Occupancy, nightly rates, running costs and tourist licences: how to estimate realistically the yield of a new-build home on the Costa Blanca.
A coast with year-round demand
The Costa Blanca welcomes visitors twelve months a year: families in summer, golfers and hikers in spring and autumn, and Northern Europeans spending the winter in the sun. With Alicante-Elche airport less than an hour from most of the coast, holiday rental demand is steady and highly international.
Even so, yield is not the same everywhere. It depends on the town, distance to the beach, sea views and, above all, on how the property is managed.
What yield is realistic
For a well-located new-build home, a gross annual yield of 4% to 6% is a prudent benchmark. Higher figures seen in some adverts usually assume peak-season occupancy all year round, which rarely happens.
As a guide, a two-bedroom apartment near the beach can achieve 18 to 24 weeks of occupancy a year, with nightly rates roughly doubling between January and August.
The costs to deduct
Net yield appears once real costs are taken into account:
- Community fees, IBI property tax and waste collection.
- Home insurance covering rentals.
- Management, cleaning and laundry, usually 15% to 25% of income.
- Booking platform commissions.
- Utilities, maintenance and income tax on rental earnings.
The tourist licence
In the Valencia region, a home let by the night must be entered in the register of tourist accommodation, and each town hall may set its own limits. Before buying with this goal, check that both the development and the municipality allow it. Our advisors review this with you before you reserve.
How to improve the result
The best-performing homes share a few features: a large terrace, communal pool, air conditioning, a parking space and a location within walking distance of shops and services. New builds add a clear advantage: lower maintenance costs in the first years and high energy efficiency.
To run the numbers on a specific home, try our yield calculator or ask your advisor for a personalised study.
Sources and references
For information only: not legal or tax advice, or a guarantee of returns. Confirm the terms of your transaction with an independent professional.
