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Costa Blanca or Mallorca: where to buy investment property

Costa Blanca or Mallorca is a choice between the most affordable mainland coast and the most expensive island. Costa Blanca around Alicante means a low entry point and high yield; Mallorca means premium, scarce land and resilient value. We compare on the real new-build numbers.

Comparison table

Metric	Costa Blanca	Mallorca
Average price per m²	€3,699/m²	€6,375/m²
Average rental yield	5.7%	5.5%
Price from	€120,000	€263,000
New-builds in catalogue	43	16
Climate	300+ sunny days, dry hot summers, mild winters	Mediterranean, warm summers, short mild winters
Typical buyer	Yield-focused investor, buyer with a budget up to €300,000	Large budget, capital preservation, Northern-European demand
Airports	ALC	PMI

Prices, yields and counts are computed from our new-build catalogue. Green marks the stronger side per metric.

Price per m²: side by side

Average price per square metre by coast, €

Rental yield: side by side

Average gross rental yield by coast, %

Who suits Costa Blanca

Costa Blanca suits an investor who wants to enter cheaply and reach profit quickly. The lowest price per m² among these markets and busy summer letting in Torrevieja and Orihuela Costa make it a convenient first deal and a cash-flow play.

Who suits Mallorca

Mallorca suits a large budget that values capital preservation over maximum yield. Limited land supply and Northern-European demand keep prices high and protect value through downturns.

How to choose

The price gap here is the widest: the price per m² on Mallorca is several times higher than on Costa Blanca. Costa Blanca wins on yield and entry point; Mallorca wins on value resilience and status. For rental income and an affordable price, choose Costa Blanca; for island luxury and capital preservation, choose Mallorca. These are two different scenarios, not rivals within one budget.

New-builds: Costa Blanca

Under construction · 2026 Q27% yield

Brisa Sky

📍 Torrevieja, Costa Blanca

🛏 3🛁 2📐 129 m²Apartment

€385,000 · €2,983/m²

Key-ready · Completed7% yield

Horizon Golf

📍 Orihuela Costa, Costa Blanca

🛏 3🛁 2📐 130 m²Townhouse

€463,000 · €3,561/m²

Off-plan · 2027 Q27% yield

Costa Gardens

📍 Guardamar del Segura, Costa Blanca

🛏 3🛁 2📐 121 m²Apartment

€411,000 · €3,398/m²

New-builds: Mallorca

Off-plan · 2027 Q26.8% yield

Puerto Boulevard

📍 Palma, Mallorca

🛏 2🛁 1📐 85 m²Apartment

€640,000 · €7,527/m²

Off-plan · 2026 Q46.7% yield

Altos Terraces

📍 Santa Ponsa, Mallorca

🛏 1🛁 1📐 61 m²Apartment

€489,000 · €8,020/m²

Under construction · 2026 Q26.4% yield

Marea Park

📍 Santa Ponsa, Mallorca

🛏 3🛁 2📐 169 m²Penthouse

€979,000 · €5,793/m²

Frequently asked questions

How much more expensive is Mallorca than Costa Blanca?

Substantially: the price per m² on Mallorca is several times higher than on Costa Blanca — the widest price gap among our comparisons. The island entry point is notably higher.

Where is the rental yield higher?

On Costa Blanca: the low entry price and strong summer demand deliver a higher gross yield. Mallorca yields less but holds value more firmly.

Which should I pick on a limited budget?

On a budget up to €300,000, Costa Blanca is realistic. Mallorca is barely accessible for new-builds in that range — the island targets the premium segment.

Which is safer long-term?

Mallorca preserves capital better thanks to scarce land, but Costa Blanca pays back faster through rent. The choice depends on whether preservation or yield matters more to you.