Alicante’s real estate activity is surging, as recent figures from the Colegio de Registradores de la Propiedad and the Trade Registry indicate. In the second quarter, the province logged 12,146 property transactions, the strongest showing in fifteen years. Yet, market dynamics suggest this peak may be temporary and could ease in the months ahead. Analysts point to a mix of still-limited demand born of the Covid era and renewed buying interest from residents in neighboring countries affected by the Ukraine conflict. The sector anticipates a peak followed by a gradual slowdown, driven in part by broader economic pressures.
Across the Community of Valencia, total home sales in the second quarter reached 24,906, the highest quarterly total in the past 15 years and surpassing 2018 and 2019 balances in solvency. Transactions rose 2.5 percent from the previous quarter and 32.9 percent year over year. Valencia thus ranks third among Spain’s autonomous communities for total sales, behind Andalusia and Catalonia, and holds a market share of 15.20 percent of national activity, eclipsing Madrid by more than 3,000 transactions. Of these, 21,922 involved second-hand residences, a segment where Valencia is second only to Andalusia, while 2,984 were new homes, placing the region fourth after Andalusia, Madrid and Catalonia.
Collegio de Registradores data show that Alicante’s performance is pivotal to this evolution, with 12,146 second-quarter transactions marking its best fifteen-year figure since 2018 and 2019, when volumes stood at 10,534 and 9,473 respectively. The all-time high for the same period was reached in 2007 with 13,967 transactions. In comparison with the first quarter of the year, the second quarter rose by 0.8 percent. Alicante ranked as the third city for sales, behind Madrid and Barcelona. Of the total, 1,398 were new homes, a ranking that places Alicante behind Madrid, Barcelona and Malaga.
Spain’s overall quarterly result shows 163,909 purchases, a 0.2 percent decline from the previous quarter, with figures that reinforce the positive signals seen in Alicante and Valencia among regional markets. The declared price per square meter in the Community reached 1,432 euros, up 1.5 percent from the prior quarter and marking the Balearic Islands, Madrid, and the Basque Country as the most expensive markets. The national average rose to 1,957 euros, climbing 2.4 percent. In Alicante, square meter prices increased the most, by 4.4 percent, to about 1,620 euros per square meter.
Regarding housing types, 21 percent of sales involved detached houses, a segment that has hovered near Spain’s all-time highs seen in late 2020. Overall, the pandemic-era trend appears to be cooling, yet activity remains robust, with a sustained level of market engagement across the region.
The Registradores stressed that housing market strength persists amid uncertainty and mixed expectations for related variables. Annual figures and regional distribution corroborate healthy underlying demand, with an anticipated correction toward lower quarterly figures but still substantial activity when viewed over an extended period. A longer retrospective frame indicates resilience beyond the recent fluctuations.
The health crisis produced a one-time dip in residential activity, yet the recovery soon exceeded pre-pandemic levels. Registrars note that many households reassessed living needs, prompting relocations and a temporary market overhang. This effect has lingered, helping sustain demand while savings rates remained elevated.
Jesualdo Ros, secretary-general of the Real Estate Developers Association of Alicante (Provia), offers a similar assessment. He notes that constrained demand during the pandemic is now loosening, and stresses that the latest published data reflect activity from late last year and early this year, a period when economic conditions were comparatively more favorable. He also highlights rising demand from residents of neighboring countries affected by the conflict in Ukraine. He explains that Ukrainians and nearby nationals have changed residence plans, adding modest volumes but meaningful contribution when aggregated.
House sales in the province rise toward 2007 levels
Industry observers acknowledge that sales are likely to soften in the coming months as the effect of stifled demand wanes and the broader economy becomes less predictable. Antonio Fernández, chief executive of Maisa Promociones, remarked that the first half of the year was extraordinarily strong for both new construction and second-hand housing due to ongoing operations. He cautions that the statistics reflect activity from a somewhat delayed period and that a gradual decline is plausible as economic clarity sharpens.
Fernández also points to inflation and rising industry costs as factors that will influence the market. He notes that the impact on new-home sales has not yet fully materialized but is expected to appear next year, underscoring a more cautious near-term outlook.
Overall, the data suggest that Alicante remains a central hub within Valencia and across Spain, with robust trading and price dynamics that reflect both domestic demand and cross-border influences. The combination of strong activity in the second quarter and the potential for a measured cooling in subsequent quarters paints a nuanced picture of a market balancing resilience with the economic headwinds on the horizon. This nuanced outlook is consistent with market commentary from regional industry groups and official registries, which emphasize sustained momentum even as quarterly figures revert to more typical levels.
At the same time, market observers emphasize the role of price signals and affordability, noting a steady climb in prices that may affect buyer behavior and loan structures in the near term. The Alicante market thus remains a focal point for investors and homebuyers alike, reflecting a broader trend of regional strength tempered by macroeconomic uncertainties. (Fuente: Colegio de Registradores)