The idea of investing in holiday flats in the province of Alicante may seem attractive because of its sun, beaches and warm climate. But it is important to understand that Alicante is not a cheap rental market. Prices are rising steadily, tourist demand is high, and this makes the this area into a great and well thought out investment idea.
Why invest now?
The demand for both holiday and medium-term rentals, is growing on the Costa Blanca, which drives prices upwards.
A good flat in a key location can generate a higher profitability than standard rent, especially if it is managed as a holiday home.
Buy new construction directly to the developer The new building benefits from modern finishes, less initial maintenance and the potential for upward value appreciation.
Given that prices are rising and the supply of land is not infinite, investing now may mean getting into a good spot on the curve before costs are even higher.
In short: if you are thinking about buy-to-let, now may be an opportune time to act. Let's look at two of the provinces/municipalities with the highest rental demand in Alicante.
In short: if you are thinking about buy-to-let, now may be an opportune time to act. Let's look at two of the provinces/municipalities with the highest rental demand in Alicante.
Provinces with the highest rental demand
Finestrat
In this municipality in the Marina Baixa, rental and holiday demand is high thanks to its proximity to the sea, international tourism and the quality of its urbanisations.
- In Finestrat you will find advertisements for seasonal or monthly rentals which exceed 2.000 €/month, for example, a 2-bedroom duplex penthouse was advertised for 2.350 €/month.
- A fact that has been cited: “up to €2,500/month” as rental ceiling in luxury developments. (Listings can be found from €2,000-3,200/month for high-end homes).
- Therefore, investing in Finestrat with a well-located flat can offer a holiday rental performance or cost-effective mid-stay.
Torrevieja
Another very popular area, especially for holiday rentals, is the Vega Baja in Alicante.
- The average rate of a holiday rental for a month in Torrevieja is estimated at around 1,608 €/month according to platform users.
- Short stays can start from ≈ 35 €/night and up depending on season, size, location.
- Although does not reach the levels of Finestrat in luxury long term rental, is still a very worthwhile investment thanks to the volume of tourism and the accessibility of the market.
Current regulation on holiday rentals
The new Organic Law 1/2025 (entry into force on 3 April 2025) gives to homeowners' associations the power to veto holiday rentals in its building.
Digital platforms must require the advertiser that the accommodation has the compulsory licensing or registration depending on the autonomous community.
The regulations depend to a large extent on each autonomous community, This means that the requirements may vary per municipality.
ún there are no major restrictions on holiday use uniform throughout Spain that generally prevent the activity, which reinforces the idea that today is a good time to enter.
In conclusion, the best investment today on the Costa Blanca is to buy new construction directly to the developer to ensure the best finishes, location and openness to the holiday or medium/long term rental market, before prices rise further and regulation is tightened.
Buying a new building with a developer
Buy new construction directly with a developer, The use of a brokerless, non-brokered, non-agency approach is one of the smartest decisions for any investor today. It allows access to better prices by eliminating commissions, ensures up-to-date and transparent information on the project and ensures direct communication with the actual builder of the house.
It also offers greater guarantees: new materials, energy efficiency, less maintenance and strict compliance with regulations. In a market where demand is growing and prices are rising, buying new property from the developer is the safest and most profitable way to invest on the Costa Blanca..
