The housing market has not lifted foot traffic or fuelled a sudden surge in demand despite inflation and higher interest rates. While buyers feel the pinch, sellers continue to list properties at elevated asking prices, and bidding remains competitive before any potential slowdown takes hold. High trading activity continues to buoy prices, especially along coastal areas where demand remains robust.
Prices edged higher by about 0.7 percent in August, with year over year gains running in the double digits according to Idealista data. Over nine months, the year-on-year increase has held strong, reflecting a market that is gradually adjusting rather than collapsing.
In absolute terms, the average price per square meter in the region sits around 2,200 euros, suggesting a typical 80 square meter home costs about 176,000 euros. Even with recent adjustments, the market remains several percent below its February 2006 peak, when prices briefly exceeded 2,184 euros per square meter. Yet many coastal towns have already surpassed earlier records, underscoring persistent demand in prime locations.
A coastal cityscape near Alicante illustrates the dynamic market.
These are bid prices by nature, implying a tendency for prices to rise as the number of interested buyers increases and owners hold firm on asking points. Even when negotiations commence later, the overall market pace may reflect a slower decline only after a longer period of time.
Foreign buyers helped cushion Alicante from broader market declines
In this cycle, several municipalities posted notable price increases. Snow Gap led with a substantial rise in average listing values, followed by Daya Nueva, Els Poblets, Rojales, and Benidoleig. The per-square-meter rate in these towns shifted upward as demand from international buyers kept pressure on prices in the region. In Alicante proper and nearby towns, the average price per square meter also climbed in multiple municipalities, while some markets saw softer movement over the year.
Among larger populations, the per-square-meter average advanced in places like Alicante, Elche, Benidorm, Orihuela, Torrevieja, and Alcoy, with gains ranging from roughly 8 to 16 percent depending on the city. Conversely, a handful of municipalities registered small declines. Sax, Redován, Aigües, Calpe, and others posted modest year-on-year decreases, illustrating a market with varied momentum depending on local factors.
These shifts reflect a broader pattern where regional dynamics, international interest, and local supply all shape price trajectories. While some towns endure price softening, others see sustained momentum driven by desirable locations and the presence of foreign buyers looking for vacation homes or rental investments.
Residential construction activity in Alicante has surged, delivering the strongest data in years and signaling a renewed confidence in development pipelines. This acceleration coincides with rising demand, particularly in coastal districts where new housing stock aims to balance supply with high buyer interest.
The most expensive and the most affordable markets
Within the province, certain districts stand out for premium pricing. Moraira leads with the highest average price per square meter for properties on the market, followed by Benissa, Benitatxell, and Javea. These areas attract strong foreign buyer demand, with housing types often dominated by detached homes and luxury amenities.
On the flip side, affordability remains in pockets. Areas such as Xixona, Villena, and Callús de Segura report lower per-square-meter costs, offering more accessible entry points for local buyers and newer investors alike.