Rising borrowing costs and inflation did not slow the Alicante housing market. Across the province, price momentum persisted through April, supported by the leading real estate portals and the confidence of homeowners. Banks report ongoing demand for financing, while sellers remain confident they can move properties even as subtle signs of a slowdown begin to appear in other markets.
Currently, the market shows no signs of fatigue. The monthly index from Idealista registered a 1.4% increase in the latest reading, pushing the annual rise to 11.3% and marking the second-highest annual figure in the portal’s series since 2007. The average price per square meter in Alicante sits near €1,935, edging toward the February 2006 peak of €2,184 per square meter according to the same source.
Second-hand homes demonstrate even stronger momentum. The province’s average price per square meter stands around €1,847, up 1.6% from the previous month and up 15.6% year over year. Alicante ranks among the top four cities for price acceleration, trailing only the Balearic Islands, Tenerife, and Navarre in annual gains.
Panoramic view of Alicante city. PILAR CORTES
Despite cautious headlines, sales activity remains less visible than price movements because transactions reflect listing asking prices and sometimes optimistic valuations. Overall development remains buoyant. INE property transfer statistics show 8,859 houses sold in Alicante during January and February, a 14.17% increase versus the same period last year. Year-over-year sales growth has reached roughly 48%, a pace that resembles market activity before the recent downturn more closely than the 2019 pre-pandemic period. (Data and market summaries.)
Francisco Inareta, spokesperson for Idealista, notes that a portion of demand comes from buyers who do not rely on financing, insulating them from rising interest rates. A sizable share of activity also comes from international buyers seeking a second home. Another significant segment consists of buyers who already own one property and will require relatively modest financing for a second purchase.
Two teenagers are looking at apartment offers in Benidorm. david revenge
Inareta adds that banks’ outstanding balances are easing, intensifying competition among lenders. Some institutions are offering financing with lower-than-expected interest rates, depending on the client profile. (Market notes from Idealista.)
Municipal data show the largest annual price increases in several towns. Benijófar led with around a 24.5% rise, followed by Sant Joan d’Alacant at 21.9%, Catral at 19.3%, Callosa de Segura at 18.7%, and Alfés at 18.5%. In the larger cities, Alicante itself saw an annual gain of about 17.8%. Elche posted a more moderate 9.5% rise, while Benidorm reached roughly 8.4%. Conversely, a few municipalities posted price declines, with Hondón de las Nieves down about 20%, Benferri down 10.8%, and Villena, the province’s most populated municipality, down around 4%. (Municipal price data compiled from regional portals.)