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Property investment in Torre de la Horadada: market analysis

Photo: Fanny Hagan-Södervall
By veritySpain Editorial·6 min read··Methodology
5
New-build projects
€246k
Prices from
€492k
Up to
7.8
Avg. score

Property investment in Torre de la Horadada currently spans a price range of €246k to €589k across the 7 projects analysed by veritySpain, which awarded the municipality an average score of 7.8/10. That breadth of price points is unusual for a small Costa Blanca resort town: it reflects the mix of compact two-bedroom apartments near the fishing harbour and larger three-bedroom units a short walk from the beach. Transaction volumes in Alicante province have held up even as credit conditions tightened elsewhere in Spain, according to Registradores de España annual reports. Torre de la Horadada sits at the southernmost tip of Alicante, nine kilometres from Torrevieja and roughly forty from Murcia airport, a location that keeps it within reach of two international gateways.

Supply and project quality

Seven new-build schemes are currently tracked by veritySpain in Torre de la Horadada, a number that remains modest compared with neighbouring Pilar de la Horadada or Torrevieja, where supply pipelines are markedly deeper. Scarcity of buildable land along this stretch of coast has kept scheme sizes small: most run to fewer than sixty units. That limits the risk of sudden bulk discounting that can distort values in larger developments. veritySpain data shows an average score of 7.8 out of 10 across these projects, reflecting solid build quality and reasonable communal specifications. Buyers comparing towns should note that a lower project count also means fewer choices; anyone with specific requirements, say ground-floor access or a home-office room, may face a narrower shortlist here than in Orihuela Costa.

Price dynamics and comparable towns

At €246k at the lower end, Torre de la Horadada entry prices are broadly in line with Pilar de la Horadada but sit below comparable new build in Moraira or Altea, where sea-view premiums push starting prices considerably higher. The upper end at €589k signals that developers are pursuing a mid-to-upper segment rather than volume sales. Price growth across the broader Alicante coastal strip has been documented in successive housing reports by INE, though the pace varies considerably street by street and development by development. Buyers should benchmark individual asking prices against the veritySpain score for each project rather than relying on the municipal average alone. A high score at €320k may represent better relative value than a low score at €270k once resale and rental liquidity are factored in.

Rental market and holding costs

Torre de la Horadada has a year-round resident population, which reduces the vacancy cliff that affects purely seasonal resorts. Summer occupancy is driven by Spanish domestic tourists as well as northern European visitors, giving landlords two distinct tenant pools. Holding costs in Spain include IBI (local property tax), community fees, and the obligatory non-resident income tax declaration for owners who are not tax-resident in Spain. IVA of 10% applies to new-build purchases; resale properties attract ITP, which in the Valencian Community is currently set at 10%. These are well-established rates, not projections. A buyer paying €350k on a new-build unit should budget approximately €35k in purchase taxes and notary costs on top of the acquisition price. Net rental performance depends heavily on the management model, agent fees, and the specific location within the town.

Risk factors and due diligence

Seven projects in a small municipality means concentration risk: if one major developer delays or encounters licensing problems, the local new-build market can stall. Off-plan buyers in Spain are protected by the Ley 57/1968 guarantee framework, updated in recent years, which requires bank guarantees on stage payments for residential developments. Verify that any off-plan contract includes a first-demand bank guarantee, not an insurance policy, for each instalment beyond the reservation fee. Coastal building regulations under the Ley de Costas restrict development within a protected zone along the shoreline; a lawyer should confirm that any unit being purchased is outside the servitude zone. Legal due diligence fees in Spain typically run to around one percent of the purchase price for a straightforward transaction. Currency risk applies to buyers whose income is not denominated in euros.

Key takeaways

  • veritySpain tracks 7 projects in Torre de la Horadada with an average quality score of 7.8/10.
  • Price range of €246k to €589k covers compact apartments through to larger three-bedroom units.
  • Limited land supply keeps project sizes small, reducing the risk of bulk-discount pressure on values.
  • New-build purchases incur 10% IVA plus notary costs; budget roughly 11 to 12 percent on top of the asking price.
  • Off-plan buyers must verify a first-demand bank guarantee and check that units fall outside the Ley de Costas protected zone.

The market in numbers

Property mix · 5 projects
Townhouses 2Apartments 2Penthouses 1
veritySpain score vs Costa Blanca average
Torre de la Horadada
7.8
Costa Blanca average
7.4

New-build projects in Torre de la Horadada

View all
torre de la horadadacosta blancanew buildinvestmentalicante

Frequently asked questions

What is the average property price in Torre de la Horadada?

New-build prices in Torre de la Horadada currently range from €246,000 to €589,000 according to veritySpain project data. Entry-level units are typically compact two-bedroom apartments, while higher prices reflect larger three-bedroom properties with better specifications. This range is broadly in line with neighbouring Pilar de la Horadada but below premium Costa Blanca resorts such as Moraira.

Is Torre de la Horadada a good place to invest in property?

veritySpain rates Torre de la Horadada at 7.8 out of 10 across the 7 projects currently tracked. Limited buildable land keeps supply constrained, which supports price stability. A year-round resident population provides a broader rental base than purely seasonal resorts. Investors should still conduct full legal and financial due diligence before committing to any specific project.

What taxes apply to buying a new-build property in Torre de la Horadada?

New-build residential properties in Spain attract IVA at 10% of the purchase price. Additional costs include notary fees, land registry fees, and legal fees. Total purchase costs typically amount to 11 to 12 percent above the agreed price. Resale properties are subject to ITP instead of IVA; in the Valencian Community, ITP is currently set at 10%.

How many new-build projects are available in Torre de la Horadada?

veritySpain currently tracks 7 new-build projects in Torre de la Horadada. That figure is modest compared with larger nearby municipalities such as Torrevieja or Orihuela Costa. The small pipeline reflects limited land availability along this stretch of coast and means buyers face a narrower shortlist than in higher-supply areas.

What are the rental prospects for property in Torre de la Horadada?

Torre de la Horadada attracts both Spanish domestic tourists and northern European visitors in summer, giving landlords two tenant pools. A permanent resident population reduces seasonal vacancy. Net rental performance depends on management fees, proximity to the beach, and property specification. Non-resident owners must file an annual non-resident income tax declaration in Spain regardless of whether the property is let.

How does Torre de la Horadada compare with Torrevieja for property investment?

Torrevieja offers a far larger supply pipeline and more established rental infrastructure, but that also means greater competition among landlords and more exposure to bulk discounting in large developments. Torre de la Horadada has fewer projects and tighter land supply, which can support price stability. Entry prices are broadly comparable, though Torrevieja has a wider range at both the lower and upper ends of the market.

What legal checks are needed when buying off-plan in Torre de la Horadada?

Spanish law requires developers to hold a first-demand bank guarantee covering all buyer stage payments beyond the reservation fee. Buyers should confirm this guarantee is in place before signing any off-plan contract. A lawyer should also verify that the property falls outside the protected coastal zone defined by the Ley de Costas, and that all building licences are current and properly issued by the local authority.

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