Alicante’s real estate market continues to show resilience despite recent fluctuations in borrowing costs, a trend supported by sustained demand from international buyers and local investment appetite. In the province, sales activity remained strong through 2023, following an exceptional 2022, while price levels stayed steady. This stability underscores how Alicante has become a compelling option for both primary residences and holiday homes, attracting buyers who view property differently than in many other markets.
Marivó Esteso, president of the Alicante Association of Realtors, notes that multiple factors are at work. On one hand, housing remains an attractive investment in a region famed for its coastline, climate, and lifestyle. There is especially robust demand for coastal homes as both first and second residences. Alicante stands out for having the highest number of purchases by foreign buyers from nations with strong purchasing power, including France, Belgium, Sweden, Germany, and the United Kingdom, as well as buyers with higher incomes who see long-term value in Spanish coastal living. This dynamic reinforces a steady flow of transactions and keeps price levels from drifting downward even when financing costs rise. [Source: Alicante Association of Realtors]
“In many deals, Euribor is not the decisive factor it once was,” Esteso explains. Data from the fourth quarter of 2022 show that about 65% of new mortgage loans issued were fixed-rate, a preference that helps buyers budget with greater certainty amid rate volatility. Additionally, buyers are extending the duration of mortgage contracts as a strategy to offset higher rates. There is also a significant share of real estate movements that do not involve mortgages at all, which further contributes to market activity. Esteso emphasizes that roughly 30% of transactions proceed without mortgage financing, illustrating a flexible market where cash or alternative financing plays a key role. [Source: Alicante Association of Realtors]
Looking ahead, the market sentiment has shifted positively in the wake of a notable decline in rates attributed to the Silicon Valley Bank situation. The easing of rate increases has renewed confidence, encouraging previously paused transactions to restart and appealing to buyers who may have hesitated due to rate risk. This recovery momentum is particularly meaningful for agents and sellers who experienced a slower period, as it signals renewed activity and the potential for price stability to continue in the near term. The Alicante real estate ecosystem benefits from a blend of resilient demand, favorable financing options for a broad spectrum of buyers, and a diversified pool of international investors who continue to view the region as a premier destination for real estate investment and lifestyle. [Source: Alicante Association of Realtors]