Finding 6%+ Rental Yields on Costa Blanca
Rental yield is the single most important metric for income-focused property investors. On Costa Blanca, yields vary dramatically by location, property type, and distance from the coast. Using our database of 1,881 new build properties, we mapped every town to identify consistent 6%+ performers.
The Yield Map
The highest-yielding areas cluster along the Costa Blanca South corridor, stretching from Guardamar del Segura through Torrevieja to Orihuela Costa and into Pilar de la Horadada. This belt benefits from strong Airbnb demand during the peak season (June through September) and a growing long-term rental market driven by remote workers and retirees.
Top 5 Yield Towns
1. Torrevieja -- Average gross yield: 6.8% Torrevieja dominates on volume and yield. Two-bedroom apartments priced between EUR 145,000 and EUR 195,000 generate weekly rental income of EUR 650-850 during peak season. Annual occupancy rates for well-managed properties hover around 75%.
2. Guardamar del Segura -- Average gross yield: 6.5% Guardamar offers a quieter alternative to Torrevieja with comparable yields. New builds here tend to be slightly larger, with better communal areas.
3. Orihuela Costa -- Average gross yield: 6.4% The urbanizaciones of Orihuela Costa (La Zenia, Cabo Roig, Playa Flamenca, Villamartin) deliver reliable yields supported by an established holiday rental infrastructure.
4. San Pedro del Pinatar -- Average gross yield: 7.1% This Costa Calida town edges into our Costa Blanca analysis due to its proximity. It offers the highest raw yields in the broader region, driven by very competitive purchase prices.
5. Pilar de la Horadada -- Average gross yield: 6.3% Sitting at the southern tip of Alicante province, Pilar benefits from proximity to both Murcia and Alicante airports.
Why Yields Differ
Three factors explain most yield variation on Costa Blanca:
Purchase price is the denominator in the yield equation. Towns with lower entry prices naturally produce higher yields if rental rates are comparable.
Seasonal demand matters enormously. Properties within 2km of the coast and with communal pools achieve 30-50% higher nightly rates than inland equivalents.
Property management quality separates successful rentals from underperformers. Professional management typically costs 15-20% of rental income but increases occupancy by 20-30 percentage points.
The North-South Divide
Costa Blanca North (Javea, Moraira, Altea, Calpe) delivers lower yields, averaging 4.2-5.0% gross. Higher purchase prices are the primary drag. However, these areas offer stronger capital appreciation and attract longer-stay tenants.
All yield calculations use Avena Terminal methodology: estimated annual rental income divided by asking price, before expenses.