Forecasts for Alicante Real Estate: Prices, Inventory, and Economic Shifts
The latest indicators point to a potential slowdown in the economy paired with a rise in housing loans. This combination could restrain real estate market mobility but is unlikely to push housing prices downward in the near term, unlike the downturn seen during the 2008 housing bubble burst. Analysts at Euroval expect a moderate rebound over the next few years without a dramatic collapse. The Alicante appraisal team emphasizes that projections hinge on current market dynamics and overall economic performance, and shifts in policy or demand could alter the trajectory.
In the Spain-wide projection period of 2023–2025, led by Nacho Amirola and his team, it is estimated that the average home price in Alicante will rise by about 6.6% through 2025, with an annualized increase near 2.2% across the period. This suggests a continued, gradual price growth rather than sharp surges, supported by steady demand and a measured supply response.
During the same window, the price per square meter is projected to move from approximately 1,364 euros to around 1,454 euros when considering a mix of new and existing homes. This forecast reflects the current weight of both new construction and established housing stock in Alicante’s market mix.
Houses under construction in Finestrat illustrate a segment where activity remains visible, underscoring that forecasts incorporate ongoing development alongside existing inventory. The projection takes into account that market conditions and macroeconomic trends may evolve; for instance, a meaningful rise in incentives for new construction or a surge in demand for investment properties as a hedge against inflation could lift averages. Conversely, faster rises in interest rates, tighter credit conditions, or weaker employment growth could dampen transaction volumes and temper price gains.
In a broader comparison across Spain, Alicante is expected to slightly outpace the national average in price appreciation during the forecast horizon, with a cumulative national increase of about 5.8% by 2025. Conversely, Alicante’s own price revaluation is predicted to lag behind regional peers such as Valencia and Castellón, where increases are forecast at roughly 10.4% and 11.3%, respectively. This regional spread reflects differing demand dynamics, supply pipelines, and price baselines across communities.
Within absolute terms, Alicante remains the priciest among the Valencian autonomy communities. Current per-square-meter averages in Alicante stand higher than neighboring provinces, with Valencia and Castellón tracking below Alicante on a price-per-square-meter basis.
The outlook remains conditional on ongoing stability in macroeconomic conditions, credit conditions, and construction costs. Market watchers will be watching for shifts in affordability, housing supply pipelines, and investment demand that could alter the pace and magnitude of price movements in Alicante and the surrounding region. Marked citations accompany the forecast from Euroval, reflecting the methodology and market inputs that shape these projections (Euroval forecast).