Despite a recent slowdown, the Alicante real estate market remains the most dynamic in the Valencian Community and one of Spain’s strongest across the country. Foreign buyer demand continues to shape the scene, while Alicante’s appeal to investors supports sustained activity, according to a Tecnocasa real estate franchise study.
The report highlights that the province records 4.26 years of operation per 100 homes, a figure well above the levels seen in Valencia and Castellón, which stand at 2.89 and 2.77 respectively.
Beyond this, activity sits above the national average, with 2.66 transactions per 100 properties, underscoring the region’s appeal to buyers.
In terms of population, Saint Fulgencio leads in sales volume per 100 registered homes at 7.07, followed by Torrevieja with 5.89 and Rojales at 5.88, all within the Vega Baja region, a powerhouse of the local market.
In the La Marina area, Altea and Calpe rank fourth and fifth respectively, with 5.27 and 5 transactions per 100 homes, according to the same data set.
Home sales in Alicante show a renewed pace of decline in September
The study notes that while Alicante’s market remains buoyant, September brought a clearer picture of slowdown in certain municipalities, even as overall activity stays robust relative to neighboring provinces.
Prices continue to rise
Beyond the dynamic activity indicators, the Tecnocasa report delves into price trends, focusing on Alicante City. The market shows sustained price levels for existing homes, with the year-over-year increase in the second-hand housing rate moving into the high single digits, and rents climbing as well—reflecting a tightening rental market and growing demand.
This snapshot comes from data gathered through Tecnocasa’s Alicante network. The city’s investors are especially prominent: they account for a large share of transactions and influence the character of the market by converting properties into short-term or long-term rentals to maximize returns.
According to Lazaro Cubero, Director of Analysis at Tecnocasa, the average profitability for buyers aiming to rent holds around seven percent per year, backed by favorable purchase prices relative to other major capitals and a strong rental income stream.
Which buyers are paying the most in Alicante
The report also highlights a notable shift caused by housing policy changes, which could reduce overall supply. It estimates a potential 19.7 percent decrease in stock, equating to about 6,600 fewer rental units in Alicante once current contracts expire. Additionally, around 9.3 percent of homeowners are considering selling to avoid future complications, while 10.4 percent are thinking about renting for purposes other than primary residence.
Another striking finding is the gap between asking prices and what the market actually pays. Property owners tend to overprice their homes by roughly 18 percent on average, according to the study.
Three out of four homes are paid for in cash
Tecnocasa’s figures show that about 74.3 percent of properties sold in Alicante City are bought with cash. Among buyers seeking financing, fixed-rate mortgages represent 54.8 percent, a figure that has eased from 60 percent last year and far below the 93 percent seen in 2021. Blended mortgages now account for about 32.3 percent of deals. In terms of demographics, roughly 40 percent of buyers are aged 25 to 44, and more than half hold permanent employment contracts.