Historical prices keep making headlines in Alicante’s housing market. The latest data show that second-hand flats averaging 100 square meters typically fetch around 205,500 euros, while rentals for that same size hover near 1,080 euros per month. A recent report from the Idealista portal highlights that Alicante is posting record-breaking prices in both sale and rental sectors, with industry professionals pointing to constrained supply as the main driver behind the surge.
Idealista’s year-end assessment finds a notable jump in prices for existing homes in the province. Prices rose about 11% year over year, with an average price per square meter of 2,055 euros. This marked the strongest level since the 2006 real estate bubble when the square meter price peaked at 2,184 euros.
In the regional comparison, Alicante ranked as the fifth strongest growth market, trailing Tenerife, Soria, and Malaga in price gains. Other markets still surpass Alicante in absolute price per square meter, including the Balearic Islands at 4,083 euros, Guipúzcoa at 3,505, Madrid at 3,208, Malaga at 3,079, Vizcaya at 2,758, and Barcelona at 2,638. On the lower end, Ciudad Real sits around 745 euros, followed by Jaén at 830 and Cuenca at 852 per square meter.
Regarding rents, Alicante reached a historic maximum with a 16% year-on-year increase, pushing the average price to 10.8 euros per square meter. The region was among the top five for rent growth, behind Segovia with 21.8%, the Balearic Islands with 18.3%, Tenerife with 17.7%, and Valencia with 16.8%. Among major cities, Barcelona leads in rent, with 17.5 euros per square meter, followed by Madrid at 16.2, the Balearic Islands at 16.1, and Guipúzcoa at 15.2. The most affordable province for rental prices remains Jaén, at about 5.5 euros per square meter, with Zamora at 5.8, Cáceres at 5.9, and Ciudad Real around 6.0.
Idealista’s analysis also examined capital cities nationwide. Alicante, Cádiz, Madrid, and Málaga currently show record figures for both sale and rental prices, underscoring how demand remains robust in the Spanish market.
In the first part of the report, the average price per square meter in Alicante rose 17.5 percent last year to 1,915 euros, with Cádiz at 2,786; Madrid at 4,118; and Málaga at 2,668. For rentals in Alicante, the rate rose 16% to 10.8 euros per square meter, with Cádiz at 11, Madrid at 17.9, and Málaga at 13.6. The report notes that five of ten Alicante districts posted maximum prices for used housing, making the city one of the most expensive in its capital region. The top area was Playa de San Juan-Cabo de Huertas at 2,738 euros per square meter, followed by the Center at 2,597 and Parque Avenidas-Vistahermosa at 2,176. Completing the top five were San Blas-Pau at 1,796 and Pla del Bon Repós-La Goleta-San Antón at 1,706.
For rents, Playa de San Juan-Cabo de Huertas also tops the chart at 12.3 euros per square meter per month, followed by Central at 11.2 and Pla del Bon Repós-La Goleta-San Antón at 10.9.
Nearby, an image caption notes that apartments near Explanada are among Alicante’s priciest areas. The cityscape and the sea breeze blend into the market narrative, where price pressures reflect a sustained demand pattern.
Turning to other municipalities in the Alicante province, Moraira remains the priciest for second-hand homes with an average around 3,668 euros per square meter. Benissa follows at 3,050, and Benitachell at 3,043. In Benidorm, prices sit at 2,532 per square meter, with Orihuela at 2,177 and Elche at 1,259. In contrast, Alcoy sits lower at 845. In the rental segment, El Campello leads at about 11.3 euros per square meter per month, with Calpe near 11 and Altea at 10.2.
Experts point to several reasons behind the rapid price ascent. Pedro Casamayor of a local Alicante real estate agency attributes the rise primarily to limited supply. He notes that sales fell by about 30 percent in the past year, explaining that the years 2021 and 2022 were exceptionally strong for sales, which reduced the influx of new listings. He also cites the Ukraine conflict as a factor drawing people to settle in the region, including buyers from nearby areas.
Casamayor also mentions that demand factors extend to the rental market, where tourist accommodations compete with long-term rentals, often offering more attractive rates. He adds that new housing legislation with price controls has discouraged some homeowners from listing properties.
Idealista’s spokesperson, Francisco Iñareta, describes 2023 as challenging for buyers and renters. He emphasizes persistent high demand coupled with persistently tight supply as the core drivers pushing prices higher, even in the face of higher borrowing costs.
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