Alicante, Torrevieja and Orihuela drive real estate activity in the province after the pandemic
Alicante, Torrevieja and Orihuela stand out as powerful engines in the province’s real estate market as the sector recovered after the pandemic. These municipalities accounted for more than a third of all recorded transactions last year, according to data from the Ministry of Transport, Mobility and Urban Agenda. This performance comes despite not being the municipalities that posted the largest transaction increases since 2019. Coastal towns attracted buyers from the Netherlands, Germany and Belgium, while interior towns lagged behind in the overall recovery. Which areas saw the biggest growth in the last financial year?
In contrast, some communities remained more dependent on foreign buyers, whose recovery has been slower. Overall sales figures remain below pre-pandemic levels in many markets, even as other areas show resilience and growth.
Across the country, a total of 46,091 homes were sold last year. That figure represents more than a 40% rise from 2020, when operations were curtailed by lockdowns, and, importantly, almost a 9% increase compared with 2019, before the pandemic hit. The Metropolitan Alicante municipality led the province in transactions, with 6,619 homes sold, showing that the capital has managed to surpass pre-pandemic levels. When comparing the Ministry data with figures from the Notaries Union, which excludes buyer origin, the rebound appears driven by local and national demand. The share of foreign buyers, roughly one third in Alicante, remained below the pre-covid numbers. [Source: Ministry of Transport, Mobility and Urban Agenda; Notaries Union data]
Sale of homes in Alicante recovers pre-covid levels thanks to a surge of local and national buyers
Torrevieja remains in second place, one of the few municipalities where demand has not fully recovered. Its greater reliance on international buyers meant it suffered larger declines in 2020 and has had a slower bounce back. Vega Baja saw 5,018 transactions, about 4.9% fewer than in 2019, reflecting a slower recovery in certain buyer segments.
Orihuela, in turn, landed in third place with 3,833 transactions, exceeding 2019 levels by about 1.75%. In several other municipalities, demand rose more than the provincial average. Foreclosure-driven purchases, spurred by savings during economic tightening, helped lift local volumes. In Alcoy, transaction volume rose 39% compared with 2019, totaling 1,016 deals. Villena rose by 25.6%, Petrer by 24.5%, and Novelda by about 35.5%, though these gains stemmed from starting from relatively low bases. Elche recorded 3,397 home sales, up 20.5% from the pre-crisis period.
The price gap widens between chalets and flats
On the coastal frontier, the influx of Dutch, German and Belgian buyers is most evident. Madrid and other Spanish provinces also contribute significantly to demand. Denia posted 1,876 sales, up 22% from 2019, while Benidorm showed a modest return to pre-pandemic figures with 1,752 transactions. Xàbia rose by 22.5%, Altea by 26.5%, and Santa Pola by 11.9%. Conversely, communities heavily dependent on British buyers still trail the recovery, as seen in Torrevieja, Guardamar with 825 transactions (down 7%), Calpe with 993 (down 3.5%), and Rojales with 761 (down 5.7%).
Industry outlook remains cautiously optimistic. Local construction and property services associations note steady sales momentum through early 2022, even as concerns about foreclosures and rising costs weigh on planning and marketing for new projects. Availability of skilled labor and pricing pressures continue to shape the pace of activity in the market. [Source: Provincial Contractors Association (Provia) and market indicators]