Prices for used homes in Alicante began the year amid a notable acceleration. A tight supply combined with higher borrowing costs pushed annual gains to 15.4%, ranking the province fourth in Spain for price levels at 1,817 euros per square metre. This surge marks the strongest uptick since the start of the recent real estate downturn, underscoring a market that remains sharply focused on limited inventory and rising financing costs.
Fotocasa, one of Spain’s leading real estate portals, issued this assessment in its February report on second-hand housing in the country. Across Spain, the annual price increase stood at 9.9% with an average of 2,086 euros per square metre, while Alicante’s year-over-year rise was about five and a half percentage points higher, illustrating the province’s outperformance within the national landscape.
In context, only three regions posted more pronounced increases. The Balearic Islands led with a 20.2% rise to 3,466 euros per square metre, followed by Santa Cruz de Tenerife at 19.1% and 2,150 euros, and Navarra at 17.5% and 1,914 euros. The smallest gains appeared in Albacete at 1.6% to 1,355 euros, Ciudad Real at 1.5% to 974 euros, and Asturias at 1.2% to 1,602 euros. Alicante ranked twelfth among the priciest regions, placing the Balearic Islands, Madrid, Gipuzkoa, Barcelona, Bizkaia, and other high-cost areas ahead of it, with 3,466 euros per square metre noted in the Balearics and Madrid clearly above the rest of the list, followed by Basque Country and other sizable urban markets.
The Alicante price climb also exceeded the Community of Valencia’s regional average, which shows an 11.1% rise, lifting the average to 2,008 euros. In Castellón, the average price reached 1,203 euros with a 7.1% increase, while Valencia itself saw a 6.9% rise to 1,532 euros per square metre.
Looking at municipalities, the sharpest gains within the province and the Valencia Community were in Pilar de la Horadada, up 59.4%; El Verger, up 47%; Rojales and Finestrat, each up 41.7%; Pedreguer with 39%; and Calp at 36.4%. Among the most expensive towns, Calp led the regional ranking at 3,293 euros per square metre, followed by l’Alfàs del Pi at 3,021 euros.
Within the provincial capitals, Alicante recorded the strongest increase at 18.3%, bringing the average to 2,012 euros per square metre. Castellón saw a 7.9% rise to 1,320 euros, while Valencia increased by 0.9% to 2,354 euros.
How much do house prices have to fall to offset higher mortgage costs?
The national picture shows the largest price acceleration in 17 years. This surge returns price levels to those seen in 2006 before the housing bubble cooled, driven by monetary policy shifts as the European Central Bank raised rates. The result has been renewed demand and continued upward pressure on prices amid tighter supply. Fotocasa notes that these gains are likely temporary, given the mortgage rate trajectory tied to Euribor. The organization’s analyst team, led by María Matos, Head of Studies, suggests that a moderation in price growth should occur as mortgage costs stabilize and purchasing power normalizes, potentially guiding the market back toward a steadier path.