The Alicante real estate market has attracted more international buyers and generated higher revenues in the first half of the year than ever before. The reopening after the pandemic, an improving economy, and rising interest rates helped push activity before the summer, with many Central European citizens seeking a second home to hedge against potential energy shortages and tensions next winter.
Between January and June, foreigners purchased 15,930 homes in Alicante, nearly double the amount in the same period last year and about 40% more than the first half of 2019, according to data from the Valencian Notary College. In other words, roughly 90 transactions per day were recorded, representing the highest level in the long-running series.
“The level of activity was extraordinary; the numbers were striking,” said a close associate of the vice dean of the Alicante Notary Association. The observed surge is attributed to a mix of factors that intensified in these months: expectations of mortgage rate increases, the option to treat real estate as an investment, and savings remaining in banks amid inflation.
“Demand remained robust through July, but the question now is what will happen in the latter part of the year, when the pace may slow,” the official noted.
Alongside more deals, foreigners paid a higher average price for each home, rising almost 8% to reach a mean of 174,387 €, compared with 117,120 € spent by local buyers. One noted difference is that foreigners, who are the main customers for new construction projects, tend to buy more chalets and cluster their demand in tourist hotspots where the price per square meter tends to be higher.
As a result, the international market surged within six months, contributing about 2,777 million euros in the province, compared with 1,615 million euros in the same period in 2019. To put that into perspective, the province’s main industrial exports totaled around 667 million euros in that period, while Alicante-based companies reported foreign sales of approximately 3,567 million euros, which did not even equal a quarter of the real estate activity.
Who buys the most luxurious houses in the province?
From the Provincial Supporters Association, the general secretary noted that demand has been extraordinary in recent months, with war fears accelerating sales. In addition to Ukrainian buyers, contractors showed a noticeable rise. Buyers from nearby conflict zones and other Central European countries appeared in greater numbers, driven by concerns about higher energy prices and potential gas supply disruptions next winter. For example, Germans purchased 1,408 homes in the first half, more than double the pre-pandemic norm, according to notarial data. Lithuanians bought 266 homes, and Romanians rose to 463.
Foreign interest shifting to Murcia or Almería
The trend also included a notable shift with buyers from several countries expanding into Alicante. Dutch buyers reached 1,412 purchases, up from 562 in the first half of 2019. French buyers totaled 968 transactions, about 40% above pre-pandemic levels. Russians, despite currency transfer challenges, bought 508 homes. The Belgian market remained active with 1,490 sales, making it the second-largest international segment after the British. Swedes completed 1,176 transactions, up 28.6% from 2019, while Norwegians stood at 470 homes, reflecting a gradual return to pre-COVID levels.
British buyers lead the market despite Brexit
British buyers continued to dominate the market, even after Brexit. In the first half, they accounted for 2,372 transactions, more than double the previous year and about 10% above 2019 figures before Brexit took full effect. It should be noted that some of these purchases involve British residents who have chosen to stay long term in the region. The distribution within the province shows Orihuela as the top destination with 535 purchases, followed by Torrevieja with 212, Rojales with 197, Xàbia with 136, and Pilar de la Horadada with 99.