Marina Alta Housing Prices Unsustainable, Exceeding Real Estate Bubble Levels

A report reveals that housing costs in Xàbia, Dénia, and Calp are the highest in the Valencian Community, surpassing Valencia city.

Generic image of euro coins and keys, representing housing costs.
IA

Generic image of euro coins and keys, representing housing costs.

Housing prices in Marina Alta reached historic highs in the fourth quarter of 2025, outpacing salary growth and the real estate bubble, according to a study presented in Xàbia.

The report, prepared by the Chair of the Real Estate Market at the University of Zaragoza and presented by its director, Luis Alberto Fabra Garcés, highlights that Xàbia records the highest prices in the Valencian Community, at 3,436 euros per square meter. It is followed by Benidorm and Calp, all three with a higher cost per square meter than Valencia city, which ranks fourth. Dénia is very close to the regional capital in terms of housing costs.
Housing prices continued to rise in all municipalities in the region during 2025 compared to the previous year. Meanwhile, the supply of properties has begun to decrease, with a reduction in sales transactions. Fabra warned that this price increase “is not sustainable” and “already exceeds that of the real estate bubble,” although the current market is more stable.

"This increase is not sustainable and already exceeds that of the real estate bubble, although it is also true that the market is now more stable."

Luis Alberto Fabra Garcés · Director of the Chair of the Real Estate Market at the University of Zaragoza
The current situation makes access to decent housing almost impossible for young people and the middle class, leading to an “expulsion” of local buyers. Alternatives include moving to inland municipalities or increasing debt levels, which Fabra considers “not socially sustainable.” For example, in 2024, real estate portals offered about 2,200 homes in Xàbia, a figure that has now dropped to 1,350. Additionally, the Dénia City Council collected 3.8% less in urban planning revenue in 2025.
The study also indicates that building more homes in Marina Alta would not necessarily reduce prices, as demand from foreign (and national) clients willing to pay high prices for luxury homes remains strong. The solution would involve promoting protected housing and social rental policies, initiatives that still face significant difficulties. Despite a slight moderation expected for 2026, activity levels and prices will remain high.
Foreign buyers continue to be a key market driver. In Xàbia, 64% of property purchases were made by foreigners. The new development is the strong presence of Dutch buyers, who have overtaken the British, along with Belgians, Poles, Germans, Ukrainians, Russians, Swedes, and French.