Purchasing is not the sole driver here. Global demand plays a strong role in shaping how rental markets evolve, especially in this province. The rental segment has a significant influence on overall pricing, with market data showing price increases that surpassed 18 percent in the previous year.
Recent figures from the Idealista platform reveal that 30.3 percent of people seeking to rent in Alicante come from outside Spain. This figure has climbed nearly four percentage points since 2019 and is more than double the national average, where international applicants account for 14.9 percent. This insight is based on IP address data reflecting unique visitors accessing Idealista’s rental databases from abroad.
Within this framework, Alicante stands out as the province with the highest share of foreign renters among popular tourist cities such as Tenerife and Santa Cruz, boasting 29.6 percent of rental searches by foreigners. The Balearic Islands follow with 27.8 percent. The international tenant stream thus marks Alicante as a leading destination for rental demand.
In Malagua, the market shows notable strength with 26.9 percent of prospective tenants coming from abroad, while Palma registers 14 percent and Barcelona 19.5 percent. Across the rest of the community, foreigners account for 19.3 percent of potential rental demand in Valencia and 14 percent in Castellón.
Alongside climate and quality of life, the rise in foreign demand for rentals also correlates with a broader boom in real estate activity in the region. Remote work and digital nomads are cited by the portal as drivers of this trend, fueling both rental demand and subsequent home sales.
Despite cultural differences, renting remains a common and practical way to access housing in many European countries, including Spain. A contributing factor in the past year has been the surge in energy tourism—noise-free, practical moves by Central European residents who temporarily relocate to manage heating costs amid higher energy prices, a consequence of geopolitical tensions.
When examining tenant origins, notable patterns emerge in comparison with buyers. British buyers lead the lists of purchasers, while Dutch nationals top the rental market in Alicante. Germans follow, then the United Kingdom, with Belgians and the French completing the top five for foreign interest in rentals, according to Idealista data for Alicante.
Buying or renting a home? The Alicante situation in context
The Idealista study provides a state-capital breakdown, and once again Alicante appears at the forefront of the rankings, though with a slightly tempered share than the broader border. Up to 25.9 percent of people looking for flats or houses in the city come from abroad. Barcelona claims the second spot with 24.8 percent of foreign demand, followed by Valencia at 24.2 percent. These figures remain significant, even as they contrast with the buying and selling market where foreign participation still dwarfs rental activity.
Notaries Union data indicate that during the first nine months of the previous year, about 24,000 transactions were formalized in the province. The allure of Alicante continues to grow as foreign demand, together with constrained supply, pushes prices to new highs. Across the province, the average rent for an 80-square-meter apartment nears 720 euros per month, reflecting approximately 9 euros per square meter—an indicator of sustained price momentum in tourism hubs like Alicante city, which posted a robust year-over-year rise of 23.2 percent.
Rising rents and strong demand from international tenants are contributing to a broader pattern of growth in the region. This dynamic often translates into heightened activity in the sales market as well, underscoring the interconnected nature of local housing markets and the appeal of Alicante for those seeking flexible living arrangements or long-term investments.
Notes on interpretation: The data from Idealista provide a snapshot of foreign interest by city and by province, emphasizing both rental and sales trajectories. Observers should consider seasonal demand, tourism inflows, and macroeconomic conditions when assessing future movements in Alicante’s housing market.