Overpricing stalls sales: real market data from the Costa Blanca

Setting a property price on the Costa Blanca based on what was paid for it at the time, what a neighbour asked for theirs, or whatever figure is needed to cover a mortgage is a mistake we see repeatedly, particularly among non-resident owners. The result is always the same: the property comes to market, generates some initial activity during the first two or three weeks, then falls into a silence that can last months. The market is not standing still. The price is wrong.

Why a high price generates silence, not negotiation

There is a common belief that asking more leaves room to negotiate. In practice, in Orihuela Costa, La Zenia, Cabo Roig and across the southern Costa Blanca, today's buyers work with property portal alerts and have instant access to dozens of comparable listings. When a property is overpriced, they do not make low offers: they simply ignore it and move on to the next one. Negotiation only happens when a property is within the price range the buyer considers reasonable.

Market tracking data from Casafari and notarial records from the southern Alicante area show a clear pattern: correctly priced properties sell within an average of 45 to 75 days. Those launched at 10% above market value take between 4 and 6 months to sell. Properties priced 20% above market can remain unsold for more than 9 months, and most end up selling for less than they would have achieved had they been priced correctly from the start.

Staged reductions and how they burn the asset

When a property does not sell, the typical reaction is to reduce the price, but in small steps: first 3%, then 5%, then another 4%. Each reduction briefly reactivates portal views and generates a few enquiries, but the effect is short-lived. The listing accumulates age on the market, and that age becomes a problem in itself.

We have been managing transactions in this area since 1988 and have seen this same pattern hundreds of times: when a property has been listed for more than six months, buyers start wondering why no one has bought it yet. They assume there is some problem not visible in the listing and, if they do make an offer, they pitch it well below what they would have offered had they seen the property freshly listed. The asset becomes burnt and recovering its perceived value is very difficult without withdrawing it from the market for a period.

Comparison table: correct price versus overpricing

The table below summarises what happens to a hypothetical property valued at €200,000 depending on the asking price:

The final sale price in the overpriced scenario is not higher than in the correctly priced scenario: it is equal to or lower. The difference lies in how long the seller has waited and the costs they have continued to carry during that time.

What is happening in the southern Costa Blanca market in 2026

Completed sale prices registered at the notary during the first half of 2026 in the main zones of the southern Costa Blanca show well-defined ranges. Listing outside those ranges without a clear objective reason (recent full renovation, direct sea views, large plot) means the property will not sell at that price.

• La Zenia: €2,100–€2,350/m² for two-bedroom apartments in good condition.
• Cabo Roig: €2,400–€2,700/m² for properties with sea views or on the front line of the development.
• Orihuela Costa (mid-zone): €1,850–€2,200/m² depending on orientation and condition.
• Playa Flamenca: €2,000–€2,300/m² for 2000s-era apartments with communal pool.
• Punta Prima: €2,200–€2,500/m² for bungalows and ground-floor apartments with private garden.
• Villamartín: €1,700–€1,950/m² for properties without special views, set back from the golf course.
• Zeniamar: €1,650–€1,900/m² for standard apartments, with the upper range for renovated units.

These are averages from completed transactions. Portal asking prices are consistently higher, because they reflect sellers' expectations, not what the market has actually accepted.

Why today's buyer will not accept an inflated price

The buyer profile on the southern Costa Blanca has changed. Most are northern Europeans with prior experience in their home property markets, who research before they buy. In our experience, the typical buyer views between 6 and 12 properties before making an offer. They have tools to check how long a listing has been on the market and what similar properties in the same development have sold for. The room for an aspirational price that existed ten years ago is gone.

How to calculate the right price before going to market

The only valid starting point is a comparative market analysis based on recent completed sales, not on asking prices. To do it properly, you need to consider:

• Notarial sales of comparable properties within 500 metres over the past six months.
• The actual condition of the property: fully renovated, original state, or partial improvements.
• Orientation, floor level and type of views.
• Community fees and any pending special assessments.
• Age of the building and the general condition of the development.
• How long the property has already been on the market and whether it has had previous price reductions.

The resulting price may not match what the owner was hoping to hear. But it is the price that produces a sale within a reasonable timeframe, and that is where the real value lies.

The cost of waiting for the market to rise

Some owners prefer to wait for the market to catch up with them. On the southern Costa Blanca, where buyers are mostly foreign nationals and prices are influenced by exchange rates, mortgage rates in their home countries and the European economic cycle, waiting for the market to rise enough to justify a current overpricing is not a strategy: it is a bet with no clear odds in its favour.

We have handled more than 5,000 transactions since 1988 and the pattern is consistent: owners who set a reasonable price from the start sell sooner, at a price equal to or better than those who try a high price first and then work their way down. The difference in the final price rarely justifies the months of waiting, the accumulated costs and the strain of maintaining an unsold property in another country.

If you have a property in La Zenia, Cabo Roig, Orihuela Costa, Playa Flamenca or anywhere else on the southern Costa Blanca and want to know what it would realistically sell for today, call us on +34 965 714 362 or write to info@bennecke.com. We will give you a market analysis based on completed sales, with no inflated figures the market will never confirm.