Economy growth may slow and housing loans could rise, a combination that would temper the real estate market’s momentum but is unlikely to push prices down as sharply as during the 2008 housing bubble burst. That view comes from Alicante appraisal estimates, with Euroval forecasting a continued, moderate rebound in market activity in the coming years.
In the report Projection of house prices in Spain 2023-2025, led by Nacho Amirola, the average price in Alicante is projected to rise by 6.6% by the end of 2025, with an annual average increase of 2.2%.
During this period, the average price per square meter is expected to be around 1,364 euros, rising to about 1,454 euros when both new and existing homes are considered, with the latter currently carrying the heavier weight in the market.
However, the appraiser notes that these figures are projections based on current market conditions and economic trends, and could shift if key factors change. A significant rise in incentives for new construction, driven by higher costs for newly built homes, could lift the average price. Likewise, greater demand for investment properties as a hedge against inflation could push prices up further.
Conversely, faster-than-expected increases in interest rates, tighter credit conditions or weaker employment growth could dampen sales and put downward pressure on housing prices.
Ignacio Amirola, new CEO of valuation expert Euroval
Compared with national and regional trends, Alicante is expected to outpace the country in price growth over the forecast period, while cross-country data suggest a total national price increase of about 5.8% by 2025. At the same time, Alicante’s rate of revaluation in the average house price would lag behind Valencia and Castellón, where increases of 10.4% and 11.3% are anticipated for the same timeframe, according to Euroval’s forecast.
In absolute terms, Alicante still holds the highest average prices among the autonomous communities. The current figures show Valencia at about 1,191 euros per square meter, Castellón at around 1,058 euros, while Alicante stands higher at roughly 1,312 euros per square meter.