The Spanish real estate market continues to attract thousands of investors, especially foreigners, who see in areas like the Costa Blanca an ideal opportunity to generate stable income through rentals. But the big question for 2025 is: is buying to rent on the Costa Blanca still profitable?
In this article, we provide a clear and up-to-date overview of the market situation, expected profitability, demand, recommended areas, and key points to maximize your investment.
📈 How is the market in 2025?
Despite global economic uncertainty, the Costa Blanca real estate market has shown remarkable resilience. Coastal cities like Torrevieja, Alicante, Orihuela Costa, and Benidorm remain highly sought after by both residents and tourists.
Factors driving interest in 2025:
- Increase in remote work and digital nomads.
- High demand for holiday rentals.
- Market stability compared to other European regions.
- Climate, quality of life, and relatively low cost of living.
In general terms, purchase prices have stabilized in most areas, while rental prices have grown between 4% and 6% annually in tourist zones.
💰 What profitability can be expected?
The profitability of a property intended for rental depends on several factors: location, type of dwelling, tenant profile, and type of rental (tourist or long-term).
🔹 Estimated average yields:
- Holiday rental: between 6% and 10% gross annual return.
- Long-term rental: between 4% and 6% gross annual return.
The most profitable properties tend to be well-located 1- or 2-bedroom apartments, with a terrace or sea views, close to services or beaches.
📍 Most profitable areas of the Costa Blanca
If you are thinking about buying to rent in 2025, here are some of the most recommended areas due to their balance between purchase price and rental demand:
- Torrevieja: competitive prices, strong national and international demand.
- Alicante city: ideal for residential and tourist rentals. Good connectivity.
- Orihuela Costa: modern developments, beaches, and foreign clientele.
- Guardamar del Segura: growing interest for its tranquility and natural environment.
- Benidorm and surroundings: tourist hotspot throughout the year.
🧾 Costs you should consider
Beyond the purchase price, there are other expenses that affect net profitability:
- Purchase taxes (VAT or ITP): between 8% and 10% of the purchase value.
- Notarial and registry fees: between €1,000 and €2,500.
- Maintenance and community fees: from €500/year depending on the property.
- IBI (property tax) and garbage fees: annual municipal taxes.
- Rental management (optional): if contracting an agency, commission of 10% to 20% of gross income.
- Home insurance: from €150/year.
- Tourist license (if a holiday rental): required in many areas.
👉 It is important to calculate not only gross profitability but also net profitability, which reflects what you actually earn after expenses.
🏠 Holiday rental or long-term rental?
Both options can be profitable but suit different profiles:
🏖️ Holiday rental
- High profitability per night.
- More turnover, but greater logistical work.
- Requires a tourist license.
- Ideal in areas with a large flow of tourists.
📅 Long-term rental
- Lower profitability but stable income.
- Less daily management.
- Greater legal security (if tenants are well-selected).
Many owners opt for a mixed model: holiday rental in summer and long-term rental in winter.
📌 Keys to maximize profitability
- Strategic location: proximity to the beach, services, and transport.
- Complete equipment: Wi-Fi, air conditioning, modern appliances.
- Good presentation: professional photos, neutral and modern decoration.
- Professional management: using platforms like Airbnb or Booking, or delegating to local agencies.
- Tax optimization: seek advice on deductions and legal structure.
👥 Buyer profile in 2025
In 2025, the investor profile has evolved. The predominant groups are:
- European investors (Belgians, French, Germans, Swedes, etc.) seeking diversification.
- Digital nomads who buy and rent when not occupying.
- Active retirees who use the property seasonally.
- Younger buyers who combine personal use with seasonal profitability.
✅ Conclusion
Buying to rent on the Costa Blanca in 2025 remains an attractive and profitable investment, especially if you choose the right area, manage the property correctly, and understand your numbers.
With high tourist demand, market stability, and options for both holiday and residential rentals, the Costa Blanca consolidates itself as one of the most profitable regions in Spain.
👉 If you are considering investing, Mayrasa guides you through the entire process: from property search to rental management. Contact us and discover the best opportunities.
