Foreign buyers began flooding Alicante after pandemic restrictions lifted, making the city the top performer across Spain last year. Activity reached levels close to those seen during the housing bubble, even as demand cooled somewhat in the latter half of the year due to higher interest rates.
Latest data from the School of Student Affairs show 2022 closed with 49,977 transactions in the province, up 37.9% and totaling 646,241 nationwide, the strongest increase in the country and a 14.5% rise from the year before in overall activity.
Only Palma registered a larger increase at 32.2%, followed by Avila at 30.6%, Tenerife Santa Cruz at 27.5%, and Malaga at 25.5%. Almost every other region also maintained a strong residential tourism component driven by solid foreign demand.
With these figures, the province ranked third in total home sales, trailing Madrid and Barcelona, which had the highest populations. Madrid sold 83,388 residences, up 3.9%, while Barcelona reached 66,537 transactions, rising 15.1% year over year.
These numbers also marked the highest annual housing volume recorded since 2007, when 52,816 transactions were filed as the real estate bubble was winding down.
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Nevertheless, the growth rate slowed in the final quarter, with 12,299 sales, up 21.2% versus the prior year and a modest 3.2% increase in December as momentum cooled.
exceptional year
From an industry vantage point, 2022 was described as exceptional. The Provincial Supporters Association, represented by Jesus Ros, highlighted a mix of factors that produced these results. A key element was sustained interest from foreign buyers during the pandemic years, aided by global events that pushed more Eastern buyers, including families from Ukraine, to seek housing on the Costa Blanca.
Additionally, strong local demand and savings accumulated during lockdowns fed the market. Rising interest rates did push some buyers to act quickly for fear of future financing challenges, helping to accelerate purchases across the province.
Analysts note that many developers had nearly exhausted newly built inventories in Alicante, underscoring tight supply conditions as the year progressed.
On top of that, robust local demand supported by savings from the pandemic period kept momentum high, even as interest rates climbed. This combination spurred many buyers to finalize purchases sooner rather than later.
In response, several contractors paused new projects while waiting for construction costs to ease, further tightening new housing availability in the province.
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New construction remains a smaller slice of the market, totaling 6,129 transactions, up 11.4% from the prior period. The bulk of activity continues to come from second-hand housing, which reached 43,848 transactions and grew 42.6% year over year.
Price ranges
With these figures, industry observers forecast a normalization in 2023, aiming for a steadier trading pace. The managing director of Marsol Internacional, Pedro Menárguez, suggested that price declines are unlikely except in select areas where supply remains tight. He noted many developers paused projects while awaiting lower construction costs.
Single-family homes continued to account for about one in five transactions, a trend that has persisted since the onset of the pandemic. Chalets and bungalows now make up roughly 22.11% of all registered deals in the Valencian Community, three percentage points above the national average. The typical size of sold homes also grew, with 56.25% of notarized properties exceeding 80 square meters, compared with 50.7% nationwide. The average price per square meter in the region reached 1,608 euros, up 5.8% from 2021.