Real estate activity in Alicante shows a resilience that has surprised many observers. While sales declined across much of the country due to higher interest rates and economic uncertainty, Alicante has kept a steadier pace. The province continues to attract a strong presence of international buyers, notably from Eastern Europe, and new construction deliveries have kept the market moving, albeit at more modest levels than last year.
May brought a clearer picture. Land Registry data show 4,907 housing sales in Alicante, a 5% increase year over year, according to INE figures released recently. This stands in contrast to a 6.4% drop national-wide in the same month and year. Looking at the first five months of the year, Alicante recorded 21,815 transactions, up 9.3% from 2022, though the monthly evolution has been uneven, marked by pulses of activity rather than a steady ascent. January showed notable vigor with a 19% year-over-year surge, while March slowed to a 5.4% rise, April touched 9%, and May settled around 5%.
In the latest month, the standout trend is the sharp rise in new construction activity, which surged 45% compared with the previous year, totaling 774 transactions versus 533. Meanwhile, the used-home market remained sizable, accounting for 4,133 deals, though this was five fewer than in May 2022.
Year to date, the market’s headline remains: a 25% increase in new residences and a 7% gains pace for resale homes. The overall dynamic points to a post-pandemic shift where developers and buyers alike adjusted expectations and timelines for delivery and purchase. A building boom on the coast, including San Juan and surrounding areas, illustrates the renewed appetite for both primary residences and investment properties.
The provincial association of Alicante promoters notes that much of this recovery is tied to deliveries of homes sold off-plan during the post-lockdown period, now reaching completion. The shift from project announcements to completed units has accelerated, helping builders manage inventories and meet buyer demand as markets reopen and financing conditions stabilize. In practice, most buyers are taking possession of completed homes or moving quickly to notarize new deals, creating a steady stream of transactions that continues to support prices and activity levels.
Market insiders emphasize that the second-home segment remains a meaningful driver. Many buyers aim to secure properties before summer, ensuring immediate enjoyment of vacation homes while construction completes on newer projects. Operators report that stock for finished homes has diminished, prompting ongoing launches of new developments with a large share already sold or provisionally reserved. This behavior underscores a healthy appetite for quality coastal living and investment opportunities in Alicante.
The new-construction segment shows resilience not only in volume but in sales structure. Off-plan transactions retain strength because a significant portion of buyers originate abroad and often limit their financing exposure. This reduces the sensitivity to rising mortgage costs seen in other markets. The combination of foreign demand and prudent financing translates into a robust off-plan market and sustained completions that keep the construction cycle active.
In price dynamics, the latest Notaries Union data for the first quarter reflect a continued upward trend in transactions with international buyers. Purchases by citizens from Poland, Ukraine, and other countries have contributed to price momentum, especially in properties that attract foreign buyers seeking long-term investments or seasonal residences. While some nationalities such as Britain, Sweden, and Germany show declines, international demand overall continues to support price levels and transaction activity.
Analysts in Alicante highlight a broader pattern: the post-pandemic rebound has achieved a broader geographic mix of buyers, with Europe and beyond contributing to market strength. For investors in Canada and the United States, Alicante presents a compelling balance of property types, delivery timelines, and rental demand, particularly before and after summer periods when tourism accents local demand and rental yields. The evolving landscape suggests opportunities across new builds, completed homes, and rental-ready properties that appeal to international buyers looking for stable income streams and potential appreciation.
In summary, Alicante’s real estate market demonstrates a durable post-pandemic recovery, anchored by new construction, sustained interest from international buyers, and a gradual rebalancing of supply to meet demand. The market is reshaping itself with clear attention to timely deliveries, strategic locations along the coast, and a growing appetite for both primary residences and vacation properties among a diverse pool of buyers.
As the market continues to evolve, observers note that careful selection of projects, robust delivery schedules, and access to flexible financing will be decisive for buyers and developers alike. The region remains a key focal point for investors seeking a blend of lifestyle appeal and long-term value in a resilient European market.