The real estate market has undergone a major shift as pandemic restrictions eased, influencing demand for second-hand homes and pushing prices higher when supply cannot keep up. In Alicante, this trend is pronounced, with annual price growth reaching 9.3 percent at the start of the year, second only to Malaga in Spain. The current average price sits around 1,670 euros per square meter for existing homes, while newly built properties hover near 2,079 euros per square meter, prompting buyers to weigh which option best fits their needs. Among municipalities, Marina Alta, Pedreguer, Teulada, and Calp posted the strongest increases.
Last year brought robust activity in the housing market as many families looked for larger homes following lockdowns, while demand soared and stock declined. Fotocasa Operations Director María Matos noted that this surge in demand coincided with shrinking supply, contributing to a sustained price rise over 21 months in the second-hand market.
Domestic data from this property index show Spain-wide inter-annual growth of 3.5 percent in July, with some regions exceeding that rate. Alicante province is a clear example, with growth outperforming the national average. Malaga remains ahead with a 10.7 percent rise and prices around 2,648 euros per square meter.
Even as Alicante leads the increases, it does not top the country in average price. Across Spain, fourteen provinces have higher averages. Madrid is the priciest region at about 3,320 euros per square meter; Guipúzcoa follows at 3,192; the Balearic Islands at 3,094; and Barcelona at 3,003. In the Valencian Community, overall price growth has been strongest. In Castellón, prices rose 3.2 percent to 1,140 euros per square meter, while Valencia saw a smaller uptick, leaving it around 1,450 euros per square meter.
Within Alicante, Pedreguer leads with a striking 53.4 percent annual increase and an average price of 1,706 euros per square meter. Teulada rose 27 percent to 2,178 euros; Calp climbed 24.2 percent to 2,878 euros. Pilar de la Horadada stood at 23.3 percent with an average of 1,883 euros, and El Verger reported 21.5 percent with 1,243 euros. In the city of Alicante, prices rose 13.5 percent to an average of 1,836 euros per square meter. The pattern shows a broad acceleration across the province, not just in the coastlines.
The gradual price uptick has narrowed the gap between second-hand and new-home prices. Current figures place new builds at about 2,079 euros per square meter, a sign that buyers are weighing the cost differences carefully and still considering newly built options as a viable alternative.
Housing prices in the province rise faster than wages
Marifé Esteso, president of the Alicante Association of Realtors, cautions that official statistics may not capture the full market picture yet acknowledges a pricing rise. He explains that demand built up during the worst days of Covid and began pushing prices higher. Ongoing adjustments in interest rates and the return to school amid rising inflation are shaping the market dynamics for now.
Jesualdo Ros, president of the Association of Real Estate Developers of the Province of Alicante (Provia), highlights that limited supply is driving prices up. He emphasizes that foreign buyers contribute to the pressure on prices in the region, reinforcing the perception of a tight market.
Preferred destination for a second home
A Pisos.com survey, published by the Spanish Mortgage Association, shows Alicante as the country’s top choice for a second home. The coast remains more sought after than inland areas. The leading provinces for a second residence are Alicante at 8.8 percent, followed by Malaga at 8.5 percent and Valencia at 7.3 percent.
When considering foreign buyers, the latest first-quarter data from the College of Registrars indicate that foreigners accounted for 13.17 percent of total home sales nationally, a return to pre-pandemic levels. Within this context, Alicante again ranks highly, with foreign purchases representing around 40.7 percent, Mallorca at 35.37 percent, and Malaga at 33.7 percent, underscoring the region’s attractiveness to international buyers.
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