Costa Blanca North Residential Market Report | Mid-Year 2026 • Edition 1

Real Estate Market Intelligence & Investment Advisor
Costa Blanca · Spain

Prices • Transactions • Market Momentum

Executive Summary

Costa Blanca North remains one of Spain’s most resilient residential markets. But the market is becoming increasingly selective.

The residential market across Costa Blanca North entered the second half of 2026 from a position of strength. Record asking prices, sustained international demand and limited housing supply continue to support values across much of the region. Yet, beneath these headline figures, market conditions are becoming increasingly diverse.

The strongest municipalities continue to outperform.

Moraira (€4,673/m²) and Jávea/Xàbia (€4,118/m²) remain firmly positioned among Spain’s leading premium residential markets. Altea (€3,640/m²), Finestrat (€3,423/m²) and Dénia (€3,417/m²) continue to show healthy pricing supported by sustained buyer demand, while Alicante City has reached a new historic high, with Playa de San Juan – El Cabo de las Huertas consolidating its position as the city’s premium residential district at €3,694/m².

The broader market also remains robust. Alicante Province (€2,834/m²) now slightly exceeds the Spanish average (€2,823/m²), underlining the province’s growing importance within the national residential market.

Recent figures published by the Spanish General Council of Notaries show that residential transactions have begun to slow while average prices continue to increase. Rather than signalling weakening demand, this increasingly reflects a market constrained by limited supply. Fewer properties are changing hands, yet competition for well-located, high-quality homes remains strong, particularly along the northern Costa Blanca.

This report therefore goes beyond traditional price analysis.

Market Momentum Index

Alongside asking prices and modelled transaction values, it introduces the Market Momentum Index (MMI 1.0), a proprietary analytical indicator developed by Panea Scheffer. Rather than measuring price alone, the MMI evaluates the relative dynamism of each residential market, combining recent price evolution with transaction activity, financing conditions, supply pressure and each market’s position relative to its historic price peak.

Its purpose is simple: to help buyers, sellers and investors better understand where each market is heading, not simply where it stands today.

Key takeaways

Costa Blanca North remains fundamentally supply-driven. Limited availability of quality housing continues to support prices despite softer transaction volumes.
Market performance is becoming increasingly local. Premium coastal municipalities continue to outperform, while secondary coastal and inland markets are beginning to follow different market cycles.
The gap between asking prices and underlying market dynamics is widening. Understanding transaction activity, financing conditions and available supply has become increasingly important when assessing market strength.
The Market Momentum Index (MMI) adds a new analytical dimension. By combining price evolution with broader market indicators, it provides a more complete picture of residential market dynamics than price analysis alone.

This publication represents the first edition of the Panea Scheffer’sMarket Intelligence “Costa Blanca North Residential Market Report”.

It also marks the introduction of MMI 1.0, the first version of a proprietary analytical framework that will continue to evolve as additional municipality-level datasets become available.

Future editions will progressively incorporate more granular information on transaction activity, housing supply and other structural market indicators, while maintaining methodological consistency to ensure meaningful comparisons over time.

Better decisions begin with better market intelligence.

1. A Market in Transition

Fewer Transactions. Higher Prices. A Market Becoming More Selective.

At first glance, Spain’s residential market appears stronger than ever.

Average asking prices continue to reach new historic highs across much of the country, with Alicante Province now slightly outperforming the national average. Premium municipalities along Costa Blanca North remain among the strongest-performing residential markets in Spain, supported by sustained international demand and a limited supply of quality homes.

Yet recent market data reveal a more complex picture.

According to the latest figures published by the Spanish General Council of Notaries, residential transactions declined by 10.2% year-on-year in April 2026, while mortgage lending also softened.

At the same time, average transaction prices continued to increase, rising by 9.4% nationally and by 16.2% in the Comunitat Valenciana.

At first sight, these trends appear contradictory.

In reality, they describe a market that is not weakening, but becoming increasingly selective.

Demand remains broadly resilient, particularly across internationally driven coastal markets. However, the supply of well-located, correctly priced residential property has become progressively more limited. As a result, fewer homes are changing hands, while those that do reach the market continue to command strong prices.

This distinction is particularly relevant in Costa Blanca North.

Unlike more homogeneous residential markets, Costa Blanca North consists of a collection of micro-markets, each responding differently to international demand, local supply, financing conditions and buyer profiles. Moraira does not behave like Alicante City. Jávea follows a different cycle from El Campello. Inland municipalities such as Jalón respond to yet another set of market drivers.

Treating these markets as if they formed a single residential area inevitably oversimplifies reality.

Understanding where prices are rising is therefore no longer sufficient.

Understanding why they are rising, and whether those conditions are strengthening or weakening, has become equally important.

That is precisely the objective of this report.

Rather than simply presenting asking prices, it seeks to place them into context by combining price evolution with broader indicators of market activity, financing conditions and supply dynamics.

The result is a more complete view of residential market behaviour: one designed to support better-informed decisions by buyers, sellers and investors alike.

Figure 1 – Market at a glance

Indicator	Latest reading	What it tells us
Spain – Average asking price	€2,823/m²	New historic high
Alicante Province – Average asking price	€2,834/m²	Now above the national average
National residential transactions	-10.2% YoY	Market activity moderating
National average transaction price	+9.4% YoY	Prices continue to rise
Comunitat Valenciana transaction price	+16.2% YoY	One of Spain’s strongest regional performances
Overall interpretation	—	Supply remains the principal constraint on the market.

2. Spain in Context

A national market that continues to outperform expectations

Spain’s residential market continues to demonstrate remarkable resilience despite a less favourable financing environment and a gradual slowdown in transaction activity.

By June 2026, the national average asking price had reached €2,823/m², the highest level ever recorded by Idealista.

Although mortgage costs remain above the exceptionally low levels experienced only a few years ago, demand has continued to absorb the limited supply available across many parts of the country.

This resilience is not solely the result of domestic demand.

International buyers continue to play an increasingly important role in many of Spain’s coastal markets, while structural factors such as limited new housing supply, rising construction costs and demographic changes continue to support residential values.

The latest data published by the Spanish General Council of Notaries illustrate this changing market environment.

Residential transactions declined by 10.2% year-on-year during April 2026, while mortgage lending also contracted. Nevertheless, average transaction prices continued to rise by 9.4%, confirming that price growth is currently being driven more by constrained supply than by expanding demand.

The Comunitat Valenciana remains one of the strongest-performing regions in Spain

Average transaction prices increased by 16.2% compared with the previous year, significantly outperforming the national average. This reinforces the region’s position as one of Spain’s most attractive residential markets, particularly for international buyers seeking second homes, retirement properties and lifestyle investments.

Within this regional context, Alicante Province has become one of the country’s standout performers.

Alicante province’s average asking price of €2,834/m² now slightly exceeds the Spanish average, confirming the province’s transition from a traditionally affordable destination into one of Spain’s most dynamic residential markets.

This broader national backdrop provides the framework for understanding what is happening at local level.

While national trends remain important, residential markets increasingly evolve according to local supply, international demand, planning constraints and property mix. For this reason, analysing municipalities individually has become considerably more meaningful than relying exclusively on provincial or national averages.

Figure 2 – Spain at a glance

Indicator	Spain	Alicante Province
Average asking price	€2,823/m²	€2,834/m²
Historic high	Yes	Yes
Annual asking price growth	15.8%	10.3%
Residential transactions	-10.2%	Moderating*
Average transaction price	+9.4%	Above national trend
Overall assessment	Strong	Very Strong

*Provincial transaction trends broadly follow the national slowdown, although the impact varies significantly between municipalities.

Interpretation

The data suggest that Spain is entering a more mature phase of the current residential cycle.

The rapid post-pandemic expansion appears to be giving way to a more selective market in which location, property quality and scarcity increasingly determine performance.

For buyers and investors, broad national averages are therefore becoming less useful.

Understanding which markets continue to outperform, and why, is likely to be far more valuable than simply knowing that prices continue to rise.

3. Costa Blanca North

One coastline. Multiple markets.

Costa Blanca North is often perceived as a single residential market.

In reality, it is a collection of distinct micro-markets, each shaped by its own combination of international demand, local supply, planning constraints, accessibility and housing stock.

From Alicante to Dénia, average asking prices almost double. Buyer profiles vary significantly between municipalities, as do the balance between permanent residents and second-home owners, the availability of new development and the proportion of international purchasers.

For this reason, analysing Costa Blanca North as a single market inevitably masks important differences.

Some municipalities continue to experience strong upward momentum, supported by sustained demand and limited supply. Others have entered a more balanced phase, where prices remain firm but growth is becoming increasingly moderate.

Understanding these differences is essential for buyers, sellers and investors alike.

A municipality with a lower average price is not necessarily a better opportunity, just as a higher-priced market is not automatically overheated. What matters is the relationship between pricing, demand, available supply and market momentum.

Figure 3 – Costa Blanca North asking prices

Municipality	Asking Price €/m²	Est. Transaction Price €/m²	Historic High	MMI
Moraira	4,673	4,439	✓	📈
Jávea / Xàbia	4,118	3,912	✓	📈
Altea	3,640	3,458	✓	📈
Calpe	3,567	3,389	✓	➡️
Finestrat	3,423	3,252	✓	➡️
Dénia	3,417	3,246	✓	📈
El Campello	3,294	3,129	Near historic high	➡️
Alicante City	2,575	2,189	✓	➡️
Jalón / Xaló	2,271	2,157	Below historic high	⚠️

Market observations

Premium markets continue to lead.

Moraira and Jávea/Xàbia remain the highest-priced municipalities within Costa Blanca North. Their performance continues to be driven primarily by international demand, limited prime stock and the scarcity of development opportunities in consolidated residential areas.

Altea confirms its resilience.

Altea combines strong pricing with one of the most balanced market profiles in the region. Unlike some premium markets, demand remains diversified across permanent residents, second-home buyers and international purchasers.

Alicante City continues to strengthen.

The provincial capital has reached a new historic high, supported by urban regeneration, improving residential quality and sustained demand in premium districts such as Playa de San Juan and El Cabo de las Huertas.

Secondary markets are becoming more selective.

Calpe, El Campello and, to a lesser extent, Finestrat continue to perform well, although recent price movements suggest a gradual transition towards more balanced market conditions after several years of exceptionally strong growth.

Inland markets follow a different cycle.

Jalón illustrates how inland municipalities respond to different market drivers. Prices remain significantly below the coastal premium markets and recent growth has moderated, reflecting a buyer profile less dependent on international second-home demand.

What this means

Costa Blanca North is no longer moving as a single residential market.

Instead, each municipality is increasingly following its own cycle.

For buyers, this means opportunities are becoming more local and more property-specific.

For sellers, realistic pricing and a clear understanding of local demand have become increasingly important.

For investors, comparing municipalities solely on price is no longer sufficient. Understanding relative market momentum provides a much stronger basis for identifying both opportunities and potential risks.

4. Market Spotlight

Four markets. Four different stories.

Although Costa Blanca North is often viewed as a single destination, its municipalities are evolving at different speeds and for different reasons.

The following four markets illustrate how residential dynamics are becoming increasingly local.

Moraira, where scarcity remains its greatest asset.

Moraira continues to represent the premium end of the Costa Blanca North residential market.

With an average asking price of €4,673/m², it remains the highest-priced municipality included in this report.

Unlike many other destinations, Moraira’s strength is not driven by rapid expansion but by structural scarcity.

Strict planning constraints, limited development land and consistently strong international demand continue to support values, particularly for detached villas in established residential areas close to the coastline.

Price growth is therefore increasingly driven by the quality and rarity of available stock rather than by volume.

This makes Moraira one of the region’s most resilient residential markets.

Altea: The region’s most balanced market.

Altea combines many of the characteristics associated with premium residential destinations while maintaining a broader and more diversified buyer base.

Demand comes not only from international second-home purchasers but also from permanent residents, lifestyle buyers and domestic purchasers seeking larger primary residences.

This diversity contributes to greater market stability.

Rather than experiencing sharp fluctuations, Altea has shown consistent price appreciation across different market cycles, making it one of Costa Blanca North’s most balanced residential markets.

Alicante city: A urban market gaining momentum.

While much attention is often focused on coastal resort towns, the provincial Capital continues to strengthen its position as a residential destination in its own right.

The city reached a new historic high during the first half of 2026, reflecting sustained demand, urban regeneration and continued investment in residential neighbourhoods.

Premium districts such as Playa de San Juan – El Cabo de las Huertas continue to outperform the city average, while improved public spaces, services and transport connections have broadened Alicante’s appeal beyond its traditional second-home market.

Increasingly, Alicante attracts buyers seeking year-round living rather than purely seasonal use.

Jalón brings a useful reminder that not every market follows the coast.

Jalón offers an important contrast to the premium coastal municipalities.

With an average asking price of €2,271/m², it remains considerably more affordable while responding to a different mix of market drivers.

Demand is more closely linked to lifestyle migration, permanent relocation and value-oriented international buyers than to the premium second-home segment.

Recent price movements also suggest a more mature phase of the cycle, illustrating that inland municipalities do not necessarily move in parallel with the coastal market.

For investors and buyers alike, Jalón demonstrates why local market analysis has become increasingly important.

A common conclusion

Each of these municipalities tells a different story.

Moraira demonstrates the impact of structural scarcity.

Altea highlights the value of market diversity.

Alicante City illustrates the strength of an improving urban residential market.

Jalón reminds us that affordability and market momentum do not always move together.

Taken together, these examples reinforce the central conclusion of this report.

Costa Blanca North should no longer be viewed as a single residential market, but as a collection of distinct local markets, each driven by its own combination of demand, supply and market momentum.

5. Market Momentum Index (MMI 1.0)

Looking beyond price

Residential property prices are among the most widely reported market indicators.

They are also among the easiest to misinterpret.

Two markets may record similar annual price growth while behaving very differently beneath the surface. One may be supported by strong demand, rising transaction activity and limited supply. Another may simply reflect a shortage of available properties despite declining sales.

Looking only at prices makes these markets appear similar.

In reality, they are not.

For this reason, Panea Scheffer has developed the Market Momentum Index (MMI 1.0).

Rather than measuring how expensive a market is, the MMI evaluates how dynamic that market currently is.

Its objective is not to predict future prices, but to provide a clearer understanding of the forces driving today’s market.

A broader view of market performance

The MMI combines five complementary dimensions of market behaviour:

Price evolution, reflecting short and medium-term market direction.
Position relative to historic highs, showing whether prices continue to advance or are moving away from previous peaks.
Transaction activity, indicating the level of market participation.
Financing conditions, recognising the influence of mortgage affordability on residential demand.
Supply pressure, reflecting the balance between available housing and buyer demand.

Together, these indicators provide a broader picture of market momentum than prices alone.

Interpreting the MMI

The Market Momentum Index ranges from 0 to 100.

Higher scores indicate stronger market momentum.

Figure 4 – MMI Score Legend

Score	Market stage
80 – 100	🔥 Very Dynamic
60 – 79	📈 Evolving
40 – 59	➡️ Stable
20 – 39	⚠️ Slowing
0 – 19	❄️ Frozen

The MMI should not be interpreted as a measure of investment quality or future performance.

Instead, it provides a comparative view of how actively different residential markets are currently evolving, helping identify where momentum remains strongest and where market conditions are becoming more balanced.

Why it matters

For many years, residential markets could be described using a relatively small number of indicators.

Today, that is no longer sufficient.

A municipality may continue to record rising prices while transaction volumes decline.

Another may show only modest price growth, yet experience exceptionally strong demand supported by limited supply.

These markets require different interpretations.

The MMI has been developed precisely to support that interpretation.

By combining multiple market indicators into a single comparative measure, it becomes easier to identify changes in market behaviour that might otherwise remain hidden behind price statistics alone.

MMI Version 1.0

This report introduces MMI 1.0, the first edition of a methodology that will continue to evolve as additional datasets become available.

Future editions are expected to incorporate more granular information, including municipality-level transaction activity, housing supply, market absorption and other structural indicators, while preserving methodological consistency to ensure meaningful comparisons over time.

The objective is continuous improvement rather than methodological complexity.

A robust analytical framework should evolve alongside the market it seeks to explain.

A practical example

To illustrate the value of the MMI, consider two hypothetical municipalities.

Both record annual asking price growth of 10%.

At first sight, they appear equally strong.

However:

Market A

Transaction activity is increasing.
Supply remains limited.
Prices are close to a historic high.

The MMI identifies this market as Very Dynamic.

Market B

Transaction volumes are declining.
Mortgage activity has softened.
Supply has started to increase.

Despite similar price growth, the MMI classifies this market as Stable.

The difference is not the price.

The difference is the momentum behind the price.

That distinction can significantly influence buying, selling and investment decisions.

6. Looking Ahead

What to watch during the second half of 2026

Costa Blanca North enters the second half of 2026 from a position of relative strength.

Demand remains resilient, particularly in established coastal municipalities with limited housing supply and strong international appeal. However, the market is also becoming more selective, suggesting that future performance will increasingly depend on local conditions rather than broad national trends.

Several factors are likely to shape residential market activity over the coming months.

Demand is expected to remain supportive

International demand continues to represent one of the region’s strongest structural advantages.

Lifestyle migration, retirement, remote working and second-home ownership remain important drivers of residential demand across Costa Blanca North. While the profile of buyers may continue to evolve, there is currently little evidence to suggest a significant reduction in international interest.

Domestic demand is likely to remain more sensitive to financing conditions, particularly within the middle segment of the market.

Supply is unlikely to improve significantly

The structural shortage of quality residential stock continues to be one of the defining characteristics of Costa Blanca North.

Planning restrictions, limited development land and the relatively slow pace of new construction mean that supply is unlikely to expand sufficiently in the short term to rebalance the market.

As long as these conditions persist, they are expected to provide continued support for residential values, particularly within the premium segment.

Financing conditions remain a variable to monitor

Although mortgage activity has softened, financing conditions should be interpreted with caution.

Changes in interest rates do not affect all residential markets equally.

Prime coastal markets, where cash purchases and international buyers account for a significant proportion of transactions, tend to be less sensitive to movements in the Euribor than markets driven primarily by domestic owner-occupiers.

Nevertheless, financing conditions remain an important variable for understanding the broader residential market.

Three possible scenarios

Base Case

The most likely scenario remains one of moderate price growth supported by constrained supply and resilient international demand.

Transaction volumes may remain below recent peaks, while residential values continue to increase at a more sustainable pace.

Upside Scenario

Should financing conditions improve and additional international demand emerge, premium municipalities could continue outperforming the broader market.

Under this scenario, supply constraints would remain the principal driver of further price appreciation.

Downside Risks

The principal risks to the market are unlikely to come from residential demand itself.

Instead, they include:

a prolonged deterioration in financing conditions;
significant geopolitical uncertainty affecting international confidence;
a material increase in available housing supply;
regulatory changes affecting foreign investment or property ownership.

At present, none of these factors appears sufficiently strong to alter the market’s overall direction, although they should continue to be monitored.

Final assessment

Based on the evidence available at the time of publication, Costa Blanca North continues to exhibit the characteristics of a fundamentally resilient residential market.

However, the next phase is likely to reward selectivity rather than generalisation.

Differences between municipalities, neighbourhoods and individual properties are expected to become increasingly significant. As a result, informed decision-making will depend less on broad market averages and more on understanding the dynamics of each local market.

For buyers, this reinforces the importance of identifying opportunities beyond headline prices.
For sellers, it highlights the value of realistic pricing and accurate market positioning.
For investors, it confirms that local market intelligence is becoming an increasingly important competitive advantage.

The market is no longer defined by how much prices rise. Increasingly, it is defined by where, why and at what pace they continue to rise.

7. Methodology

Methodology

This report has been prepared using publicly available market information combined with proprietary market analysis developed by Panea Scheffer Market Intelligence.

The objective is not to produce an official statistical publication, but to provide an independent comparative assessment of residential market dynamics across Costa Blanca North.

Geographic scope

For the purposes of this report, Costa Blanca North includes the residential markets extending from Alicante City to Dénia, together with selected inland reference locations where relevant.

Asking prices

Average asking prices are based primarily on data published by Idealista and captured by CASAFARI from publicly advertised on legacy websites and public portals, and reflect advertised residential property prices at the time of publication.

Modelled transaction prices

Asking prices do not necessarily reflect final transaction values.

To provide additional market perspective, this report includes Modelled Transaction Prices, calculated by applying standardised adjustments to advertised asking prices.

For this first edition, the following assumptions have been adopted, based:

15% adjustment for national, regional and provincial averages.
5% adjustment for the selected Costa Blanca North municipalities analysed in this report.

These adjustments are analytical estimates based on reports from the primary sources, intended solely for comparative purposes and should not be interpreted as official transaction-price statistics.

Market Momentum Index (MMI 1.0)

The Market Momentum Index (MMI) is a proprietary comparative indicator developed by Panea Scheffer.

Rather than measuring market value, the MMI evaluates the relative momentum of each residential market by combining several complementary indicators, including:

Recent price evolution.
Position relative to historic price highs.
Residential transaction activity.
Financing conditions.
Supply pressure.

Scores range from 0 to 100 and are intended to facilitate comparisons between markets rather than predict future price movements.

As additional municipality-level datasets become available, especially from Portal Estadístico del Notariado, future editions will continue refining the methodology while maintaining consistency with previous reports.

Limitations

Residential markets are inherently local.

Consequently, no single indicator can fully explain market behaviour.

The findings presented in this report should therefore be interpreted as analytical guidance rather than as investment, legal or valuation advice.

8. Sources

Primary Sources

Idealista – Residential Price Index (June 2026)
Consejo General del Notariado – Residential Market Statistics
Portal Estadístico del Notariado
Instituto Nacional de Estadística (INE)
Banco de España – Euribor statistics

Supporting Sources

Ministerio de Vivienda y Agenda Urbana
Colegio de Registradores de España
European Central Bank (interest rate policy)
CASAFARI market data (where available)

About this publication

This report forms part of the Real Estate Market Intelligence series published by Magdalena Panea Scheffer.

The series provides independent, data-driven analysis of residential property markets, combining local market expertise with advanced PropTech tools to help buyers, sellers and investors better understand market dynamics and make more informed property decisions.

The Market Momentum Index (MMI) introduced in this report forms part of a proprietary analytical framework that will continue to evolve as additional market data become available, while maintaining methodological consistency across future editions.

Disclaimer

This publication has been prepared for general market information purposes only. While every effort has been made to ensure the accuracy of the information contained herein, no representation or warranty is given as to its completeness or accuracy. This report does not constitute financial, legal, tax or investment advice.