HE housing prices start the year with strong momentum in Alicante. Far from cooling due to rising interest rates, demand from abroad helped push the price per square meter up at a rapid pace, perhaps the fastest since the housing bubble burst over a decade ago.
This trend is reflected in data from the country’s two leading real estate portals, Idealista and Fotocasa, with the province appearing as a hotspot where demand keeps pushing prices higher. On an annual basis, January data show a similar pattern across the boards.
Idealista reports a 1.1% month-over-month increase in the square meter price, translating to an annual rise of at least 14%. That rise outpaces general inflation and places Alicante as one of the strongest performers nationwide, second only to Malaga, where prices have jumped even more.
Fotocasa reports an even larger leap, suggesting prices climbed by as much as 15.9% year over year. According to their data, Alicante is among the provinces with the sharpest gains, with only the Balearic Islands recording higher increases at the start of 2022.
Analyses based on municipalities show notable gains in many smaller towns within Vega Baja, which attract a substantial foreign audience. Algorfa, for instance, shows a remarkable price increase of 41% according to Idealista; Formentera del Segura records 38.8%; towns such as Pains register 38.7%; and Benijófar exceeds 31%, all cited by the same sources.
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Even in the province’s larger markets, the increases remain pronounced. In Alicante city, the average price per square meter rose by about 14%; in Torrevieja, prices grew by 16.1%; and Orihuela saw an annual rise of 18.5%.
In Villajoyosa, homes are roughly 21.1% more expensive than January 2022; in Calpe prices have risen about 20%; and Denia shows a 16.6% increase. Elche’s growth is steadier, with a 8.1% higher price level than a year ago, still above the general inflation rate.
On the other hand, some towns have seen price declines, including Monóvar (-1.6%), Hand (-1.6%), Crevillent (-3.6%), Aspe (-4%), Cocentaina (-5.5%), or Alcoy (-6%), according to Idealista data. In all these cases, local market conditions reflect softer demand or supply dynamics.
The portals attribute the broad price surge to stronger foreign demand, especially buyers with higher purchasing power who often do not require financing and may be less affected by Euribor shifts and ECB policy changes, according to Maria Matos, director of Fotocasa Studies. Alicante is reported to be among the top three areas of interest for many nationalities looking to purchase in Spain.
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An analysis supported by Idealista’s Francisco Inareta notes that throughout 2023 the Euribor dynamics may cool the pace of price growth in the province, yet demand is likely to stay strong in Alicante, where financing is not always a prerequisite for buying. Prices are expected to keep moving upward as buyers remain active and supply remains tight.