Rental investment on the Costa Blanca is not a single market — it is half a dozen different markets with very different risk profiles, yields, entry prices and guest types. Benidorm and Moraira are both on the Costa Blanca, but they are about as different as an investment as you can get.
This guide ranks the main Costa Blanca areas for rental investment in 2025, with honest data on yields, occupancy, entry prices and what catches investors out. We base our analysis on real rental market data, not developer projections.
The basics: how rental investment works on the Costa Blanca
Short-term tourist rental (alquiler turístico) is the primary rental model for most investment buyers on the Costa Blanca. Properties are let on a weekly or nightly basis through platforms like Airbnb, Booking.com and direct booking sites, primarily in the April–October season.
Key figures to understand before comparing areas:
- Gross yield: total annual rental income ÷ purchase price × 100. Before costs.
- Net yield: income after management fees (15–22%), platform fees (3–15%), maintenance, utilities, IBI, community fees and insurance. Typically 1.5–2.5 percentage points below gross.
- Occupancy rate: the percentage of available nights that are actually booked. 70–85% in peak season is strong; 40–55% year-round average is realistic for most areas.
- Average daily rate (ADR): what guests pay per night. Varies enormously by location, property type and season.
Tourist rental licence — non-negotiable
To legally rent your property on a short-term basis in the Valencian Community, you need a tourist rental licence (Vivienda de Uso Turístico — VUT). Renting without one is illegal and fines can be substantial. Licences are increasingly restricted in some areas. Always verify the licence situation before buying a property specifically for rental income — see the full section below.
Area rankings — best for rental investment 2025
1
Benidorm
Best gross yield · Highest volume
Benidorm delivers the highest gross rental yields on the Costa Blanca, driven by 12 million annual tourists and two of the most popular beaches in Spain. A well-positioned 2-bedroom apartment near Levante beach can generate €20,000–€28,000 gross per year — a gross yield of 5–7% on a €300,000–€400,000 property. Entry prices are the lowest of any beach area in this ranking, which helps the yield calculation. The management ecosystem is well-developed — numerous professional property managers operate here with established systems. The trade-off: Benidorm attracts a mass-market guest profile, the property market is more competitive and the town's reputation does not suit every investor's personal taste. But purely on rental income numbers, it consistently outperforms more exclusive areas.
Highest gross yield
Lowest entry price
Huge tourist demand
Long season
Mass market profile
High competition
2
Torrevieja / Orihuela Costa
Volume + value · Best entry price
Torrevieja and the wider Orihuela Costa (including Punta Prima, Campoamor, La Zenia) combine the lowest entry prices on the Costa Blanca with strong rental demand driven by proximity to Alicante airport (just 45 minutes). The area attracts a high proportion of British, Scandinavian and Eastern European visitors, with strong repeat-booking rates. Bungalows with private gardens are particularly popular rental properties in this area — they offer outdoor space at a much lower price than villas in the north. The long-term investment case is solid but less spectacular than Benidorm; yields are good but the premium uplift potential is more limited.
Airport proximity
Lowest entry prices
Good repeat bookings
Less capital growth
Budget market mainly
3
Calpe
Balance of yield and lifestyle
Calpe occupies the sweet spot between investment yield and personal enjoyment. The Peñón de Ifach provides a dramatic backdrop that photographs exceptionally well on rental platforms — a genuine marketing asset. Two Blue Flag sandy beaches create strong summer demand. Entry prices are affordable for the northern Costa Blanca and rental rates are solid. Apartments near Playa de la Fossa with sea views consistently achieve €1,200–€1,800 per week in July and August. The Dutch and Scandinavian guest base tends to be reliable and respectful of properties — important for long-term wear and maintenance.
Sandy beaches
Iconic visual appeal
Reliable NL/SC demand
Affordable entry
Quieter than Benidorm
4
Jávea
Premium yield · Lower volume, higher rate
Jávea generates lower gross yields than Benidorm or Torrevieja — because entry prices are higher while weekly rental rates, though excellent in absolute terms, do not rise proportionally with property prices. However, the profile is very different: Jávea attracts high-quality guests who book premium villas for 1–2 weeks, treat properties well and leave positive reviews. A 4-bedroom villa near Cap de la Nau can generate €60,000–€80,000 gross per season. For investors who also plan to use the property personally, Jávea combines the best lifestyle with a respectable investment return. For pure yield maximisation without personal use, other areas perform better.
Premium guest profile
High absolute income
Strong capital growth
Long extended season
Higher entry price
Lower gross %
5
Dénia
Underrated · Ferry advantage · Family demand
Dénia is consistently undervalued as a rental investment. Its 20km of sandy beaches generate strong family rental demand, entry prices are lower than Jávea, and the ferry connection to Ibiza and Mallorca is a genuine differentiator — guests appreciate being able to combine a Costa Blanca stay with a Balearic island day trip or mini-break. The Las Marinas beach strip is the prime rental zone. Properties here achieve good occupancy from April to October with strong summer rates. The main limitation is that Dénia lacks the prestige address of Jávea, which limits the very top of the weekly rate range.
Ferry to Ibiza/Mallorca
20km sandy beaches
Lower entry than Jávea
Strong family demand
Less prestige address
6
Moraira
High absolute income · Low gross yield
€4k–€12k
Weekly villa rate
Moraira produces the lowest gross yield of any major Costa Blanca area, simply because property prices are so high relative to achievable rental rates. However, the absolute rental income for top-end villas is exceptional — a 5-bedroom villa in El Portet can generate €10,000–€15,000 per week in peak season. The guest profile is the most affluent of any area in this ranking and repeat booking rates are unusually high — many Moraira guests rebook for the following year during their stay. For buyers who want the best of Moraira as a lifestyle investment with rental income as a secondary benefit, the numbers work well. For pure yield investment, it ranks last.
Highest absolute rates
Loyal repeat guests
Premium property values
Exclusive address
Lowest gross yield %
Highest entry price
Yield comparison table — Costa Blanca 2025
| Area | Entry price | Gross yield | Net yield (est.) | Best for |
|---|
| Benidorm | €200k | 5–7% | 3–4.5% | Max yield |
| Torrevieja / Orihuela Costa | €200k | 4.5–6% | 3–4% | Budget investment |
| Calpe | €200k | 4–5.5% | 2.5–4% | Yield + lifestyle |
| Jávea | €280k | 3.5–5% | 2–3.5% | Premium + personal use |
| Dénia | €200k | 3.5–5% | 2–3.5% | Family market |
| Altea | €220k | 3.5–4.5% | 2–3% | Quality + culture |
| Moraira | €350k | 3–4% | 1.5–2.5% | Luxury lifestyle |
The tourist rental licence — the most important thing
The tourist rental licence (Vivienda de Uso Turístico — VUT) is the legal requirement for short-term letting in the Valencian Community. Without it, you cannot legally list your property on Airbnb, Booking.com or any other platform. Renting without a licence is an administrative offence with fines of up to €150,000 in serious cases.
What you need to know
- Licences are issued by the Generalitat Valenciana (regional government), not the local council
- The property must meet minimum habitability standards — valid habitation certificate, adequate bedroom sizes, fire safety equipment
- Community of owners (comunidad) rules may prohibit tourist rentals — always check the statutes before buying
- Some urbanisations in Jávea and Moraira have voted to ban tourist rentals in their community rules
- Dénia and other municipalities are progressively restricting new licences in certain zones
- Existing licences transfer with the property if correctly registered — buying a property that already has a licence is significantly less risky
Always verify the licence before you buy
If you are buying specifically for rental income, your purchase offer should be conditional on confirming that a tourist rental licence either exists and is transferable, or that a new licence can be obtained. Your independent lawyer must verify this before you pay any deposit. This single check prevents the most common and costly investment mistake on the Costa Blanca.
The 5 most common rental investment mistakes on the Costa Blanca
1. Not verifying the licence before signing
Already covered above — but it bears repeating because it is the single most common and costly mistake. Never assume a licence exists or is obtainable. Verify it in writing before signing any contract.
2. Using developer rental projections
New development brochures often include projected rental income figures. These are almost always optimistic — they assume 100% occupancy at peak-season rates, with no management fees, maintenance or void periods. Real net yields are typically 30–40% below developer projections in the first few years. Use independent data.
3. Underestimating management costs
Professional property management on the Costa Blanca typically costs 18–22% of gross rental income. This covers cleaning, key handover, guest communication, maintenance coordination and platform management. Add platform fees (Airbnb charges hosts 3%, Booking.com 15%), and you are looking at 20–35% of gross income in management and platform costs before you start on maintenance, utilities and taxes.
4. Ignoring the community rules
Spain's horizontal property law allows communities of owners to vote to ban or restrict tourist rentals in their development. A 3/5 majority is required. Some communities in Jávea, Calpe and Moraira have already done this. If you buy in such a community without checking, you may own a property you legally cannot rent out.
5. Treating it as a pure investment without personal use planning
The best returns on Costa Blanca property come from combining investment and personal use intelligently. Peak weeks (mid-July to mid-August, Easter, Christmas) should be blocked for family use or rented at maximum rates — not given away to fill occupancy. Properties managed with a clear strategy consistently outperform those that simply accept any booking at any price.
Our honest verdict
If pure rental yield is your primary objective: Benidorm or Torrevieja. Lower entry prices, proven demand, highest gross percentages. Accept the trade-off that these are not lifestyle destinations for you personally.
If you want to combine good rental income with a property you genuinely love: Calpe or Jávea. Strong rental markets, quality guest profiles and locations you will actually enjoy using. The yield percentage is lower but the total experience — investment plus personal enjoyment — is better.
If rental income is secondary to lifestyle and capital preservation: Moraira. You will not maximise your yield percentage, but you will own an asset in one of the most desirable and scarcity-protected locations on the Mediterranean.
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