5 Reasons Why Property in Torrevieja Won't Get Cheaper
We still hear from clients that they are waiting for property prices in Torrevieja to drop. Many who have been waiting for the past five years are now kicking themselves for missing the opportunity. A couple of years ago they didn't buy a two-bedroom apartment, and today that same money only gets them a studio. Should they wait any longer? In our view — no, and we have five reasons why. But first, a brief overview of what is happening in the Torrevieja property market right now.
What Is Happening in the Torrevieja Property Market
2023–2025 have been years of sustained price growth in Torrevieja and across the Costa Blanca. According to Spain's Property Registry, average prices in Alicante province rose by 8–12% in 2024, with some areas seeing even higher gains. It is a seller's market: properties sell quickly and there is minimal room for negotiation.
Now, the five key reasons why this is unlikely to change in the near future.
1. Population Growth in Torrevieja
The number of residents in Torrevieja is growing steadily. In recent years, the city has gained around three thousand new permanent residents per year, bringing the total population to over 95,000. In the summer holiday season, the population swells to 400,000.
That many people need somewhere to live — demand for property in Torrevieja keeps rising. Basic economics: where there is demand, prices do not fall.
New residents come from diverse backgrounds: northern Europeans (British, German, Scandinavian, Dutch), Russians, Ukrainians, Kazakhs, and other post-Soviet nationals. Spanish internal migration is also growing as Madrid residents choose Torrevieja for retirement or remote work.
2. Construction Slowdown and New-Build Shortage
The crises of recent years badly affected Spain's construction industry. Rising energy, materials, and labour costs, combined with economic uncertainty, reduced the number of new development projects. Construction is now returning to pre-crisis levels, but the slowdown created a noticeable shortage: old projects are completed and sold, new ones are scarce. Construction costs have risen so much that new properties reach the market at prices unavailable just a few years ago. The new-build shortage inevitably pushes prices higher in both primary and secondary markets.
3. Low Secondary Market Supply
Secondary market supply in Torrevieja has also fallen sharply. Those who wanted to sell have done so in 2020–2022. Others decided to keep their properties or convert them to rentals, as rents have also risen significantly. The practical consequence: if you are looking at a property today and plan to visit in a month, the specific unit will very likely have been sold by then. Good properties at reasonable prices do not stay on the market for more than 2–4 weeks.
4. Economic Growth and City Development
Torrevieja is developing actively. Population growth inevitably drives new jobs and new businesses. Retail chains are expanding their presence. New restaurants, cafes, beauty salons, and sports clubs open regularly. Private enterprise is thriving. This is the fundamental market law: in a growing city, property prices do not fall.
5. Urban Infrastructure Development
Spanish municipalities have been investing actively in infrastructure for the past 20 years. Torrevieja is no exception. Projects include: promenade and beach zone upgrades, cycling and walking paths, expansion of retail and leisure areas, marina development, and improved transport links. Each infrastructure improvement increases the city's appeal and, consequently, property values. Buying now means buying in a city that gets better every year.
Bonus: International Demand
In 2023–2024, foreign buyers completed a record number of transactions on the Costa Blanca. Germans, Scandinavians, Dutch, and British continue to buy actively. For buyers from outside the eurozone — Russia, Kazakhstan, the UAE — the euro's relative weakness in recent years provided an additional price advantage.
What to Do Right Now
- Define your budget including 10–12% for taxes and transaction costs
- Choose your property type (studio, apartment, bungalow, townhouse, villa)
- Contact Granfield Estate — we'll show you current listings and arrange viewings
- Obtain your NIE and open a Spanish bank account — these can run in parallel with the search
- Engage a lawyer to check the property and manage the transaction
Conclusion
The five reasons why property in Torrevieja will not get cheaper are not marketing slogans — they are real economic factors. Population growth, new-build shortage, limited secondary supply, city development, and stable international demand all create a solid foundation for continued price growth. The best time to buy was several years ago. The second best time is now. Granfield Estate is ready to help you make that decision.
Frequently Asked Questions
Is it worth waiting for a decrease in real estate prices in Torrevieja?
According to our assessment — no. Prices in Torrevieja have been steadily rising for several years: in 2024, the growth in the province of Alicante was 8–12%. The growth factors — population increase, shortage of new builds, and a steady influx of foreign buyers — are not going anywhere. Those who have been waiting for a price drop for the last 5 years have lost an average of 30–40% from the current value of properties.
How much have real estate prices in Torrevieja increased in recent years?
According to the Registro de la Propiedad, average prices in the province of Alicante increased by 8–12% in 2024. In several areas of Torrevieja and Orihuela Costa, the increase was even higher. A two-bedroom apartment that could be purchased for €70,000 in 2020 now costs €100,000–€120,000 and above.
Why is new affordable housing not being built in Torrevieja?
The construction industry in Spain has not yet fully recovered from the crisis of 2008–2012. The rise in the cost of building materials and labor after the pandemic has made new affordable housing economically unviable for developers. The volume of new projects in Torrevieja is significantly lower than demand, which supports prices in the secondary market.
Which areas of Torrevieja are the most promising for purchase?
Properties near the promenade and the first line of the sea in the central part of the city are the most liquid. The Torreta area shows stable growth. La Mata and the suburbs of Orihuela Costa (Playa Flamenca, La Zenia) are attractive to buyers who value a quieter environment. Specific recommendations on areas will be provided by Granfield Estate managers who have been working in the region for many years.
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