The Alicante province has long stood as a key driver of home sales, and the latest quarter reinforces this position. With 12,622 official transactions, it remains third in the national ranking, trailing only Madrid and Barcelona. A notable factor behind this momentum is foreign demand, as roughly 45 percent of buyers come from outside Spain, placing Alicante at the forefront of national activity. Even as signs of market saturation begin to appear, sales show a year‑over‑year rise of about 16 percent, despite a 2.8 percent dip when comparing April to June. Meanwhile, new-build prices continue to climb, rising by about €100 per square meter this quarter due to persistent stock shortages driven by strong demand. This combination of high foreign interest and constrained supply keeps Alicante in a premium position within the housing market. It is also important to note that the rental market remains less active in Alicante, whereas home sales continue to be heavily influenced by the real estate sector.
The latest statistics from the Spanish Association of Real Estate and Business Registrars confirm that Alicante ranks third nationally with 12,622 transactions in the second quarter. Of these, 1,799 were new homes and 10,863 were existing properties. Madrid recorded 18,895 sales (4,544 new and 14,351 used), with Barcelona at 15,628 (2,733 new and 12,895 used). In a broader view, Valencia trails in fourth place with 9,829 homes (1,443 new and 8,386 used), while Castellón registers 2,663 (416 new and 2,247 used). Palencia, Teruel, and Soria register the lower end of the spectrum with 408, 345, and 286 total transactions respectively. The dominant reason for Alicante’s standing is the high percentage of foreign buyers, which accounts for roughly 44.7 percent of second‑quarter activity.
Indeed, Alicante is the most sought-after region among international buyers. Santa Cruz de Tenerife ranks second with 38.01 percent of sales to foreign buyers, followed by Málaga at 32.02 percent, underscoring a broad pattern of international interest and significant tourism potential across the coast and neighboring areas.
Overall, total sales in Alicante rose about 16.1 percent year over year, with new housing up 15.2 percent and second-hand homes up 16.2 percent. Yet, a quarterly slowdown is evident, reflecting a 2.8 percent decrease from the first to the second quarter and signaling a cooling phase that still remains below the national decline of 5.6 percent. Higher interest rates, translating into higher mortgage costs, are contributing to the market’s tempered pace. Yet the market atmosphere remains favorable for priced entries, especially in segments with limited supply.
Alicante also leads in per‑capita sales, outpacing other provinces in the eyes of buyers from abroad. Some observers point to the impact of stock shortages as a key driver of price growth. The average price for new homes rose by 6.1 percent quarter over quarter to €2,181 per square meter, while used homes increased by 1.5 percent to €1,541. The combined average price sits around €1,623 per square meter. In the national context, Alicante sits in the mid‑range of price levels, with Guipúzcoa at the top and several major regions following closely behind.
Industry voices call for regulatory updates to unlock subsidized housing (VPO) construction in the Valencia Community. There is a belief that properties could be marketed around €150,000 with favorable financing, provided that both VPO regulations and the livability decree are adjusted to reflect current needs. The relocation of stock to a more affordable range is seen as essential to widening access, particularly for younger buyers. Advocates emphasize preserving sensible design standards while avoiding overly restrictive demands that could undermine market viability. In this context, the sector expects the new regional administration to help resolve these challenges and restore balance to supply and demand.