The Costa Blanca is one of Spain’s most attractive regions for real estate investment, thanks to its Mediterranean climate, booming tourism industry, and high rental demand. But with so many options, which city offers the best return on investment (ROI) for short-term rentals?
Below, we explore the top locations based on rental yields, property prices, and occupancy rates, helping you choose the best place for your short-stay rental investment.
Why invest in Costa Blanca
Before we dive into the best cities, let’s take a look at why Costa Blanca is such a prime investment location.
– Strong tourism industry
Costa Blanca attracts millions of visitors every year, thanks to its sunny climate, beautiful beaches, and cultural landmarks. According to Statista, Spain received over 80 million tourists in 2023, and Costa Blanca is among the most visited regions.
– High rental demand
With tourists, digital nomads, and expats looking for short-term rentals, Costa Blanca properties maintain high occupancy rates year-round. Locations with strong demand see higher yields and shorter vacancy periods.
– Favorable property prices
Compared to other major Spanish cities like Barcelona or Madrid, property prices in Costa Blanca are more affordable, making it easier for investors to enter the market. Idealista reports that Alicante’s average price per square meter is significantly lower than Madrid’s, making it a great value-for-money option.
– Flexible rental regulations
While some Spanish cities have strict short-term rental regulations, Costa Blanca still offers many investment-friendly areas. However, it’s important to check local laws before purchasing a property.
1. Alicante – The all-round best option
Why invest in Alicante?
Alicante is a major tourism and business hub, with a high volume of visitors year-round. The city is home to Alicante-Elche Airport, one of Spain’s busiest, ensuring steady short-term rental demand.
Key advantages:
- International airport with millions of annual arrivals (AENA).
- Attractions like Santa Bárbara Castle and Postiguet Beach drive strong tourism.
- Affordable property prices compared to other Spanish coastal cities (Idealista).
- Year-round occupancy, making it less dependent on peak seasons.
Best areas to invest in Alicante:
- El Centro – Best for high rental demand and tourist appeal.
- San Juan Playa – Ideal for beachfront properties with premium rates.
- Gran Vía & Vistahermosa – More residential but still profitable for mid-term rentals.
Learn more about professional Airbnb management in Alicante.
Average rental yield: 6-8% per year for well-located properties.
2. Benidorm – High rental yields but seasonal demand
Why invest in Benidorm?
Benidorm is Spain’s most famous resort town, known for its high-rise skyline, nightlife, and sandy beaches. It’s a short-term rental hotspot, attracting millions of tourists each year.
Key advantages:
- One of Spain’s most visited cities, welcoming over 10 million tourists per year (Statista).
- Premium nightly rental rates due to strong demand.
- Close to Terra Mítica Theme Park, beaches, and major nightlife spots.
Challenges:
- Highly seasonal demand—most bookings happen in summer.
- Strict local regulations on short-term rentals (El País).
Best areas to invest in Benidorm:
- Levante Beach – High rental demand with premium pricing.
- Poniente Beach – More exclusive, attracting high-end travelers.
- Benidorm Old Town – A good mix of short- and mid-term rental potential.
Explore guaranteed rental income options.
Average rental yield: 7-10% per year, with high peak-season profits.
3. Torrevieja – A budget-friendly alternative
Why invest in Torrevieja?
Torrevieja offers some of the most affordable real estate on the Costa Blanca, making it an excellent entry point for first-time investors. It’s also popular among expats, ensuring steady demand for both short- and long-term rentals.
Best areas to invest in Torrevieja:
- La Mata – A growing area with great rental potential.
- Punta Prima – Popular among foreign buyers, ensuring high occupancy.
- Torrevieja Center – Best for city life and year-round bookings.
Discover professional rental services for short-stay investments.
Average rental yield: 5-7% per year.
4. Javea – Luxury investment with premium returns
Why invest in Javea?
Javea (Xàbia) is known for its luxury villas, stunning beaches, and exclusive clientele. It’s a high-end market catering to affluent travelers, making it ideal for premium short-term rentals.
Best areas to invest in Javea:
- Arenal Beach – The most tourist-friendly area.
- Port & Old Town – For more traditional, high-end properties.
- Montgó Hills – A secluded luxury spot with sea-view villas.
Average rental yield: 6-9% per year, depending on property type and location.
Which city is best for your short-stay rental investment?
The best city depends on your investment strategy:
- Alicante – Best for year-round demand and balanced returns.
- Benidorm – Best for high seasonal profits, but with off-season risks.
- Torrevieja – Best for affordable investments with steady demand.
- Javea – Best for luxury investors seeking premium rental income.
For expert property management, contact Blanca Stay to maximize your rental investment.