In Alicante, housing activity slows as prices remain elevated
The latest indicators confirm a worsening trend in housing sales. A drop in September marks the third consecutive monthly decline for the province, according to data released this week by the National Institute of Statistics (INE). The slowdown is closely tied to higher interest rates, which push up mortgage costs and push parts of the population out of the market. At the same time, rising inflation has squeezed disposable income for many families, making home purchases more challenging.
In September, 3,745 homes were transferred across the province, a year-over-year decrease of 17.5%. While this downturn is slightly less steep than the national picture, where transfers fell by 23.7%, it signals a sharp deterioration from earlier months. The September decline doubles Augusts’ -8.1% drop, and mirrors July’s -9.7% decrease, underscoring a broad market cooling across the country.
This is the town of Alicante where the average listing value has risen toward the seven-figure mark
The Valencian Community Notary College reported a clear contraction in activity for the third quarter, with a projected 15.6% drop. Foreign buyers have reduced their footprint, a shift that began well before the latest inflationary pressures and rate hikes took full effect.
Title deeds for new builds fell by 6.7% in September, totaling 626 transactions. In contrast, second-hand homes, which account for roughly 85% of activity, fell by 19.3% to 3,917 transactions. The market remains dominated by demand tied to housing needs, where local buyers form the core cohort. Even as overall transactions decline, this segment has borne the brunt of higher financing costs and the recent surge in real estate prices in recent years. Consequently, five consecutive months have seen a continued drop in the volume of title deeds for used housing.
Annual balance
With the latest figures, the yearly total is almost flat, barely positive. Through September, some 38,525 operations have been recorded, a marginal 0.87% increase over the same period in 2022. If this pace continues, the year could close with a negative result for the first time since the pandemic period.
Despite the softer annual trajectory, major real estate portals remain optimistic. They note that the comparison rests on last year’s unusually strong performance and suggest that 2023 could still be seen as a solid year in hindsight, even as autumn unfolds. Provincial voices have echoed a similar sentiment, calling this phase a normalization after a period of extraordinary growth spurred by the pandemic and a large influx of refugees from Ukraine and other Eastern European countries seeking stability amid the war.
Another sign of a cooling market shows up in the response of foreign buyers. The General Council of the Official Colleges of Real Estate Brokers in Spain describes a fatigue taking hold at this stage of the year, driven by inflation, political uncertainty, and ongoing legislative changes. Families are delaying big decisions, and the market has begun to reflect this cautious stance.
Real estate slowdown in Alicante affects foreign buyers
The overall mood across the sector points to a period of hesitation as inflation and political shifts create headwinds. Some observers highlight that foreign buyers have reduced their activity, and the national picture aligns with this trend as buyers weigh financing costs against potential gains. The market continues to respond to changes in policy and macroeconomic conditions, with local dynamics playing a pivotal role in shaping activity levels for both buyers and sellers.