More and more international buyers are not just looking for a second home on the Costa Blanca: they want that home to generate income when they are not using it. Holiday rental yield in the area usually ranges between 5% and 8% in high season, but that figure varies greatly depending on location, proximity to the beach, the quality of management and whether the property is new-build or resale. In this article we review which areas of Jávea, Altea, Calpe, Moraira and Finestrat offer the best real returns, and which factors truly make the difference between an investment that works and one that stays a promise.
What the industry data says
According to specialist market analyses, the average gross holiday rental yield on the Costa Blanca is between 5% and 7.4% per year, depending on the area and type of product. But this figure is not uniform: a beachfront apartment in Calpe or Jávea usually yields around 5–6% gross, while a premium villa with a private pool in Finestrat, Altea Hills or Moraira tends towards 4–5% gross — lower as a percentage, but on a larger investment and with more scope for capital growth.
Moraira:
Lower volume, higher nightly rate
Moraira does not compete on the number of bookings but on rate: thanks to a high-spending, mainly British tourist profile and a limited supply of premium product, it maintains nightly prices above €165 even in mid-season, according to industry comparisons. It is an area that requires more investment in maintenance to sustain that standard, but it rewards owners with demand that is less price-sensitive.
Calpe and Jávea:
The balance between demand and regulation
Calpe and Jávea concentrate a large part of the area's actual tourist supply — Calpe has around 19,600 registered tourist beds according to the annual report by HOSBEC, the Valencian Community's tourism business association — which confirms well-established demand. However, both municipalities, together with Altea and Benidorm, have tightened the granting of new tourist licences in recent years or introduced moratoriums in certain areas. This does not mean you cannot invest, but it does mean you should check the specific regulatory situation of each property before buying with holiday rental in mind.
And the rest of the Costa Blanca:
It has its place too
Altea and Finestrat do not stand out for dramatically higher returns than the rest, but they do offer something many buyers value as much as the yield figure: stability and less regulatory pressure in certain specific areas. Altea, with its mix of old town and developments such as Altea Hills, attracts buyers looking for a premium villa with a private pool — the same 4–5% gross segment mentioned above — while Finestrat, more closely linked to Benidorm Bay, benefits from the area's huge tourist demand without carrying some of the stricter restrictions that do affect municipalities such as Benidorm or Calpe.
Dénia, although not in the title of this article, deserves a mention: according to HOSBEC's own data, it is one of the municipalities with the largest number of registered tourist beds in the whole of the northern Costa Blanca, almost on a par with Calpe. It shows that holiday rental demand is not concentrated in just two or three well-known names, but is much more widely spread than it first appears.
The practical conclusion is that there is no absolute "best area": there is the area that best fits the type of property, the budget and the guest profile you want to attract. That is why, before deciding where to invest, it is worth analysing each opportunity individually rather than going by the name of the municipality alone.
Gross is not the same as net
One of the most common mistakes when assessing an investment is to look only at the gross yield. Between property tax (IBI), community fees, utilities, insurance, maintenance and management, the gap between gross and net can be considerable: a 7.5% gross yield can drop to less than 3% net if management is not well planned from the start. If the property is also new-build, the starting point is usually better: lower initial maintenance and greater appeal to guests, two factors that help sustain the net return. You can see how this fits with the rest of the buying process in new-build property on the Costa Blanca in 2026, where we also review the specific risks of buying off-plan.
What really determines performance
Beyond the area, there are factors that weigh as much as, or more than, location:
Real proximity to the beach, not just the distance on the map, but the time it takes to walk there.
Quality and professionalism of management: a well-managed home can achieve significantly higher annual occupancy than one self-managed without experience.
A valid tourist licence: without it there is no possible return, however attractive the area may seem.
Condition and quality of the property: new-build homes usually generate fewer incidents and a better guest perception, which translates into better reviews and more repeat bookings.
If you want to compare purchase prices in each of these areas before calculating your expected yield, in Costa Blanca property prices by municipality we break down recent trends area by area.
At GG Real Estate Costa Blanca we help international buyers identify which properties offer a real balance between entry price, expected yield and quality of life. Browse our property catalogue and talk to our team with no obligation.
