A growing wave of international buyers appeared after pandemic restrictions eased, with Alicante leading Spain in the year just finished. Purchases surged near the peak levels seen during the housing boom, even as demand cooled as mortgage rates rose in the latter part of the year.
Latest figures from the School of Real Estate Studies show that Alicante closed 2022 with significant activity: 49,977 transactions, up 37.9% from the previous year, and a total of 646,241 deals nationwide—the largest increase across Spain and 14.5% higher than 2021. The province stood out with double‑digit gains in nearby markets, notably with Palm being up 32.2%, Avila 30.6%, Santa Cruz de Tenerife 27.5%, and Malaga 25.5%. Outside Castile, most regions maintained strong residential tourism demand driven by foreign buyers.
With that level of activity, Alicante also ranked third in total sales volume, trailing only Madrid and Barcelona—cities with much larger populations. Madrid sold 83,388 homes last year, up 3.9%, while Barcelona reached 66,537 transactions, up 15.1% annually.
Remarkably, the year set a record for total homes sold in a single year since 2007, surpassing 52,816 operations at the peak of the pre‑crash period when the market was cooling.
Buying or renting a house? This is the Alicante situation
However, the growth pace slowed in the last quarter, with 12,299 transactions in the final period, rising 21.2% from the previous year but showing just a 3.2% increase in December alone.
An exceptional year
Industry observers described 2022 as exceptional. The Provincial Supporters Association noted a mix of drivers that produced these figures, including a flood of buyers from abroad following pandemic restrictions and the war in Europe. Eastern European buyers, including Ukrainian families seeking shelter on the Costa Blanca, played a notable role.
In addition, strong local demand contributed to rising savings accumulated during the pandemic and accelerated by higher interest rates, which pushed many buyers to move forward with purchases for fear of restricted access to financing later on. As a result, many developers found themselves nearly out of stock for newly built housing in Alicante.
On the supply front, the market remained tight. New construction accounted for a minority of activity, totaling 6,129 transactions, up 11.4%, while the dominant segment remained second‑hand housing with 43,848 transactions, up 42.6%.
How much does it cost to rent a home in Alicante?
Prices and market structure show a trend toward normalization in 2023, with the total market stabilizing at a pace seen as more sustainable over time. The managing director of Marsol Internacional, Pedro Menarguez, cautions that large price drops are unlikely except in select areas where supply was significantly reduced. Many developers paused projects awaiting lower construction costs.
Single‑family homes continued to be a notable trend, accounting for roughly one fifth of all transactions in the Valencian Community. Chalets and bungalows therefore represent about 22.11% of deals, three percentage points above the national average. Notably, 56.25% of homes notarized last year exceeded 80 square meters, compared with 50.7% nationwide. The average price per square meter in the region rose to 1,608 euros, an increase of 5.8% from 2021.