Inflation and rising interest rates aren’t slowing the premium property market in Alicante. Sales in the luxury segment continue to post double digit gains even as other sectors cool. In this climate, marketing high-end homes starting at half a million to six hundred thousand euros has grown by about 15 percent this year, according to major industry bodies keeping close watch on the market in Alicante.
Most transactions in the premium space are mortgage free, with a small share financed and not as affected by rate increases as middle class buyers. This pattern suggests that 2023 is set to be a strong year for luxury property, with demand proving resilient amid economic headwinds (industry sources).
The shift in work culture after the pandemic means many people can live anywhere and run their business or team remotely. Why not choose a seaside climate and year round sun? This sentiment is echoed by Valentina Sileike, Alicante representative for Lucas Fox, whose latest Spain luxury market report confirms a healthy upswing in both transactions and prices across the country. The report highlights rising activity in the luxury sector and a broad momentum in pricing.
Data show the Costa Blanca accounts for nearly 7 percent of the super luxury market, with properties above 2.5 million euros. Malaga and the Balearic Islands still dominate roughly a third of nationwide supply, but Alicante is growing its share.
Price Trends
Experts from Costa Blanca Sotheby’s International Realty and Lucas Fox agree that Alicante holds substantial potential in the luxury segment. The price gap with other popular destinations remains favorable, offering a competitive edge for buyers chasing similar properties at a lower cost. A Sotheby’s representative notes that in many cases similar properties can be found for almost half the price elsewhere, underscoring Alicante’s value advantage.
Luxury Residence Values
Luxury residences in the area have become costlier, with values reaching around 6,875 euros per square meter. Local developers have increasingly focused premium projects on this segment, offering homes tailored to contemporary tastes and foreign buyers who often seek larger, brighter spaces with modern aesthetics. The preference leans toward homes with big windows, ample natural light, and generous outdoor areas, aligning with modern living standards that Spaniards and expatriates alike desire.
Among nationalities, German, Dutch and Belgian buyers are prominent, while buyers from the United States are growing, attracted by the Sotheby’s name and the confidence it signals for overseas purchases. This US demand aligns with a broader trend of international buyers seeking the Costa Blanca’s luxury offerings (market commentary).
Historically, the northern coast has been the core market, but Vega Baja has recently attracted attention from high-end buyers. As travel restrictions eased, German buyers increased their presence, often seeking properties that appeal to a more permanent outdoor lifestyle. Regions such as Punta Prima, Campoamor and Cabo Roig benefited from this shift, according to Santiago Sánchez with Engel & Völkers in Torrevieja.
Younger Buyers and New Demands
The demographic trend shows more buyers under fifty entering the market. While retirees once dominated transactions, a growing cohort of active professionals is exploring second homes in the area. The price gap with the Balearic Islands remains a key factor driving the interest of these newer buyers.
In terms of housing type, detached homes with pools and large plots that offer privacy remain popular. In some cases beachfront locations drive the bets toward penthouse arrangements. As Ciudad de la Luz seeks to attract major productions and boost digital industry, the luxury segment could receive further momentum. The region’s air connectivity, especially El Altet airport, continues to be a critical factor for European buyers seeking convenient access to luxury properties.
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