The real estate surge observed since the health situation began to normalize is expected to ease in the coming period. The Alicante Realtors Association projects a slowdown in both sales and price growth, yet the province should stay vibrant and better withstand the broader dip in demand seen in coastal markets, particularly from international buyers.
Association president Marifé Esteso notes that 2021 saw an exceptional volume of transactions, while 2022 moves toward a more balanced pace that is likely to continue into 2023. Alicante tends to exhibit lower volatility due to the coast’s strong pull and sustained foreign demand for housing, which remains robust. He adds that rising interest rates impact other markets more noticeably, since about half of sales in Alicante are cash transactions, so changes in the Euribor have less effect here.
In this view, he points out that potential effects from Brexit or the war in Ukraine have not substantially affected sales. Transactions frequently occur in areas such as Altea, Calpe, and Benidorm, with buyers from the Netherlands, Norway, Sweden, Denmark, and Germany. Digital and climate-conscious nomads, along with professionals who work remotely, are drawn to Alicante for its beaches and high quality of life, seeking a climate-friendly home where energy costs at home are more manageable than in colder countries.
As a result, real estate professionals anticipate that price restraint and a slight slowdown in sales in the latter part of 2022 will extend into the next year, without triggering major corrections in the market.
On the housing market for new developments, Alicante APIs expects solid performance in 2023, driven by deliveries of projects started in prior years and solid demand that helps keep prices elevated.
Regarding rents, the market is expected to become even tighter due to limited supply, prompting renewed calls for tax incentives and regulatory clarity from authorities to encourage owners to rent properties.
Alicante expands boom in best summer home sales since 2006
An illustration of the current favorable climate for the sector is the summer period from July through September. In the province, 14,540 transactions were finalized, according to data from the Ministry of Transport, Mobility and Urban Agenda, marking a 22.4% year-on-year rise and well above the national average of 3.8%. This was the highest transaction volume for that season since 2006, when 17,223 homes were sold amid the housing bubble.
discharges
Looking at the agent community itself, Esteso aims to maintain a high enrollment rate within the Alicante Realtors Association (APIAL) after the Valencia Community Register of Realtors commenced. He notes that the association is ready to assist industry professionals obtain liability and surety insurance at favorable costs, complete registration, and access necessary training to enter the market.
The central government’s rent cap is expected to shrink the rental supply
Esteso warns that the 2% cap on rent increases will further reduce the already tight supply of rental housing in the country. He argues that this measure erodes owners’ profitability amid inflation and questions why the increased costs are not passed through to tenants.