Even with expectations that sales will keep rising, questions loom about the Alicante housing market. Will demand for second homes offset the slowdown among traditional buyers caused by higher rates? It already feels like the pace has peaked. The province witnessed a notable surge after the pandemic, a surge that now seems to be cooling as rates rise and purchasing power tightens across Europe.
These questions float over Alicante real estate as annual numbers begin to settle. The reality is that the Euribor increases and inflation eroding household budgets are likely to touch a market that posted record figures last year. Many see a turning point approaching, if it has not already arrived.
New data from the Registro de la Propiedad offers a clear snapshot. In the first quarter, the province saw 12,979 home sales, the strongest start to the year since 2007. In the same period, 15,586 homes changed hands.
However, the first-quarter figure marks only a 7.7% improvement versus the same period in 2022, following nearly a 38% jump the year before. In other words, activity is cooling and the market is edging closer to a peak in the current cycle. Nationally, a slowdown is visible with 161,024 transactions, about 2% lower year over year.
In this context, the president of the Alicante College of Real Estate Agents (API), Marife Esteso, notes that Property Records data often shows a lag because there is a delay between a sale being finalized and registered. Street-level indicators also suggest some pullback in transaction numbers.
Despite rising mortgage lending in Alicante, the curve continues upward
Remarkably, Esteso emphasizes that a reduction in supply is a key factor tempering the growth. “So many units sold last year have reduced current availability, making it harder to find what buyers want.” The adviser adds that the situation could ease in coming months as owners who previously leased properties consider selling after recent housing policy changes.
Overall, Esteso does not anticipate a sudden collapse. She points out that foreign buyers, who often transact with cash, account for a substantial share of demand, so shifts in exchange rates do not affect them as much as domestic buyers.
the third market
Alicante remains one of the most active markets in the country. Only Madrid saw more sales in the first quarter, followed by Barcelona. Malaga, Valencia, and Seville also posted strong numbers, reflecting a broad national momentum.
Second-hand homes continue to dominate the market, accounting for 11,176 transactions and about 86% of the total. New construction transactions reached 1,803.
Lack of stock drives new construction in Alicante in Q1
In Alicante, the share of foreign buyers remains notably high at 43.76%. This ranks among the highest regional concentrations of foreign investment, trailing only a few other areas.
mortgage trends
One indicator not yet fully reflecting price changes is the level of mortgages. Registry statistics show that the average mortgage in the Valencian Community was 106,869 euros, a slight 0.2% drop. Across the country, the decline is about 4.1%. In other words, with rising Euribor, borrowers are seeking smaller loan amounts and lighter monthly payments.