Expert Insights
Spain's new-build property market continues to attract strong international demand, but not all regions are developing at the same pace. Buyers researching the Comunidad Valenciana quickly notice a clear trend. While Valencia city offers a relatively limited number of new developments, Alicante province continues to launch new projects across much of the Costa Blanca.
For international buyers, this raises an important question. Why are developers building so much more in Alicante than Valencia, and which locations offer the best opportunities for a second home, relocation or investment?
To answer those questions, we spoke with Liena Rubene of Rubenel Real Estate, who works closely with international buyers across Costa Blanca and has witnessed first-hand how the region's new-build market has evolved in recent years.
Why Alicante continues to dominate the new-build market
Many international buyers begin their property search in Valencia only to discover that a significant proportion of new developments are actually located further south in Alicante province. This is not a recent trend. According to Liena, Costa Blanca has historically attracted a much higher percentage of foreign buyers than Valencia, creating strong incentives for developers to continue launching projects across the region.
"Historically, Alicante has been very strong for international buyers. More than 30% of buyers are foreign, and this trend continues year after year."
The reasons are relatively straightforward. Alicante offers a combination of established international communities, coastal lifestyle, extensive tourism infrastructure and a large market for second homes. Developers know that demand exists not only from Spanish buyers, but also from purchasers arriving from the UK, Belgium, the Netherlands, Baltic states, Poland, Germany and increasingly North America.
Where international demand remains strong, developers continue buying land and launching projects. This helps explain why buyers searching for new-build apartments or villas will often find significantly more options across Costa Blanca than within Valencia city itself.
Valencia has certainly become more international in recent years. However, its market is still largely driven by people who intend to live there permanently. The city attracts professionals, entrepreneurs, remote workers and families, while Alicante continues to attract a larger share of lifestyle buyers and second-home purchasers.
Alicante vs Valencia: two very different property markets
One of the biggest mistakes buyers make is assuming that Alicante and Valencia offer essentially the same product. In reality, they cater to very different lifestyles.
Valencia functions primarily as a year-round city. Buyers are attracted by its cultural scene, international schools, healthcare infrastructure, public transport network and growing international community. For many foreign buyers relocating to Spain permanently, Valencia offers a balanced combination of Mediterranean lifestyle and urban convenience.
The city appeals particularly to buyers looking for a primary residence rather than a holiday home.
Alicante operates differently. Much of the market revolves around lifestyle purchases. Buyers are often searching for a second home, a retirement property or a residence that allows them to spend several months each year in Spain. This has shaped the type of developments that are being built.
Many projects include swimming pools, fitness centres, landscaped communal gardens and resort-style amenities because these features appeal directly to the international buyer profile. As Liena explains:
"Valencia is more connected to first-home developments and people living there permanently. Alicante has historically attracted more second-home buyers and international purchasers."
Neither market is better than the other. The right choice depends entirely on your objectives. Buyers focused on long-term relocation often favour Valencia, while those prioritising sea views, holiday use and resort-style living frequently gravitate towards Costa Blanca.
Understanding Costa Blanca's new-build hotspots
Costa Blanca is not a single market. Property prices, buyer profiles and development activity vary considerably from one location to another.
Benidorm: one of Spain's strongest year-round investment markets
Few destinations on the Spanish coast generate stronger opinions than Benidorm. Yet from an investment perspective, it remains one of the most resilient property markets in the country. What makes Benidorm different is that it functions throughout the year. While many coastal towns experience significant seasonal fluctuations, Benidorm maintains activity even during the winter months.
"You can see life on the streets in February almost as much as in August."
This year-round demand supports both the local economy and the rental market. Investors searching for properties with strong occupancy levels often continue to view Benidorm favourably for precisely this reason. Within the city itself, buyers should understand the difference between Levante and Poniente.
Levante has traditionally attracted British tourism and remains heavily associated with holiday rentals and nightlife. Investors focused on short-term rental demand often pay particular attention to this part of the city.
Poniente offers a different atmosphere. Historically more residential, it has become one of the most active areas for premium new-build developments. Large residential complexes with pools, gyms, co-working spaces and family-oriented facilities have transformed the area over the past decade.
Today, new-build two-bedroom apartments in Poniente typically start between €450,000 and €550,000, while premium sea-view properties can exceed €700,000. Luxury penthouses frequently surpass the €1 million mark.
For buyers focused on rental demand, Benidorm remains one of the few coastal destinations in Spain where seasonality has a much smaller impact than elsewhere. For lifestyle buyers, however, the city's density and high-rise skyline may not appeal to everyone. This is why understanding your objective before purchasing remains so important.
Finestrat: where many investors are looking next
Just a few minutes from Benidorm, Finestrat has emerged as one of the fastest-growing new-build markets on Costa Blanca. Unlike Benidorm, where available development land is becoming increasingly scarce, Finestrat continues to offer opportunities for large-scale residential projects. Developers have responded by launching a wide range of apartment complexes and villa developments aimed primarily at international buyers. Liena sees no signs of this trend slowing down.
"There are a lot and a lot of new builds. There is still land for more. The developments continue there really a lot."
Many buyers who initially begin their search in Benidorm ultimately purchase in Finestrat. They remain close to beaches, shopping centres and transport links while benefiting from newer construction, lower density and often more competitive pricing.
New-build apartments generally start between €300,000 and €400,000, depending on views and facilities. Detached villas usually begin around €500,000 to €600,000, while higher-end developments regularly exceed €800,000.
For many international buyers, Finestrat represents a middle ground between investment and lifestyle. The area still offers growth potential, modern infrastructure and relatively good value compared with some of Costa Blanca's more established luxury markets.
Javea and Denia: buying for lifestyle rather than yield
As buyers move further north along Costa Blanca, the market changes significantly.
Javea and Denia have developed a reputation as some of the most desirable residential locations in the region. While investors remain active, many purchases are driven primarily by lifestyle considerations. This is a market where buyers often prioritise quality of life over rental yield.
"Javea is often more about lifestyle than pure investment."
The area attracts affluent international buyers looking for marinas, sailing facilities, international schools and a more relaxed Mediterranean environment. Many owners spend several months each year in their properties rather than treating them purely as investments.
The housing stock also differs from other parts of Costa Blanca. While apartments remain available, the market is particularly known for detached villas and larger residential properties.
Modern apartments typically start from €350,000 to €500,000, depending on location and proximity to the sea. For buyers seeking a villa, budgets generally begin around €1 million, while prime contemporary homes with sea views often command prices between €2 million and €3 million or more.
This part of Costa Blanca also attracts many buyers from Valencia itself. It is not unusual for successful professionals living in Valencia city to own a second residence in Javea or Denia, reinforcing the area's reputation as one of the region's premium lifestyle destinations.
Torrevieja and Orihuela Costa: affordability remains the key attraction
At the southern end of Costa Blanca, the conversation often shifts towards affordability.
Torrevieja and Orihuela Costa continue to attract buyers searching for lower entry prices without sacrificing proximity to the sea. These markets have become particularly popular among retirees, first-time overseas buyers and those working with more moderate budgets.
Many international purchasers are surprised by the price difference between these areas and locations such as Javea or Benidorm. Liena believes much of this reflects long-established market dynamics.
"Real estate is about location, but it is also about long-established market trends. Some areas have always attracted a different buyer profile and those patterns continue today."
Historically, these markets developed around affordability rather than exclusivity. As a result, supply is larger, buyer demographics are broader and pricing remains more accessible.
New-build apartments often start between €220,000 and €350,000, while detached villas generally begin around €350,000 to €500,000.
For buyers prioritising value for money, the southern Costa Blanca market remains one of the most accessible coastal property markets in Spain. While these areas may not offer the same prestige as Javea or Altea, they continue to attract steady demand from buyers seeking sunshine, space and affordability.
Buying off-plan in Spain: opportunities and common mistakes
Many international buyers are attracted to off-plan properties because they offer access to the earliest project pricing. Developers typically launch developments at their most competitive prices and gradually increase values as construction progresses and units are sold. According to Liena, buyers who enter a project during the launch phase often benefit from the strongest pricing.
"From launch to completion, prices can increase by approximately 30%."
That potential upside explains why off-plan purchases remain popular across Costa Blanca. However, buyers should not focus exclusively on the discount. Before making any reservation, it is important to understand exactly why you are purchasing the property in the first place. Liena believes this is the starting point for every successful purchase.
"The first thing is to understand the reason for the purchase. Is it a second home, a permanent residence or a pure investment? Those are completely different objectives."
A property that works well as a rental investment may be entirely unsuitable for a family planning to relocate permanently. Likewise, a buyer looking for a quiet residential environment will have very different priorities from someone focused on maximising holiday rental income.
Once the objective is clear, buyers should carefully review the payment structure proposed by the developer. Most projects begin with a reservation deposit, followed by a private purchase contract and staged payments throughout construction. The exact percentages vary between developers, with some requesting 20% or 30% upfront and others requiring additional payments at different construction milestones.
This is where financing becomes particularly important. Many international buyers assume they can secure a mortgage immediately after reserving a property. In reality, Spanish banks generally provide final mortgage approval once construction has been completed and the property can be formally valued. Understanding your financing strategy before signing any reservation agreement is therefore essential.
Why due diligence matters more than the marketing brochure
Beautiful renderings, sea views and impressive marketing materials can create excitement, but experienced buyers know that the most important questions are often the least visible. According to Liena, the first step is always to investigate the developer behind the project.
"The first thing I would look at is the developer's track record."
A developer with a long history of completed projects provides an additional layer of confidence. Buyers can visit previous developments, evaluate construction quality and verify whether projects were delivered according to schedule. While every developer started somewhere, an established track record often reduces uncertainty.
Independent legal advice is equally important. Before committing significant funds, buyers should work with an independent lawyer who can review the project's documentation and verify that the development is progressing correctly.
Among the most important documents to check are the building licence (Licencia de Obra), proof of land ownership through the Land Registry, project plans, technical specifications and the developer's guarantee structure. These documents help confirm that the development has the necessary permissions and that the property being purchased corresponds to what is being marketed.
Liena also highlights the importance of reviewing the project's financial guarantees. Under Spanish law, developers must protect buyer deposits through either a bank guarantee or an insurance-backed guarantee.
"If the project is not delivered according to the agreed conditions, those funds are protected."
This protection is one of the reasons why Spain remains one of Europe's most established markets for off-plan purchases.
Understanding specifications, finishes and customisation options
One aspect that often surprises international buyers is the level of finish included in Spanish new-build properties.
Unlike some countries where properties are delivered with little more than basic flooring and painted walls, most Spanish developments include fitted kitchens, bathrooms, flooring, air-conditioning systems and a detailed specification sheet known as the Memoria de Calidades.
The Memoria de Calidades is one of the most important documents buyers should review before purchasing. It outlines the construction materials, insulation standards, kitchen equipment, flooring, windows and other technical features included in the property.
The level of flexibility available to buyers depends largely on the type of development. In larger apartment projects, customisation options are often limited to a selection of finishes, colours or materials. Buyers may be able to choose between different flooring options, kitchen finishes or bathroom specifications if they enter the project early enough.
Luxury developments tend to offer much greater flexibility. As Liena explains, buyers purchasing high-end villas can often adapt significant elements of the property, including interior layouts, finishes and equipment packages. In some cases, developers can even deliver fully furnished properties ready for immediate occupation.
For buyers entering a project during the early construction phases, discussing these options with the developer can provide an opportunity to tailor the property more closely to their personal preferences and long-term plans.
Conclusion
The new-build markets of Alicante and Valencia may belong to the same region, but they offer very different opportunities.
Alicante remains the undisputed leader when it comes to new-build supply, offering everything from investment-focused apartments in Benidorm and Finestrat to luxury villas in Javea and Denia. Buyers searching for resort-style living, second homes or coastal investment opportunities will typically find more choice across Costa Blanca.
Valencia offers a different proposition. Its appeal lies in year-round living, strong infrastructure and a growing international community. For many buyers planning a permanent move to Spain, the city remains one of the most attractive destinations in Europe.
Whichever market you choose, understanding the local dynamics, the developer behind the project and the legal framework surrounding the purchase is essential. Taking the time to complete proper due diligence at the beginning of the process can make a significant difference to the outcome.
If you're considering buying a new-build property in Valencia or Alicante and want support from a team that works exclusively with buyers, we'd be happy to help.
We'd also like to thank Liena Rubene from Rubenel Real Estate for sharing her insights for this article. If you're specifically exploring opportunities across Costa Blanca, including Benidorm, Finestrat, Javea, Denia or Orihuela Costa, you can learn more about her work at www.rubenel.com.
FAQs New-build properties in Valencian Region
Is buying off-plan in Spain safe?
Buying off-plan can be very secure when the correct legal checks are completed. Spanish law requires developers to protect buyer deposits through bank guarantees or insurance-backed guarantees, providing important safeguards if a project is not delivered according to the agreed conditions.
Why are there more new-build developments in Alicante than Valencia?
Alicante has historically attracted a much larger share of international and second-home buyers. This has encouraged developers to continue acquiring land and launching projects across Costa Blanca, creating a significantly larger pipeline of new developments than in Valencia.
Which Costa Blanca area is best for investment?
The answer depends on your objectives. Benidorm and Finestrat are often attractive for buyers focused on rental demand and long-term appreciation, while Javea and Denia tend to appeal more to lifestyle buyers seeking a second home or permanent residence.
Can foreigners get a mortgage for a new-build property in Spain?
Yes. Most Spanish banks lend to foreign buyers. However, buyers should remember that mortgage approval is usually finalised once construction has been completed and the property can be formally valued.
What documents should a lawyer review before I reserve a property?
An independent lawyer should review the building licence (Licencia de Obra), Land Registry extract (Nota Simple), purchase contract, project plans, technical specifications (Memoria de Calidades) and the developer's bank guarantee or insurance policy before significant payments are made.
Can I customise a new-build property before completion?
In many cases, yes. Buyers who enter a project during the early stages of construction are often able to choose finishes, flooring, kitchen materials and bathroom specifications. Luxury villa developments typically offer a much higher degree of customisation than standard apartment projects.