Immofy Blog

THE RISE OF COSTA BLANCA AS A SUPERDELUXE RESIDENTIAL DESTINATION

The Costa Blanca, with its sun-drenched beaches and Mediterranean charm, has always acted as a magnet for tourists and expats from around the world. The province of Alicante is on the upswing when it comes to the sale of luxury real estate. In particular, wealthy foreigners from Northern and Eastern Europe are rapidly increasing in popularity. But recently, this popular Spanish coastal strip has seen a new trend: an increasing number of wealthy residents who want to exchange the island of Ibiza for a home on the Costa Blanca.

Due to various factors, including rising costs of living and real estate in Ibiza and increasing crowds, there is growing interest in the more relaxed lifestyle that the Costa Blanca has to offer. The attractiveness of the Costa Blanca is enhanced by various aspects, such as lower costs of living, a varied range of luxury (new-build) homes, and a thriving cultural and culinary scene. Alicante province is set to definitively establish itself as the new 'place to be' for luxury homes in Spain in 2024.

The migration to the Spanish Costa Blanca has not only led to a construction explosion of luxury homes but has also sparked a wave of investments in restaurants, shops, wellness and sports centers, and other amenities, making the Costa Blanca a hotspot for affluent lifestyle.

The rise of luxury homes in the province of Alicante is so striking that Grupo Tecnitasa recently conducted a study on it, resulting in strong growth in the sale of luxury houses with prices far above average. Particularly municipalities such as Altea, Xàbia/Jávea, and Teulada-Moraira are seeing an increase in the sale of top-segment homes with prices of more than 4 million euros and an average value of over 2 million for a premium home.

Here is an overview of the top 10 municipalities in the province of Alicante with the most expensive premium homes and the corresponding average house and square meter prices:

  1. Altea: Average price of 1.52 million euros with a square meter price of 2,708 euros, making it the most affordable municipality for luxury homes.
  2. El Campello: Average price of 1.53 million euros. The square meter price of 4,447 euros is a lot higher.
  3. Benissa: Average price of 1.72 million euros with a square meter price of 4,016 euros.
  4. Orihuela: Average price of 1.94 million euros with a square meter price of 3,850 euros.
  5. La Nucía: Average price of 1.99 million euros with the second-lowest square meter price of 3,132 euros on the Costa Blanca.
  6. Calpe: Average price of 2.01 million euros with a square meter price of 4,980 euros, making it one of the most expensive.
  7. Teulada-Moraira: Average price of 2.09 million euros with a square meter price of 4,686 euros.
  8. Finestrat: Average price of 2.3 million euros with a square meter price of 4,835 euros.
  9. City of Alicante: Average price of 2.33 million euros with a square meter price of 5,085 euros.
  10. Xàbia/Jávea: This is the most expensive municipality with an average price of 2.66 million euros and a (relatively lower) square meter price of 3,588 euros.

In the segment of super luxury homes, with prices between 3 and 7 million euros, houses in the regions of Marina Baixa and Marina Alta are particularly represented:

  • Altea: Average price of 4.8 million euros with a square meter price of 3,380 euros.
  • Xàbia/Jávea: Average price of 4.68 million euros with a square meter price of 3,310 euros.
  • Teulada-Moraira: Average price of 3.46 million euros with a square meter price of 5,862 euros.
  • Dénia: Average price of 3.02 million euros with a square meter price of 4,513 euros.

The data is based on homes with prices above 1.5 million euros registered since 2018, providing a representative picture of the premium, luxury, and super-luxury market.

Despite the prosperity and opportunities that the arrival of the more fortunate brings, there are also challenges facing the Costa Blanca. The rising property prices have led to concerns about affordability for local residents and have forced some to move to other areas. Moreover, the rapid development of luxury homes and amenities raises questions about sustainability and preservation of the natural beauty of the region.

In light of these challenges, it is crucial that the growth of the Costa Blanca is managed in a way that maximizes the economic benefits and minimizes the social and ecological impact. By finding a balance between growth and conservation, the Costa Blanca can continue to thrive as a world-class destination that continues to enchant both residents and visitors with its timeless beauty and modern allure.

Source: Technitasa.es - Study of the Luxury Residential Market in Spain
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hotos: Ten Brinke & Pepe Giner Arquitectos