Property guides to the Costa Blanca plus tips on where to buy property in this area of Spain.

The Costa Blanca, with its wonderful beaches and historic towns, runs for 200km along the south-east cost of Spain.

Beginning in the north with the towns of Denia and Javea and ending in the south at Guardamar and Torrevieja, the area has long attracted tourists, especially those from the UK and Germany.

In fact, the region's name, Costa Blanca, was originally coined by British European Airways when it launched its air service (for £38.16s -) between London and Valencia in 1957.

To find property on the Costa Blanca and more Spanish property, visit: www.justoverseas.co.uk/propertyinspain

Since then, the region has grown to become one of the most popular holiday spots in Spain, with around two million Brits visiting every year. As well as the tourist hotspots of Benidorm and Alicante, with their golf courses, sandy beaches and amusement parks, the region offers a host of smaller and more laid-back destinations.

One of these, Villajoyosa, is famed for its old town and its chocolate. It also boasts a superb Gothic Catholic church, with a Baroque altar piece. Elsewhere in the Costa Blanca, the bays of Altea and Calpe retain their unspoilt charm.

Like the slightly more famous Costa Del Sol, the Costa Blanca is home to some superb golf courses, including several near Alicante. As the capital of the region, the city also features a spectacular castle called the Castillo de Santa Barbara.

Pros of Buying Property on the Costa Blanca

In recent years, Alicante has been one of the fastest-growing cities in Spain, and its airport has superb links with the UK. Airlines which use the hub include bmi, easyJet, British Airways, Flyglobespan and Ryanair.

Over the last decade house prices in Spain in general and the Costa Blanca in particular have increased significantly.

A study by RBS indicated that prices in the country as a whole increased by an average of 11 per cent every year between 1996 and 2006. Towards the end of 2003, house price inflation peaked at 19 per cent.

Figures from kyero.com suggest that prices in the Alicante region are typical when compared to Spain as a whole. In fact, a home in the Costa Blanca region cost 247,000 euros in the third quarter of 2007.

Other data from the Spanish government seems to show that prices in the region did continue to increase in the previous quarter of 2007. They indicate that property in the Alicante area costs 1,737.4 euros per square meter and that this is an increase of 2.1 per cent on the previous quarter.

With plenty of English company, beautiful beaches, potential rental income from other holidaymakers and previously strong house capital appreciation, it is not hard to see why so many people have been tempted to invest in the Costa Blanca.

Cons of Buying Property on the Costa Blanca

However, recent reports have suggested that there are disadvantages to investing in the region. The Spanish property market is not expected to perform particularly well over the coming few years. Prices have risen at a faster rate in Spain than in any other European nation over the last few years, doubling in many parts of the country. As a result, property hotspots like the Costa Blanca have become very over-developed in parts - and this surplus in supply is expected to result in an overall market slowdown.

In fact, the government figures seem to show that the Costa Blanca has been particularly affected by the downturn in prices. Its house price inflation of 2.1 per cent was the lowest of any region in the country in the third quarter of the year.

The website spanishpropertyinsight.com reported: "Traditional destinations such as Malaga and Alicante have fallen to the bottom of the table. This is a reversal of the situation in 2003, when Malaga and Alicante were two of the strongest regions, with price increases of over 20 per cent.

"High prices and over development in traditional areas have pushed buyers to new regions."

However, some reports are now suggesting that this slump represents an excellent opportunity for people to consider investing in the region again. In particular, more expensive properties in less developed areas of the Costa Blanca are expected to hold their value in the coming years.

What You Need to Buy Property in Spain

Anyone buying a property in Spain requires a NIE number - a unique taxation identification number needed before you can buy a property or open a bank account.

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Spanish Property Guides by Region:

Buying Property in Spain: Costa Brava Property Guide

Buying Property in Spain: Costa Blanca Property Guide

Buying Property in Spain: Mallorca Property Guide

Buying Property in Spain: Ibiza Property Guide

Property in Spain: Costa Del Sol Property Guide

Buying Property in Spain: Barcelona Property Guide

Property in Spain: Buying Property in Madrid