Real estate activity in Alicante has shown resilience in the face of a slowing national market, driven by higher borrowing costs and ongoing uncertainty. International buyers, particularly from Eastern Europe as a result of the Ukraine conflict, have remained a key force, while new construction deliveries continued to impact the province’s volumes. Overall activity stayed steady, though significantly below last year’s peaks.
In May, Alicante registered 4,907 property transactions, a 5% rise year over year, according to INE data published on Friday. This contrasts with a 6.4% national drop in the same month, highlighting a divergence between regional and national trends.
For the first five months of the year, total transactions reached 21,815 in the province, up 9.3% from 2022. Yet the pattern has shown variability, with moments of brisk activity followed by slower periods. January kept momentum with a 19% year-on-year growth, while March cooled to 5.4%, then rose to 9%, and settled around 5% in April and May.
When examining May alone, the standout detail is the strong rise in new construction transactions, up 45% from the prior year. There were 774 new-build deals versus 533 a year earlier. On the other hand, resales remained the dominant segment, with 4,133 deals, though this was down five from May 2022.
Looking at the year to date overall, new homes have climbed by 25% while secondary residences have risen by about 7%.
post-pandemic boom
The provincial secretary of the Alicante Promoters Association notes a notable recovery, attributing it to a period when many off-plan purchases were delivered in 2021 as the post-lockdown recovery began. This timing has translated into a robust delivery pipeline and renewed buyer interest.
Residential tourism remains resilient in Alicante, with buyers from Eastern Europe playing a prominent role. After a pause in 2020, many projects restarted in 2021 and demand surged, prompting developers to push promotions to completion to capitalize on interest before the summer. Some homes notarized during this period were ready for immediate occupancy, enabling buyers to enjoy seasonal use without delay.
By contrasts, stock levels for finished homes were depleted as developers sold off completed inventory and quickly initiated new projects, with a majority of units already sold. The market for second homes tends to align with shorter closing timelines, especially when promotions target summer occupancy.
The destinations continue to see a mix of off-plan and completed sales. In contrast to older second-hand sales, the new-construction segment shows longer cycles but remains buoyant, largely because many international buyers require little financing or small upfront payments, making them less sensitive to mortgage rate hikes than in the past.
Housing prices in Alicante have continued their upward trend, even as interest rates rise. The latest Notaries data for the first quarter show a moderated but persistent growth in transactions to international buyers. Purchases by Polish, Ukrainian, and Russian buyers have increased notably due to the regional conflict, while demand from British, Swedish, and German buyers has cooled.