How are prices and sales of second homes on the coast changing? We offer some advice to help you take this step.

With the arrival of summer and warmer weather, coastal property is once again taking centre stage, as a growing number of people consider buying a second home in these locations. Beyond its use as a holiday home, buying a property by the sea represents a change of pace and lifestyle for many people: an opportunity to enjoy more relaxed surroundings and leave behind the hectic pace of everyday life, even if only at certain times of the year.

At Testa Homes, we know that this growing interest is also accompanied by questions about matters such as choosing the right location and the taxes that need to be paid. That is why, in today’s post, we examine how prices and sales are developing in this segment of the market. We also offer some practical advice for anyone considering taking this step and introduce some of the opportunities we have available in coastal locations. Read on!

How is the coastal second-home market developing?

Property sales figures reveal a coastal market in which activity is heavily concentrated in the top destinations. According to sales data from Spain’s Ministry of Transport and Sustainable Mobility, activity remained particularly high in the city of Valencia in 2025, with 10,433 transactions. It was followed by Alicante, with 7,005; Torrevieja in Alicante province, with 6,902; and Málaga, with 6,301. These cities have established themselves as the market’s principal hotspots. The remaining activity is spread among other major destinations, such as Palma de Mallorca, with 5,134 transactions, and cities such as Orihuela in Alicante province, Marbella in Málaga province and Las Palmas de Gran Canaria, each of which recorded more than 4,000 sales.

Beyond these major hotspots, developments between 2024 and 2025 point to increasingly diverse demand along the Spanish coastline. Particularly significant increases were recorded in Puerto de la Cruz in Santa Cruz de Tenerife, at 39.8%; Benicarló in Castellón, at 33%; and Torremolinos in Málaga, at 27.1%. Increases of more than 20% were also seen in municipalities including Badalona in Barcelona, Tarifa in Cádiz, Cambrils in Tarragona and Algeciras in Cádiz.

An analysis of appraised property values in municipalities with more than 25,000 inhabitants, also based on data from the Ministry of Transport and Sustainable Mobility, provides a fuller picture of prices and their recent development. The market continues to be characterised by considerable differences between destinations. During the first half of 2026, the highest values were concentrated in Santa Eulària des Riu in the Balearic Islands, at €6,624 per square metre; Ibiza Town, also in the Balearic Islands, at €5,725 per square metre; and San Sebastián in Gipuzkoa, at €5,118 per square metre. These were followed by other high-end markets such as Sitges in Barcelona, Marbella in Málaga, Castelldefels in Barcelona and Getxo in Biscay, all of which exceeded €4,000 per square metre. At the other end of the market, the most affordable values were recorded in municipalities including Carballo in A Coruña, at €993 per square metre; Burriana in Castellón, at €1,071 per square metre; Benicarló in Castellón, at €1,268 per square metre; and Ribeira in A Coruña, at €1,398 per square metre.

Turning to recent trends, the market has seen particularly sharp increases in property values in certain coastal municipalities. Marín in Pontevedra led the increases at 31.1%, followed by Orihuela in Alicante at 28.6%, Puerto de la Cruz in Santa Cruz de Tenerife at 24.7% and Vinaròs in Castellón at 24.2%. Other municipalities recording significant growth of more than 20% included Arteixo in A Coruña, Jávea in Alicante, Gandía in Valencia, Algeciras in Cádiz, Candelaria in Santa Cruz de Tenerife and Puerto Real in Cádiz. This shows how upward pressure on prices is gradually spreading to other coastal markets.

Five key factors to consider before buying on the coast

Although buying a home by the sea is a decision that often generates excitement and high expectations, it also requires careful consideration of several factors before taking the final step. At Testa Homes, we have therefore brought together the following key points to help you make a more informed decision:

• Holiday letting can improve returns, but it requires much more intensive management. If the property is being purchased as an investment, the type of letting arrangement chosen will be crucial. Long-term letting offers more stable income and simpler management, although returns may be lower. Holiday letting, by contrast, can increase potential income but requires much more hands-on management, including frequent changes of guests, the coordination of cleaning, dealing with unexpected issues and greater wear and tear on furnishings. It is therefore important to weigh the pros and cons of each option on a case-by-case basis.
• The most exclusive location is not always the most profitable. When purchasing a holiday home on the coast, seafront areas and established destinations offer strong demand and stability. However, their higher prices can reduce the gross rental yield. Emerging municipalities or areas located close to the beach may offer a better balance between the initial investment and potential income, particularly where they benefit from good transport connections.
• Financing is usually more demanding than it is for a main residence. Before proceeding, it is important to bear in mind that financing conditions are generally more stringent for second homes than for primary residences. In many cases, banks will finance between 60% and 70% of the property’s value, meaning buyers need more savings to complete the purchase. Mortgages for second homes also tend to have shorter repayment calendars and more restrictive conditions. It is therefore advisable to examine the different financing options carefully before making a decision.
• Tax implications also affect the final return. When a second home is reserved for the owner’s personal use, the Spanish tax authorities treat it as generating imputed property income, which must be declared for personal income tax purposes. If the property is subsequently let, its tax treatment will depend on how it is used and how long it remains rented out. Furthermore, certain tax reductions available for other types of tenancy cannot be applied to holiday or seasonal lets. This makes it particularly important to understand the taxes associated with second-home ownership before reaching a decision.
• Choosing a refurbished property can help prevent unexpected problems. In coastal areas, humidity, salt-laden air and weather conditions can accelerate the deterioration of building materials, causing problems such as dampness, damaged façades, inadequate insulation and outdated installations. In this context, choosing a holiday home that has already been refurbished can be an attractive option. These properties may incorporate more efficient solutions and materials suited to the marine environment, while reducing the risk of additional costs or unforeseen work over the medium and long term.

Testa Homes: residential options for living near the coast

As an operator offering homes for sale and long-term rent, Testa Homes provides residential options in coastal locations designed to suit different lifestyles. Our portfolio includes modernised homes and refurbished communal areas, with improvements to energy efficiency, comfort and functionality. Our model is built around professional management and the principle that we manage homes, not assets. This translates into continuous service and close support throughout the entire residential journey.

In keeping with this approach, we offer a range of residential options in highly sought-after and attractive coastal locations, both on the Spanish mainland and on the islands. We have homes in cities including Alicante, Valencia, Almería, Palma de Mallorca and Las Palmas de Gran Canaria. They are designed for people looking for a second home near the sea, in well-connected locations with access to services and a consistently high quality of life, supported by professional management and continuous assistance.