Costa Blanca is one of Spain’s most attractive regions for real estate investment, especially in the luxury villa sector. With strong tourist demand and continuous property appreciation, investing in this area can generate high returns. In this article, we analyze key data on vacation rental profitability, property appreciation, and foreign investment.
Vacation Rental Profitability
Villas in Costa Blanca offer an average net return of 7%, based on an investment of €200,000.
Estimated Rental Income
- Standard property: 128 m² with three bedrooms.
- Estimated net annual income: €15,906.
Read the full report on Inmodiario.
Post-Pandemic Market Recovery
The vacation rental market in Costa Blanca has seen a strong rebound after the pandemic:
- 30% increase in bookings in early 2023 compared to 2019.
- Moraira, Jávea, and Dénia doubled their occupancy rates compared to pre-pandemic levels.
Find more details on Forbes.
Annual Earnings from Rental Income
According to Transparent, the average annual earnings for property owners in Costa Blanca are:
- Moraira: over €16,300 per year.
- Costa Blanca overall: around €16,000 per year per property.
Property Appreciation in Costa Blanca
Profitability is not only driven by rental income but also by increasing property values:
- Jávea: gross return from property sales reaches 39.96%.
- Polop: property prices have increased by 67.71% over the last five years.
- Benitachell: 53.48% rise in property prices over the same period.
Check more data at Hispania Homes.
Property Prices per Square Meter
Villa prices vary depending on the location:
- Moraira: €3,360/m² (+34.45% in 5 years).
- Jávea: €2,804/m² (+35.32% in 5 years).
- Benitachell: €2,947/m².
- Polop: €2,187/m².
Foreign Investment in Costa Blanca
Costa Blanca leads foreign real estate investment, reaching €3.5 billion in 2023.
Top Foreign Investors by Country
- Netherlands: over €700 million per year.
- United Kingdom: over €700 million per year.
- Belgium: over €700 million per year.
More details on La Vanguardia.
Conclusion
Investing in villas in Costa Blanca offers high profitability, both from vacation rental income and property appreciation. Strong foreign demand and continuous market growth make this region an ideal destination for investors.
If you want to learn more about investment opportunities in this area, read our guide on investing in luxury properties in Spain.
Frequently Asked Questions (FAQ)
1. How much can you earn annually by renting a villa in Costa Blanca?
On average, net annual rental income exceeds €15,900, depending on the property’s location and features.
2. Which areas in Costa Blanca offer the highest rental returns?
The most profitable and in-demand areas include Moraira, Jávea, Dénia, Benitachell, and Polop.
3. Is real estate investment in Costa Blanca still attractive?
Yes, with consistent property appreciation and strong foreign demand, Costa Blanca remains one of Spain’s most profitable investment destinations.