Waiting on the latest shifts in the market, one thing is clear: interest rates and uncertainty are shaping decisions. While the economy dances between risks and opportunity, Alicante stands out with a housing market that is marking an exceptional year. The real estate scene here feels almost saturated with activity, a surprising level of momentum after a long lull.
According to the most recent statistics from INE released on a Wednesday in July, there were 4,199 homes sold nationwide in the past month, a 34% rise from the same month last year and the highest transaction volume since 2007 for this month. Cumulative sales through the year reached 28,649, up 48% from 2021 and representing eleven and a half years of growth.
Despite a nationwide upbeat mood in property, Alicante’s numbers are above the average, fueled by its popularity as a destination for residence and tourism, with strong foreign demand. As a result, home sales in Alicante rose at a rate three times faster than the country as a whole, with about 383,000 transactions recorded in the first seven months, up 15% year over year.
In line with recent years, the second-hand market continues to dominate, accounting for about 87% of transactions, while new builds make up the remaining 13% and tend to cluster in higher-priced segments and tourist areas.
Naturally, this surge in demand has fed through to foreign buyers as well. Data on the value of property per square meter, issued by the Ministry of Transport, Mobility and Urban Agenda, shows that the province finished the first half of the year at an average price of €1,400.90 per square meter, up 6.1% compared with the same period last year, even as a modest 0.7% quarterly drop occurred in the second quarter.
It is important to note that these figures reflect valuations from appraisers and differ from price assessments published by real estate portals, which tend to show higher increases of 8% to 9% because they reflect sellers’ expectations.
Across the market, new construction priced at about €1,818 per square meter shows an 8% gain, while second-hand homes average €1,389 per square meter, up 6% from last year. This divergence is often attributed to rising costs in materials and logistics that have persisted since the end of confinement, a trend the sector suggests may continue into the coming months.
In short, supply constraints and rising costs have driven a clear tilt toward new projects in some segments, even as demand for existing properties remains solid. Industry observers note that sales targets for the year remain ambitious, and developers are watching the market closely as economic uncertainty prompts cautious planning for the next fiscal year.
Tiny houses that are very expensive in Alicante
When it comes to new developments, observers see a cautious start to the year with sales targets set to be met across the board. While uncertainty about the economy weighs on some decisions, others see opportunities in anticipated price adjustments that could encourage buyers to move sooner rather than later. New price dynamics in this segment are a key talking point among developers and brokers alike.
Market insiders report a softening in the pace of consultations, yet the underlying demand remains. On one side, higher mortgage costs and a tougher economic outlook suggest fewer close deals in the near term. On the other side, expectations of further rate hikes may prompt some buyers to accelerate purchases to lock in rates.
Municipal snapshots show Alicante continuing to lead provincial pricing. Xàbia records the highest square-meter price at around €2,276, followed by Benidorm at €2,129, Calpe at €1,951, El Campello at €1,849, and Denia at €1,767. In Alicante city itself, the average appraised house price sits around €1,348, with new construction at €2,138 and second-hand homes at €1,329. Elche shows an average price of €1,006, with €1,551 for new flats and €996 for second-hand.