The housing rental market in Alicante has surged beyond typical levels, driven by a tight supply and strong demand. Data from a national survey shows a notable annual increase of 17.9 percent, with current prices averaging 10.59 euros per square metre. This places Alicante among the provinces with the sharpest gains, with only a few regions recording larger movements. Orihuela and Benidorm stand out as leading municipalities pushing rents higher not just locally but across the Valencian Community, reflecting broader pressure in coastal markets and tourist zones.
Limited housing stock continues to push rents to record highs. A Fotocasa study notes a brief monthly dip in July, yet the year-over-year rise remains persistent, underlining ongoing demand. The price per square metre remains at 10.59 euros despite the minor monthly adjustment.
The region-wide overview shows the Balearic Islands at the forefront of price growth, followed by Santa Cruz de Tenerife, Las Palmas, and Tarragona, each with double-digit increases and varying average rents per square metre. These regional patterns highlight how coastal and tourist-driven markets can outpace national trends.
Meanwhile, several provinces have seen price declines. Albacete, Palencia, Álava, Huelva, and Cuenca recorded reductions, illustrating the uneven geography of rental dynamics across the country.
Across the nation, the average price increase stands at 3.4 percent, a figure notably lower than Alicante’s surge. The national average price per square metre sits around 11.59 euros, slightly higher than Alicante on a per-metre basis but not dramatically so when viewed in the national context.
In terms of affordability within major cities, Barcelona leads with the highest rates, followed by Madrid, the Balearic Islands, Gipuzkoa, Vizcaya, Las Palmas, and Málaga. Alicante appears mid-pack among larger urban centres, with several smaller cities and towns showing lower rates per square metre.
A house for rent in the municipality of Santa Pola. AXEL ALVAREZ
Within the Valencian Community, Alicante posted the largest increase, with rents rising strongly and averaging a notable level per square metre. In Castellón, prices also rose, marking continued growth across the region.
Beneath the regional headline, year-over-year rent growth remains widespread within the community. Orihuela shows a substantial jump, followed closely by Benidorm, Burjassot, Alicante itself, and Valencia, with Elche, Castellón, and El Campello also posting gains.
Among the municipalities in the community, the most expensive listings include Alboraya near Valencia and Benidorm, with Santa Pola and Calp representing varying price points within the wider market.
One in five houses in Alicante are vacant despite high rent demand
Behind Alicante’s steep rent increases lies a tight supply situation. Real estate professionals share that price climbs are most pronounced in coastal and tourist-heavy areas. Local associations and realtor groups point to a market with fewer listings and ongoing uncertainties for landlords who worry about defaults, contributing to the overall squeeze.
In a surprising twist, the province faces a vacancy challenge even as demand remains strong. National data indicate a substantial number of vacant properties nationwide, tied to renovations and homeowner hesitation in the face of market volatility. This tension underscores the gap between the appetite for rental housing and the availability of ready-to-rent homes in Alicante and beyond.