Follow real estate trends in Alicante as interest rates rise. Many young, low-wage couples face limited financing options and uncertainty. This situation, which has pressured the economy, contributed to a new drop in housing sales last November, marking the fifth straight decline of this indicator.
Moreover, the signs point to ongoing weakness in the coming months. As long as Euribor stays relatively high and households regain purchasing power lost over the past two years due to inflation, the market may remain soft. A persistent shortage of available properties at reasonable prices adds to the challenge, a point emphasized by major real estate portals this Friday.
According to data from the National Statistics Institute, 4,004 houses were sold in the province in November, down 12% from the same month in 2022. This represents a slight acceleration in the pace of decline, given that October’s drop was 11%.
Beyond monthly figures, the year-to-date performance also turned negative after five consecutive months of decline erased the gains from the first half of the year, mirroring other economic indicators. Recently published export figures also illustrate a similar trend, as they moved from a positive start to a downturn since last summer.
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In this context, the total number of housing transactions recorded in the provincial Land Registry from January through November was 46,324, down 1.4% from the same period a year earlier. This signals a broader pause in activity across markets tied to financing conditions and demand.
Big decrease in used houses
By type of real estate, the decline is most pronounced in the second-hand segment, which now accounts for over 85% of the market. November saw 3,418 transactions in the resale category, a drop of 14.7%. In contrast, new construction rose by 9.9%, with 586 operations recorded.
It is worth noting that the second-hand market tends to reflect demand more quickly. The INE data are primarily drawn from deeds of title. New-build activity reflects properties delivered or sold off-plan, often more than a year before completion.
National market
Compared with the national landscape, Alicante remains slightly above average. National declines reached 15.1% in November, about three percentage points higher than the national average, and a ten-month contraction has already taken hold across the country, with the slowdown beginning earlier. Foreign interest in Alicante helped delay the cooling to some extent.
Despite these figures, leading portals note that transaction volume remained relatively high even with the declines. Idealista reports that 2023 may close as the second-best year for the industry since the bubble burst at a national level, a view echoed by Fotocasa.
The General Council of Real Estate Brokers also sees no imminent cause for alarm, but acknowledges that the downward trend continues. Markets may take several more months to stabilize.
Experts say that, beyond weaker demand, a limited supply after two exceptional years of sales contributes to the slowdown. Sellers must adapt to current buyer needs, particularly regarding features, location, and price, to reenergize activity.
In summary, the Alicante market is navigating tighter credit, higher monthly payments, and a cautious buyer base. The interplay between mortgage costs, inflation-driven purchasing power, and a finite supply of homes continues to shape monthly results and long-term expectations across the province and beyond.