In an era of economic uncertainty, Spain’s property market continues to deliver strong returns and lifestyle benefits that few European countries can match. As we move through 2025, here’s why buying on the Costa Blanca and beyond is still one of the smartest moves you can make.
Strong & Steady Growth
Spain’s economy grew 3.2% in 2024 and is forecast to expand another 2.3–2.6% in 2025 — far ahead of most of Europe. House prices rose 15.35% year-on-year in Q3 2025 (€2,517/m² on average) and are expected to keep climbing 7–10% annually through 2026, especially in coastal regions like the Costa Blanca, Valencia and the Balearics.
Excellent Rental Returns
Long-term yields: 4–6% in cities, up to 8% in Valencia/Málaga
Holiday rentals: 10–22% gross in tourist hotspots
Tourism spending hit a record €107–126 billion in 2024 and continues to rise.
Foreign Buyers Are Back in Force
Foreigners made up 18% of all purchases in early 2025 (+15% YoY), led by British, German, Dutch and Scandinavian buyers. Demand remains extremely robust even after the Golden Visa ended.
Affordable Financing & High Liquidity
Fixed mortgage rates sit at 2.5–3.75%, non-residents can borrow up to 70% LTV, and total sales are on track for 750,000–800,000 homes in 2025 (+9% vs 2024).
Lifestyle + Legacy
320+ sunny days, top-tier healthcare, international schools, and the Digital Nomad Visa make Spain perfect for families, retirees and remote workers alike.
Yes, supply is tight and bureaucracy exists — but the fundamentals have rarely been stronger.
Bottom line: Spanish property — especially on the Costa Blanca — is delivering capital growth, solid rental income and an unbeatable quality of life, all at prices still well below northern European levels.
Sources:
https://www.ine.es/dyngs/INEbase/en/operacion.htm?c=Estadistica_C&cid=1254736177078&menu=ultiDatos&idp=1254735976607
https://www.caixabankresearch.com/en/sectoral-analysis/real-estate/spains-housing-market-enters-new-expansionary-phase
https://www.spanishpropertyinsight.com/2025/11/26/foreign-buyers-step-back-in-q3-except-the-dutch-who-surge-ahead
https://www.bde.es/webbe/en/estadisticas/temas/tipos-interes.html
https://wttc.org/news/spain-tourism-sector-could-exceed-260-billion-euros-by-2025
Ready to invest while the window is still wide open? The Costa Blanca is waiting.
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