South Investor Guide
Costa Blanca South: Investor Guide by Area
Area-by-area investor breakdown of Costa Blanca South. Occupancy rates, net yields, licensing risks, and resale timelines for Torrevieja to Guardamar.
Why Investors Pick Costa Blanca South
Many buyers arrive in Costa Blanca South for the wrong reasons. They fall for cheap apartments, sunshine photos, and agents quoting peak-season rents as if July lasts twelve months. It doesn't.
Costa Blanca South covers everything south of Alicante city down to the Murcia border. The main investment towns are Torrevieja, Orihuela Costa (including Villamartín, Playa Flamenca, and La Zenia), Guardamar del Segura, La Mata, and Pilar de la Horadada. Entry prices run 30-50% lower than the north coast, and that's what draws capital here.
The investor case is real, but it's conditional. Strong summer rental demand, a large expat community providing year-round tenants, and prices that still sit below pre-2008 peaks. The catch: seasonal volatility will cut your annual yield in half if you don't plan for the quiet months from October through April.
The numbers above vary dramatically depending on which town you buy in. A two-bed in Playa Flamenca and a two-bed in Guardamar are both "Costa Blanca South" but produce very different returns. The area-by-area data below will show you exactly where the gap sits.
Area-by-Area Yield Breakdown
Torrevieja
Torrevieja has the most liquid market in the south. Two-bed resale apartments run €150k–€200k. Summer occupancy hits 80-90% in July and August, but drops to 30-40% from October through April, giving an annual average around 55%.
Gross yield lands at 6–7% on a €150k purchase (roughly €9,000–€10,500 per year). Community fees run €80–€120/month, putting net yield at 5–6% after those costs.
The big risk here is licensing. Torrevieja requires a Licencia de Actividad for short-term rentals. Around 40% of previously active Airbnb listings were delisted after the 2024 crackdown. If you're buying for rental income, verify the license exists before you sign anything. Unlicensed properties face fines and delisting. Read our legal requirements guide before committing.
Resale timeline: 3–4 months. Torrevieja sells fast because of volume and price accessibility.
New Builds for Sale in Torrevieja
Orihuela Costa: Villamartín
Villamartín sits around the golf course and attracts a specific buyer: golfers and those targeting golf-tourist renters. Apartments run €180k–€220k for resale. Occupancy averages about 58% annually, with summer hitting 70-75% and winter sitting at 40-50%.
Gross yield is 6–7% (€10,800–€12,600/year on a €180k buy). But here's where it gets tricky. Golf community fees run €120–€180/month because of course maintenance. That pulls net yield down to 4.5–5.5%. Fees eat significantly into returns.
Licensing is more open than Torrevieja but tightening. Resale takes 4–8 months because the buyer pool is narrower. Only buy here if you have strong conviction on sustained golf tourism demand.
Orihuela Costa: Playa Flamenca
Playa Flamenca is the strongest yield play in Orihuela Costa. Apartments price at €160k–€190k resale, with similar 58% annual occupancy to Villamartín.
The difference is in the fees. Community costs run just €60–€90/month. That pushes gross yield to 6.5–7.5% and net yield to 5.5–6.5%, the best net numbers in the Orihuela Costa area. The licensing environment is more open than Villamartín, though regulations are still evolving. Use our rental income calculator to run your own numbers.
Resale takes 3–5 months. More buyers are interested in Playa Flamenca than Villamartín because it's not locked into a niche market.
Guardamar del Segura
Guardamar is the cheapest entry point. Apartments start at €120k–€150k resale. But lower prices don't automatically mean better yields.
Annual occupancy sits around 45%, with summer peaking at just 55-65% and winter dropping to 25-35%. Gross yield lands at 4.5–5.5% (€5,400–€6,600/year on €120k). Community fees are low at €50–€70/month, but the net yield still only reaches 3.5–4.5%.
The licensing situation is the least restricted here. Short-term rentals are still broadly permitted. But the real problem is liquidity. Resale takes 6–12 months. It's a niche market with limited buyer interest. If you need to exit, you'll wait.
Guardamar works for long-term holds where you plan to use the property yourself and rent it out occasionally. It's a poor choice for yield-focused investors who need reliable income and an exit strategy.
Head-to-Head Yield Comparison
| Area | Entry Price | Net Yield | Occupancy | Resale Time | Risk Level |
|---|---|---|---|---|---|
| Torrevieja | €150k–€200k | 5–6% | ~55% | 3–4 months | Medium (licensing) |
| Villamartín | €180k–€220k | 4.5–5.5% | ~58% | 4–8 months | High (fees + niche) |
| Playa Flamenca | €160k–€190k | 5.5–6.5% | ~58% | 3–5 months | Low-medium |
| Guardamar | €120k–€150k | 3.5–4.5% | ~45% | 6–12 months | High (liquidity) |
Playa Flamenca comes out ahead on net yield and carries moderate risk. Torrevieja offers better liquidity but the licensing situation demands careful legal due diligence. Villamartín's high community fees drag returns down despite decent occupancy. Guardamar's low prices are tempting but the poor resale timeline makes it a trap for investors who might need their capital back.
One factor that cuts across all four areas: these are seasonal markets. Don't build your financial model on peak-season numbers. If your investment only works at 80% occupancy, it doesn't work. Model at 50% and see if the return still makes sense. Factor in property management costs if you won't be local (typically 15-20% of rental income), annual IBI tax (€300-€600 for a two-bed apartment), and buying costs that add 12-14% on top of the purchase price.
For non-residents, there's also the 24% income tax on rental earnings (19% for EU residents). This further reduces your net return and is easy to overlook when comparing headline yields. Run the full numbers before committing capital.
Before You Buy
Red Flags
Where These Areas Are
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