The Alicante real estate market set a first quarter record for the provincial housing market, according to statistics from the College of Realtors. Sales in the January-to-March period reached 12,046 homes, a 52% rise from the same period a year earlier and more than 28% above pre-pandemic levels.
In fact, the momentum is so strong that it stretches back to at least 15 years ago, to the summer of 2007, when the market posted more quarterly transactions before the housing bubble burst. The difference then lay in the mix: new constructions dominated roughly 45% of activity, while today the spotlight shifts toward the resale sector, which now accounts for about 88% of all transactions.
Despite these figures, industry professionals do not see an imminent new bubble, at least for now. They point to a combination of factors driving the surge in activity, with a trade boom that began after lockdowns and has continued to accelerate ever since.
A client looks out the window of a real estate agency in Alicante. Column Cortes
“There is latent demand and mortgage rates remain low; they are still accessible, and buyers want to act before rates rise,” said the president of the Alicante College of Realtors, Marife Esteso.
covid effect
It is important to consider the so-called covid effect—demand created by people seeking more space and a better quality of life after months in compact apartments. With restrictions lifted and borders reopening, foreign buyers have returned, a trend that has continued even in times of regional conflict. As Peter Casamayor, managing partner of Grupo Casamayor, notes, the situation has even drawn buyers from nationalities not previously common in Spain.
Home sales to foreigners rebound strongly, surpassing pre-covid levels since summer
In addition, a portion of savings has moved away from low-yield financial products into real estate as a stable store of value. Many buyers aim to rent out properties for solid returns. In Alicante, buyers are largely from Madrid and other northern regions, according to Juan Carlos Sempere, owner of Abaco Servicios Inmobiliarios. He notes that current flat prices and high rents help to produce returns above five percent with relative ease.
Sale of homes in Alicante recovers pre-covid levels thanks to explosion of local and national buyers
The combination of these factors supported sustained growth in home sales as the pandemic situation improved from the second quarter of the previous year. Activity rose from 7,901 operations in the January-March period of the prior year to 8,280 in the second quarter, 9,925 in the summer, and 10,000 in the last quarter. The number reached 12,046 in early 2022, placing Alicante as the third province in Spain by transaction volume, just behind Madrid with 22,356 and Barcelona with 16,423. Across Spain, 164,299 homes were sold in the first quarter, up 27% from the same period in 2021.
Of the total properties sold, 10,499 were second-hand, accounting for 88% of the total, while 1,547 were newly built, representing 12%.
second quarter
Looking ahead to the second quarter, professionals agree that the market remains highly active, with room to surpass the early-year figures. Yet some note that tighter financial conditions, driven by higher Euribor rates, may temper the pace. Pedro Casamayor anticipates a degree of cooling as borrowing costs rise, while Juan Carlos Sempere believes the increases are not yet significant enough to curb demand substantially.
Overall, the Alicante market shows a robust trajectory, supported by diverse forces, including continued foreign interest, domestic demand, and the search for stable returns in a climate of volatility in other investments. The market remains a focal point for buyers seeking value in a region of growing appeal.