The Alicante housing market faces continued red figures as October marks a new setback in sales. Data from the National Institute of Statistics show a fresh decline in transactions, with mortgage costs rising and limiting access to financing for buyers with tighter budgets. The result is a cooling effect on overall market activity and a pause in many purchase decisions.
October closed with 3,795 operations, an 11% drop from the same month a year earlier. This decrease is slightly less severe than the 17.5% drop recorded in September, signaling a shift in momentum. The ongoing trend suggests that while the market had remained buoyant across Spain since the start of the year, Alicante’s dependence on international buyers has meant a slower domestic turnaround. In other words, foreign demand has cushioned part of the slowdown, but the broader decline persisted.
Across Spain, the resale market mirrored the national cooling, with real estate transactions falling by 11.1% in October. INE data from the Property Register indicates a total of 45,903 deals completed nationwide. This aligns with the regional picture in Alicante and underscores a marketwide adjustment after a strong early year. (Source: INE)
The recent contraction has essentially absorbed the previous gains seen in the market this year. In Alicante, the total number of homes sold from January through October stood at 42,320 — that is 130 fewer transactions than in the same period in 2022. The trend points toward a negative territory after months of improvement, highlighting how the economic slowdown, higher financing costs, and shifting purchaser sentiment have shaped demand. (Source: INE)
Second hand
The real estate slowdown hit the second hand segment hardest, as usual. This part of the market remains the most affordable and thus most sensitive to lending costs. In October, 3,259 second-hand homes were sold, a 12% decline from the previous year. The pullback here reflects tighter credit conditions and buyers with tighter budgets adjusting their plans. (Source: INE)
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In contrast, sales of newly built homes fell more modestly, by 3.4%. This resilience is partly explained by limited supply, with virtually all ongoing construction still selling as fast as it comes on the market. In October, 536 new homes were sold. Many of these are off-plan purchases placed more than a year ago, before the economic slowdown intensified. (Source: INE)
Industry observers note that even with the year over year decline, 2023 is expected to end with a substantial level of home sales. This could position the year as the second strongest for the sector since the housing bubble burst. Market trackers such as Idealista and Fotocasa anticipate a stabilization once the current comparative lull against 2022 dissipates, which many view as an exceptional year rather than a normal baseline. (Source: Idealista; Fotocasa)