The surge of foreign buyers registering after pandemic restrictions eased continues to fuel vibrant home sales in Alicante. Data from January show at least 4,684 closed transactions, the highest monthly total since 2007 prior to the real estate downturn. Alicante ranks as the third most traded region in the country after Madrid, which recorded 7,026 sales, and Barcelona with 5,565 sales.
Alicante finished 2022 with about 50,000 property deals, up roughly 38% from the year before, marking the province as the strongest improver in Spain’s residential market. This volume propelled Alicante into the top ranks nationwide, placing it behind Madrid and Barcelona in total sales, where 83,308 homes were sold, representing a 3.9% rise year over year. The combined activity reached 66,537 transactions with a 15.1% annual gain. Yet the growth rate in Alicante slowed slightly in the last quarter, a trend seen as a sign of a stabilizing trajectory at the start of 2023.
The sector’s upbeat start to the new fiscal year contradicts any myth of a downturn. The industry is posting memorable figures that echo a 16-year peak in activity, with the housing market behaving like it did in the strongest years before the Great Recession. A key driver behind this momentum is sustained foreign demand, including regular buyers from Scandinavia and the United Kingdom, along with interest from Eastern Europe. Provia notes that the wartime disruption spurred a surge in buyers from Ukraine and nearby countries such as Poland, Estonia, and Latvia, among others. The national market also reflects strength, with housing increasingly seen as a safe asset and a hedge against volatility, according to Provia’s assessment.
House sales in the province increased by 55 percent in August
One standout trend is resilience in activity despite rising interest rates from lenders. The market is expected to slow only gradually, with a normalization likely to occur after the extraordinary year just past. Experts forecast that first-time buyers may face slower year-over-year sales declines, but a sharp downturn is not anticipated. Provia emphasizes that construction activity is likely to stay steady, driven by on-demand work and continued participation from buyers who cannot attend in person.
Source information from Provia indicates that the favorable dynamics are broadening beyond Alicante as both domestic and international buyers contribute to sustained liquidity in the local real estate market. The ongoing interest from international buyers reinforces Alicante’s appeal as a gateway market with strong fundamentals, including favorable climate, lifestyle advantages, and improving infrastructure that continues to attract families and investors alike.