Demand from abroad is shaping the market in a way that has never been seen before. Credit: kallerna / Creative Commons
The Costa Blanca will still be a huge draw for British buyers who dream of Mediterranean sun and views of the sea in 2026. But the landscape of property purchase here is changing fast – from buyers and prices to taxes and regulations. Here’s everything you need to know before you sign the contract.
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The market is being shaped by foreign demand like never before
Foreign buyers continue to be a major force in Costa Blanca property transactions – especially in Alicante province, where over 43 per cent of homes sold were bought by foreign nationals in 2025. Costa Blanca is one of Spain’s largest housing markets.
Even though they are not the biggest spenders, British buyers continue to make up a significant portion of these transactions. Dutch buyers will overtake British buyers by early 2025 when it comes to the average amount spent per sale. UK buyers, on the other hand, continue to be very active, according to several Real Estate websites.
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Prices aren’t dropping – they’re climbing moderately
As of early 2026, the median price for a home on the Costa Blanca is around €280,000, with average prices closer to €360,000 when more expensive homes are included. The majority of homes on the market are apartments, followed by townhouses and villas.
Prime beachside towns like Calpe currently command some of the highest price tags – around €5,200 per m² – while more affordable options like Torrevieja sit near €2,300 per m².
Experts forecast a further 4 – 7 per cent rise in prices through 2026, especially in coastal and high-demand areas. The limited availability of new homes and land near the coast continues to drive up prices.
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Expect to pay extra for the product you purchase
Buying a property in Spain doesn’t stop at the asking price – there are significant additional costs that many first-time buyers underestimate:
Taxes & fees: They can add anywhere between 12 – 15% to the purchase price.
The cost of notary fees and land registry is required for the finalisation of ownership.
Even after you move into your new home, you will still have to pay annual property tax (IBI), and community fees.
These numbers aren’t just “nice to know” – budgeting for them early can prevent financial surprises later.
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Mortgages for foreign buyers are still available – but with conditions
Spain’s banks are continuing to offer mortgages for foreign buyers including Brits. The typical loan-to-value for non-residents is between 60 and 70 percent, so you’ll need to have a 30%-40% deposit on hand.
Interest rates have also shifted over recent years – though many lenders now offer competitive terms compared with past peaks. The more stable your financial situation and income, The more favorable your chances of getting a mortgage.
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Golden Visa is gone – but other residency paths remain
One big change for property buyers: Spain’s “Golden Visa” programme – which granted residency in exchange for property investments — ended in 2025. Many buyers made haste to complete their purchases before this deadline.
Property ownership does not automatically confer residency to British or non-EU buyers. The non-lucrative resident permit is still available, but requires separate requirements.
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Choose the right location – it makes all the difference
Costa Blanca does not behave in the same manner everywhere.
The international market is strong and prices are high in the most popular coastal towns, such as Denia, Javea and Calpe.
Torrevieja, for example, is a more affordable area that offers a lifestyle without compromising on price.
Days on market for well-priced homes in popular segments can be relatively short – 45 to 75 days – so move quickly when you find something you like.
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Competition is real – and growing
The supply of land for new developments near the coast is still limited. This means properties in desirable spots often sell quickly and can see significant competitive bidding – especially from international buyers.
Experts advise that buyers should have their finances in order and their legal documents sorted out before starting serious search.
British buyers: Practical advice before buying
Avoid costly mistakes
Hire an independent English-speaking attorney to review contracts and title documents.
Confirm rental licence status if you intend to let the property – short-term rental rules in the Valencia region are evolving and can affect income plans.
Get your NIE (Foreigner Identification Number) early – you can’t complete a purchase without it.
Costa Blanca still offers great lifestyle potential for British buyers in 2026 – from sunny beaches and affordable towns to solid demand and rental opportunities. With rising prices, fierce competition, and administrative changes, you may not want to wait too long.
Choosing the right area, understanding the costs and regulations, and preparing well are all important. Take these steps before you make the leap.
Costa News Spain Breaking News | English News in Spain.