Bubble or Relity?

Bubble or Reality? What’s Happening with Housing Prices in Torrevieja in 2025

If you’ve been following the real estate market in Torrevieja, you’ve probably asked yourself the same question many others have:
are we in a bubble, or does the price increase make sense?

The short answer: this is not a bubble like in 2008, but we are living through a unique moment.

📈 Prices Keep Rising

Over the past 12 months, housing prices in Torrevieja have grown by double digits. We’re talking about averages already above €2,200/m², with areas like La Mata or Torre del Moro reaching almost €3,000/m². And the most striking part: well-located and well-maintained properties sell within weeks.

🌍 The Role of Foreign Buyers

The main driver is clear: international demand. More than 40% of purchases in the Alicante province now come from European buyers. Nordics, French, Belgians, and British continue to bet strongly on Torrevieja.
For them, our prices are still competitive compared to their home countries, and they’re looking both for second residences and rental investments.

🏗️ Shortage of Quality Supply

New construction is not keeping up with demand. Yes, there is new build, but much less than the market could absorb.
This means that second-hand homes in good condition, or in prime locations, are appreciating much faster.

🔍 So, is it a bubble?

The difference with 2008 is clear:

• Today’s demand is real, often with cash buyers.
• Foreign buyers are diversifying and seeking stability in Spain.
• Bank financing is much more controlled.

That’s why we’re talking about a growing market, not an artificial bubble.

💡 What Does This Mean for You?

• If you’re a homeowner, this is a very favorable moment to sell. Your property might be worth more than you think.
• If you’re a buyer, the sooner you enter, the better. Prices show no sign of dropping in the short term.
• If you’re an investor, Torrevieja still offers attractive rental yields, both vacation and long-term.

💬 My Personal Take

After many years of watching the market in Torrevieja, I can tell you clearly:
this is not smoke, this is real demand. The city keeps growing, attracting people from all over the world, and offering a lifestyle that is hard to find elsewhere.

Will prices drop? Personally, I don’t see that happening anytime soon. They might stabilize at some point, but interest in Torrevieja and the Costa Blanca is still very strong — and I see it every day in property visits and sales.

If you’re wondering about selling, buying, or investing, I’d be happy to talk it through with you directly. There’s nothing like analyzing your specific situation together to see what the smartest move is right now.