Since the post-pandemic health situation began to normalize last summer, Alicante province saw a strong surge in home sales despite rising financing costs. The Euribor increase during those months did not deter market momentum. Between July and September, transactions reached a high level, signaling a market restrained only by financing costs. Data from the Ministry of Transport, Mobility and Urban Agenda show 14,540 deals in the region, a 22.4% rise compared with the same period a year earlier and well above the national average growth of 3.8%.
Highest trading volume for this time of year since 2006 is evident. At the height of the market, 17,223 homes were sold during the summer as typical summer activity faded around notary holidays, yet the figures remained robust, slightly below the second quarter total of 16,243.
With this new data, nine-month sales in Alicante reached 44,134 homes, up 38.7% from the same period in 2021. This demonstrates sustained demand and a resilient market despite the interest rate environment.
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Foreign demand is a significant factor in these trends. The international market volatility in the third quarter drove a large share of activity, with around 7,700 sales representing 53% of all transactions in the province. Non-residents accounted for 5,441 of these operations, primarily for second homes or pure investments.
Costa Blanca continues to attract non-resident buyers, accounting for about a third of national foreign purchases, far ahead of regions like the Costa del Sol or the Balearic Islands, where several thousand such deals occurred in the same period.
This notable international buyer activity contributes to market growth even as interest rates rise, since many of these buyers do not require local financing.
The influx from other provinces remains significant. In the third quarter, buyers from Madrid and nearby regions added 1,894 transactions, while growth in this segment has softened compared with previous years due to ongoing mobility restrictions and broader market conditions.
Municipalities
By population distribution, two consecutive quarters show Torrevieja surpassing Alicante city as the province’s largest real estate market, reflecting domestic demand’s sensitivity to interest rates. Salinas saw 2,030 summer sales, up 52% from 2021, underscoring a strong domestic component. Orihuela posted 1,284 deals, up 15.5% year over year, followed by Elche with 850 transactions and a 5% increase; Santa Pola recorded 699 units, up 61.4%; and Benidorm rose 52% with 627 homes sold.
Regarding property type, the market remains heavily weighted toward secondary homes, with 12,856 sales in the period, a 26.3% year-over-year rise. New construction accounted for only 12% of the total, equating to 1,336 units and a modest 5% decline. The lack of supply rather than decreased demand explains the slower new-build performance. In several developments, even previously pricey or poorly oriented units were sold out, leaving few properties available on the market.
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Forecasts for the year’s end suggest continued demand, though some buyers are adjusting expectations. Industry professionals report solid interest in purchases, but some shoppers are slowing operations as Euribor-driven mortgage costs rise. This shift leads many buyers to consider cheaper apartments or postpone purchases as income or loan terms tighten.