We Bought Property in Costa Blanca North in 2004 – What We Learned Through Floods, Crash & Recovery

Buying Property on Costa Blanca North in 2026: Our Real Story from 2004 Boom, Gota Fría Floods & 2008 Crash

Good morning from the Sun Sea Sangria terrace ☀️🍷

One of the questions I get asked a lot is: “What’s the property market like on the Costa Blanca North right now?” So today I’m sharing our own real story — the highs, the lows, the floods, the crash, and everything in between.

Our First Steps – 2004 & 2006

We bought our first apartment in Cumbre del Sol (Benitachell) in 2004. It was a lovely 3-bedroom duplex with those stunning sea views that made waking up feel like a holiday every day. Two years later, in 2006, we bought a second apartment in Jávea.

It wasn’t all plain sailing, though.

Just months after we got the keys to the Cumbre del Sol apartment, we were hit by a Gota Fría. Heavy rain caused the garden to flood straight into the downstairs rooms of our duplex. We came back one afternoon to find water pouring through the doors — absolute chaos.

The building company even tried to blame it on our brand-new washing machine (yes, really — that’s a story for another day 😂).

On top of that, we quickly realised how car-dependent Cumbre del Sol really is. During the sales process, they promised a regular bus service was coming… the people still living there are still waiting 20+ years later. Unless you’re a very keen walker with strong legs, you absolutely need a car to get anywhere.

So when we decided to buy the second apartment in Jávea, we made damn sure it was close to all amenities and properly rain-proof this time 😂.

The market was booming back then. Prices were climbing fast, mortgages were easy to get, and it felt like the whole coast was exploding with new developments. We bought both to rent out to tourists and long-stay visitors, and for the first few years, the income was good.

The Crash Hits Hard (2008 onwards)

Then came 2008 and the global financial crisis. Spain was one of the worst-hit countries. Construction stopped, prices dropped dramatically (some areas saw 30–50% falls), and rental demand dried up almost overnight.

We held onto both properties through the tough years. There were times when it was stressful — empty weeks, lower rents, and the worry of whether the market would ever recover. But we kept them maintained and waited.

The Recovery Years & VT Tourist Licences

From around 2014, the market slowly started turning again. International buyers returned, especially from northern Europe.

Then, in 2016/2017, the Valencian government introduced the VT tourist licence (Vivienda Turística). Suddenly, if you wanted to rent your apartment short-term (under 10–30 days, depending on the rules), you needed an official licence. It was brought in to clean up the Wild West days of completely unregulated Airbnb-style rentals.

We had to register both our apartments and get the official VT number. More paperwork, more costs, but it made everything legal and professional. At the time, it felt like a sensible step.

The Market in 2026 – What Changed?

Looking back over 20+ years, the Costa Blanca North is very different now:

• Prices are strong again — often €2,800 – €5,500+ per m² for nice properties with views.
• Demand is more stable and driven by people who genuinely want to live here or have a proper second home.
• There’s been a massive increase in estate agents — every other shopfront in Denia, Calpe and Moraira seems to have a “Se Vende” sign these days.
• New builds are much stricter, but we’re also seeing loads of Ibiza-style villas popping up everywhere — those big modern white boxes with flat roofs, huge glass windows and infinity pools. Some look fantastic, others feel completely out of place next to traditional Spanish fincas.
• Tourist licences have become a whole different ball game. The Valencian government has now brought in a moratorium on new VT licences in many high-pressure areas (including parts of the Costa Blanca). A lot of town halls have simply stopped issuing new ones because of the housing shortage for locals. Existing licences are still valid (they last 5 years and need renewing), but if you’re buying now with the dream of easy tourist rental income, good luck — many properties simply can’t get one anymore.
• This crackdown is hitting the Spanish economy hard. Tourism is massive for Spain (it makes up a huge chunk of GDP), but short-term rentals have pushed up house prices and rents, making it tougher for locals to find somewhere affordable to live. The government is trying to rebalance things so residents aren’t pushed out, but it’s created a lot of uncertainty.
• And yes — scams are everywhere. We’ve heard too many stories of buyers being promised “no problem getting a VT licence” by estate agents, only to discover after they’ve paid their deposit that the property is in a moratorium zone or the community of owners won’t approve it. People have lost serious money on properties they can’t legally rent out short-term.

The wild speculation of 2004–2007 is mostly gone. Today it feels more mature… but also more regulated, more commercial, and a lot harder for new buyers chasing pure rental income.

What I Learned After All These Years

• Patience really matters. Those who held through the crash generally did well in the end.
• Location is everything — and not just for the view. You also have to think about flood risk, firebreaks, urbanisation maintenance, and now whether a VT licence is even possible.
• Rules and paperwork have increased massively since we started, but they’ve made the market safer and more professional.
• The dream of owning a piece of this coast is still alive, but it’s now a slower, more thoughtful process than it was in the mid-2000s.

Even though we no longer own those two apartments, we still love this area deeply. That said, in my opinion, the overbuilding and Ibiza-villa invasion is spoiling the character of some areas that used to feel properly Spanish.

Have you bought (or sold) property on the Costa Blanca?

When was your experience? What surprised you most — the boom, the crash, the recovery, the new VT licence rules, or the scams? Tell me in the comments. I read every single one.

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