Are housing prices in Alicante on the rise or fall
Recent data from the leading real estate portals in Spain shed light on the Alicante housing market this week. The figures show a slight dip in price per square meter last October, a modest retreat after a broader period of gains that began last year. The question now is whether this pause will last or if sellers will push asking prices higher again as demand evolves.
The softer price trajectory may indicate that the two-month downward trend could continue, though it is tempered by a still tight supply. A shortage of available homes has continued to work against buyers, helping to sustain price levels even as transactions soften.
Idealista’s numbers show the average cost per square meter of occupied housing easing by 0.1 percent from September, landing at about 2,040 euros. On an annual basis, however, prices remain up by roughly 11.2 percent compared with October of the previous year, a signal that the market has not fully reversed its earlier surge.
Not all areas experienced the same pattern. In the city of Alicante, house prices ticked up by 1 percent in October to 1,859 euros per square meter, reflecting a 15.1 percent annual increase. Nearby Alcoy posted a 0.9 percent monthly rise and a 7.4 percent year-over-year gain, while Benidorm saw the metro price climb to 2,477 euros in October—up 1.3 percent for the month and up 12.4 percent from a year earlier. In Sant Joan, prices rose 4.8 percent month over month, with annual gains reaching 21.9 percent to 1,964 euros per square meter.
On the other hand, some large municipalities have seen a monthly decline. Orihuela reported a drop to 2,171 euros per square meter, even as prices remain about 6.5 percent higher than last year. Nearby Torrevieja also experienced a slight uptick to 1,803 euros, contributing to a 15.5 percent annual increase. Elche registered 1,268 euros per square meter in October, a small monthly dip of 0.2 percent but still an 11.9 percent annual rise. These shifts reflect a market that is correcting in pockets rather than uniformly across the province.
Idealista notes that October marked the first monthly decline in Alicante province housing prices since September 2021, signaling a notable turning point after sustained growth. Another portal’s data corroborates a broader cooling trend: October prices across the province fell by 1.1 percent, with the average price landing at 1,930 euros per square meter, while still showing a healthy year-over-year increase around 10.6 percent.
The rental market in Alicante has its own story. Real estate agents report a sharp tightening of rental supply following new legislation, with some estimates suggesting a 40 percent drop. Fotocasa, while noting the broader province-wide slowdown, still recorded a 1.3 percent October recovery for Alicante, keeping the annual rise at about 12.8 percent. Regional dynamics indicate that across the Valencian Community prices fell by roughly 0.5 percent in October, tempering the pace of annual gains to around 8.6 percent.
The post-pandemic recovery in the real estate market has cooled as financing costs rose. Interest rates climbed, and the influx of foreign buyers—who have accounted for a significant share of transactions in recent years—began to ease. The latest data from national statistics and transport authorities point to a softening trend through the spring and summer months, aligning with broader European signals. The ECB’s latest confirms Euribor sitting around 4.16 percent, a stark contrast to the negative territory seen at the end of 2021, illustrating how borrowing costs have reshaped demand for homes in the region.
In Alicante, it is clear that price movements are localized rather than uniform. While some cities experience meaningful annual gains and monthly increases, others show small monthly declines. The overall picture remains one of a market that is adjusting to higher financing costs, changing demand patterns, and a tighter rental landscape—all factors that investors, first-time buyers, and renters are watching closely.
Overall, data from Idealista and other major portals point to a cautious moment for Alicante’s housing market. The combination of modest price retreats in October, a stubborn year-over-year gain, and a constrained supply chain continues to shape outcomes for buyers, sellers, and renters alike. In the near term, observers expect continued price stabilization in several municipalities, with selective pockets of growth where demand remains robust and supply tight.[Idealista data], [Other portal insights], [Regional market reports].
Notes: The figures cited reflect metropolitan and provincial trends, with city-level variations. The rental market remains sensitive to regulatory changes and the shifting balance between supply and demand in popular coastal towns. Analysts emphasize watching interest-rate trajectories and cross-border buyer activity as key indicators for the months ahead.
Related posts:
Alicante Housing Prices: Record Rents and Sales Reflect Tight Supply Alicante Housing Market Update: October Trends, Prices, and Local Variations Spain Rent Trends: Price Shifts by City and Province in Spring 2024 Alicante Property Market Trends: Prices Rise Sharply Across the Province Alicante rents rise despite housing law impact: national and local trends Housing Prices and Rental Dynamics in 2023: Regional Variations and Financing Impacts Spanish Coastal Real Estate: Price Trends, Supply Shifts, and Regional Variations META_PLACEHOLDER Valencian Rental Trends and Tourism Growth: A Regional Housing Snapshot Alicante Valencia Castellón Rental Prices and Housing Law Effects (Idealista) Storage Rooms: Market Trends, Profitability, and Operators in Spain Alicante Real Estate 2023: Prices Rise Despite Rates, With Towns Showing Divergent Trends