Quick answer: Market data available in August 2026 does not support a "wait for a price drop" strategy. Torrevieja and Guardamar del Segura are among the Spanish municipalities with the highest demand-to-supply pressure. Prices in Alicante province rose 14–16% year-on-year in 2025, and forecasts point to moderate but sustained growth through 2026. That does not mean you should buy at any price — but it does mean the "prices will fall" logic has no empirical support in this specific market right now.

The question everyone asks in August 2026

Every summer, Costa Blanca's peak season brings the same question from international buyers viewing properties: "Is now a good time to buy, or should we wait?" It is a legitimate question. Prices have risen sharply in the past three years. Economic uncertainty in Europe persists. Nobody wants to buy at the top of a cycle. The problem is that a correct answer requires data, not intuition. Here is the data.

What supply and demand numbers show

In June 2026, idealista published an analysis of demand pressure relative to supply across Spanish municipalities. Alicante province stands out: sixteen municipalities appear on the list of places with the highest demand pressure relative to supply in all of Spain. Among them: Torrevieja, Guardamar del Segura, Benidorm, Santa Pola, Dénia and Elche.

In practice: quality property in well-located parts of Torrevieja and Guardamar sells in weeks, not months. Vacancy rates for good long-term rental apartments in these areas sit at 2–4%, compared with 5–8% in more seasonal or inland zones. On the supply side, the situation is structural: the Coastal Protection Law limits new construction close to the shoreline, material costs remain elevated, and new project delivery does not keep pace with demand. This is not a temporary imbalance that resolves in a year.

How much have prices risen and how much more can they go?

Alicante province prices rose 14–16% year-on-year in 2025 — one of the strongest increases in nearly two decades. On Costa Blanca South, the pace is somewhat more moderate:

Bankinter and other analysts forecast 5–7% national price growth for 2026, with high-demand coastal zones at the upper end of that range. Fitch Ratings projects Spain as one of Europe's strongest housing markets in 2026, with 8–10% national growth driven by structural supply shortfall.

Can prices fall? Nothing is impossible in nominal terms. But in the specific markets of Torrevieja and Guardamar, where demand structurally exceeds supply and quality available stock is limited, a significant correction in the short term has no support in current data.

The real cost of waiting

This is the calculation most people skip before deciding "I'll wait a bit longer." If the property you want today costs €200,000 and the market grows 6% over the next twelve months:

Add to that the opportunity cost of rent you pay while waiting — or rental income you don't earn if you already have the capital available. 12-month Euribor stood at around 2.722% in late May 2026. Fixed mortgage rates for non-residents sit between 2.8% and 3.5% — well below the 2023 peak of 4.2%.

When waiting does make sense

Waiting is not always irrational. Specific situations where postponing a purchase makes sense:

If your documentation is not in order. Trying to buy quickly without a NIE, without a lawyer and without a pre-approved mortgage is a recipe for overpaying or buying whatever is left.

If the specific product you want is not available. If you want beachfront in La Mata with a tourist licence included at a constrained budget, there may be nothing suitable this month. Waiting for the right product makes more sense than buying something that does not fit just to avoid missing the market.

If your financial situation is not consolidated. Buying with tight liquidity or without a reserve for unexpected costs is a mistake regardless of where the market is. Buying costs in Spain (ITP 9% + notary + registry + admin) total 10–11% above the purchase price for resale. Plus moving costs, adaptation and community reserve fund contributions.

If you have not seen the property in person. In the current market, buying from photos or video without visiting the property and its surroundings is a real risk.

What the rental market says about buying timing

Alicante rents rose 9.1% year-on-year in 2026. Vacancy rates for quality long-term rental housing in Torrevieja and Guardamar are 2–4%. For an investor, the asset starts generating income from month one. Gross rental yield in Torrevieja ranges from 4.6% to 8.4% by location. In Guardamar, 5–7%.

If you buy today at €200,000 and generate €12,000 gross annual rental income, you are getting 6% gross. If you wait twelve months and the same property costs €212,000, you need to generate more rental income for the same return — in a market where rental prices are already rising due to supply scarcity.

What the data recommends

Buy when the product is right and your financial situation is ready — not when the day's headline says the moment is perfect.

In Costa Blanca South in August 2026, the objective conditions are: demand exceeding supply in Torrevieja and Guardamar, prices growing at a moderate but sustained pace, mortgage rates lower than two years ago, and a rental market that supports yield.

Browse properties in Torrevieja and properties in Guardamar del Segura, or contact Naranja Spain for a direct conversation about your situation. For the full buying cost breakdown, read our guide on the true cost of buying property in Spain and why prices keep rising.

This article is for informational purposes only and does not constitute financial or investment advice. Always consult a qualified Spanish lawyer and financial adviser before making a purchase decision.