Orihuela Costa, Guardamar del Segura, and the Vega Baja — is forecast to grow 5-7% in 2026. While this trails the northern premium market, it offers significantly better value for buyers with budgets under €300,000.
Torrevieja remains the transaction volume leader in Alicante province. New build apartments with two bedrooms and community pool can still be found from €180,000-€220,000 in accessible locations, offering both rental income potential and owner occupancy options. With a forecast 5-7% gain, a €200,000 purchase today could be worth €210,000-€214,000 by year end.
Orihuela Costa, encompassing La Zenia, Cabo Roig, Playa Flamenca, and Villamartín, shows strong demand from British and Dutch buyers seeking golf-adjacent new builds with good rental prospects. The area benefits from established infrastructure — shopping centres, medical facilities, and English-speaking services — that makes it immediately liveable for international buyers.
Why Foreign Demand Keeps the Costa Blanca Market Strong
The 43% foreign buyer share in Alicante province is not a temporary anomaly — it has been building steadily for a decade and shows no reversal in the data. Even as non-resident foreign purchases dipped slightly nationally in 2025 amid political uncertainty over the proposed 100% non-EU buyer tax, total foreign transaction volumes in Alicante remained resilient because resident expat purchases increased to compensate.
British buyers, despite post-Brexit complexities, remain among the most active foreign nationalities on the Costa Blanca. Dutch buyers have emerged as the second-largest group, overtaking Germans in Q4 2025, with 1,632 transactions representing 15% year-on-year growth. Scandinavian buyers — particularly Swedish and Norwegian — continue establishing both retirement homes and investment portfolios in the region.
This diversified international buyer base is a genuine strength for Costa Blanca values. No single nationality’s economic difficulties can derail the market because demand is spread across dozens of source markets. When one group pulls back, others typically absorb the slack.
What the Forecast Means for Your Buying Decision
The BBVA forecast has clear practical implications depending on where you are in the buying process. If you are still researching and comparing areas, the data suggests that waiting is likely to cost money. A €250,000 property in Costa Blanca North gaining 8% would be worth €270,000 by the end of 2026 — meaning a six-month delay could cost €20,000 before you have even considered rising mortgage costs.
If you are actively viewing properties, the current market rewards prepared buyers. Having your NIE number, a Spanish bank account, and pre-approval from a lender significantly shortens completion timelines and positions you to move quickly when the right property appears. Sellers in a rising market will favour serious buyers over those who need three months to get paperwork in order.
If you are investing for rental income, the combination of rising capital values and consistent rental demand creates a dual-return opportunity. Gross rental yields of 5-7% in the south, combined with 5-7% capital appreciation, produce total returns in the 10-12% range that are difficult to match with lower-risk asset classes in the current interest rate environment.
New build properties specifically benefit from one additional advantage in the current forecast: they are typically priced at 2025 levels when contracts are signed, but complete during 2026 or 2027 when prices will be materially higher. Off-plan buyers are effectively locking in today’s prices for tomorrow’s market.
The Bottom Line
The BBVA forecast confirms what buyers already sense on the Costa Blanca: this market is in a sustained growth phase driven by genuine structural demand. With 10.2% national growth forecast and Costa Blanca North leading at 7-9%, the case for buying sooner rather than later is grounded in data, not sentiment. Ready to explore Costa Blanca new builds? Browse our current selection of properties across both North and South, or speak to our team about which areas match your budget and investment objectives.
Explore further: Explore Moraira properties · Explore Torrevieja properties · Explore Alicante properties · Browse all new build properties
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