The rental market in Alicante has shown surprising resilience. For investors weighing options, buying to rent in the last year often outperformed traditional savings vehicles such as time deposits and parts of the stock market, making rental housing an appealing alternative in the current financial landscape.
According to Fotocasa, profitability for landlords in the Alicante province rose by 6.7% per year in the recent period, edging slightly below the national average of 6.9% but above the regional benchmark of 8.2%. These figures underline a decade where rental income has generally moved higher, driven by persistent demand and steady price growth in many municipalities. Even so, profitability varies widely from one town to another, largely influenced by property prices and the rent tenants are willing to pay.
Those aiming for the highest returns from Alicante housing should consider the data carefully. Fotocasa reports annual rent returns that can reach as high as 10.2% of the invested amount in some markets, a level that has roughly doubled over the past ten years. In practical terms, this means some investors have seen rent-driven profits more than double the initial investment over a decade, a trend worth noting for long-term planning [cita Fotocasa].
Territories like Torrevieja stand out with returns around 7.3%, while other towns reach around 7% according to Fotocasa’s assessments. Across the province, despite higher purchase prices in Alicante, rental profits have remained robust, averaging near 6.9% per year as rents have climbed in parallel.
In listings and annual summaries, the overall profitability picture shows specific municipalities outperforming the provincial average. For instance, St. Vincent and nearby areas report returns close to the regional mid-range, while El Campello and Elche maintain respectable yields in the mid-to-late single digits. Benidorm, though still profitable, sits a touch lower, and Orihuela recognizes the smallest returns within the province at around 4.7% [cita Fotocasa].
On a national scale, Huelva tops the chart with about 11.1% annual returns, followed by Murcia and Valencia each near 8.8%. Conversely, Ourense appears at the lower end with roughly 5% annual returns. These contrasts highlight how local dynamics—such as wage growth, tourism, and housing supply—shape rental profitability across Spain and serve as a reminder for investors that geography matters just as much as market timing [cita Fotocasa].
Only one in ten Alicante apartments meets rental assistance criteria
Fotocasa’s operations chief notes that housing profitability represents a focus for investors seeking investments with relatively lower market risk. Real estate has earned a reputation as a sanctuary amid uncertain macro conditions, including the economic aftershocks from global events and inflationary pressures. After pandemic recovery, many individuals view property as a safe store of value, with rental housing becoming an increasingly attractive vehicle for preserving savings and pursuing wealth-building through steady income.