The Costa Blanca and Costa Cálida Property Market – Is Now a Good Time to Buy?

Over recent months, we have received the same questions time and again: “Is it better to hold off on buying property? Will property prices fall?” These are natural questions to ask, particularly following significant shifts in interest rates and the broader European economic climate. Yet, looking at the market here in southern Spain—from Altea down to Los Alcázares, for instance—the reality is quite different from what many might expect.

The market remains strong

The Costa Blanca and Costa Cálida remain among the most sought-after regions in Europe. Demand across this part of Spain has stayed exceptionally robust. International buyers continue to invest in property, both as holiday retreats and for permanent residence.

What defines the market today is quite simply that quality properties are in shorter supply than the buyers seeking them. When a well-located home comes to the market, it often sells within a short space of time, particularly when realistically priced.

What is driving demand?

There are numerous reasons. People are drawn by over 320 days of sunshine a year, excellent infrastructure, international communities, a favourable cost of living compared to many other European countries, and an enviable quality of life. An increasing number of people are also able to work remotely, choosing to spend part or all of the year on the Costa Blanca. This is a trend that has grown stronger year on year, with nothing to suggest it is about to reverse.

What do the next 12–18 months hold?

Most indicators suggest the market will remain stable. Price growth will likely be more moderate than in the immediate post-pandemic years, yet most experts anticipate continued increases, particularly in prime locations. While supply remains restricted and demand stays high, a general decline in prices across this market remains very unlikely.

When is the right time to buy?

If your goal is short-term profit, precise forecasting is always difficult. However, if you are purchasing a property to enjoy, as a second home, or as a long-term investment, we believe the market still offers—and will continue to offer—superb opportunities. Many who purchased two or three years ago questioned whether they should wait. Today, the overwhelming majority are delighted with their decision, often only regretting that they did not take the step sooner.

Our advice

Whether you purchase this month or in three months’ time is of secondary importance. What matters most is securing the right property for you, in the right location, and at the right price. That is precisely where sound guidance makes the greatest difference.

If you are considering whether now is the right time for you, or would simply welcome an honest assessment of the market, the team at Pálmi is here to assist. It all begins with a good conversation—for many, the dream of a home by the Mediterranean is closer than they realise.