House sales in the province have shown a marked rise, even as inflation and economic uncertainty hover in the background. Recent data from the Instituto Nacional de Estadística (INE) highlights a clear shift toward the United States market—yet second-hand homes command an overwhelming share, topping 86 percent of transactions.
In April, a total of 3,098 homes changed hands, marking the highest monthly figure since 2008 and representing a 26 percent increase from the same period last year. While this is a sizable upswing, it follows a softer pace in the preceding months. The first quarter ended with an average gain exceeding 55 percent in transactions, and March alone saw a spike near 69 percent.
“What we’re seeing is a pause. Growth that was rapid is moderating because family budgets feel the pinch of inflation, and the overall economic outlook isn’t as clear,” notes Marife Esteso, president of the Alicante College of Realtors (API).
Esteso observes that domestic buyers and locals are becoming more cautious, while demand from international buyers continues to push the market forward, albeit with a tempered tempo.
On the same line, the portal idealista also suggests this trend toward “stability” will persist in the coming months, though small declines in sales could occur due to higher financing costs and ongoing economic uncertainty, alongside a shrinking housing stock in the market.
Despite improvements in recent years, construction remains subdued. New housing starts stay at very low levels, continuing the shift that followed the real estate bubble burst when most demand moved toward used housing, a market segment where properties meeting buyer requirements are increasingly scarce.
Of the real estate deeds recorded last April, just 428 were for newly built homes, about 13 percent of the total. The vast majority, 2,670 transactions, involved second-hand homes, with the remaining share constituting the balance.
House sales in the province are rising rapidly and reaching 2007 levels
Compared with the prior year, transactions of older homes grew by 8.9 percent, while used home sales surged by 29.2 percent, underscoring the dynamic nature of the market. Despite a slowdown, the sector continues to operate near the peak levels seen in the last 14 years. To surpass this year’s figures, one would need to rewind to April 2008 when 3,350 homes were sold.
Looking at the four-month aggregate for 2022, INE statistics show Alicante recording 15,261 transactions, up from 10,344 year-over-year—a 47.5 percent increase. Among these, 1,990 were newly built (+13 percent), while 13,271 were second-hand (+54.6 percent).
more investors
Beyond rising demand, pandemic-era savings and the desire to hedge against inflation have encouraged investors to seek bricks-and-mortar opportunities. API notes a growing number of buyers acquiring properties with the intent to rent out later, while overall demand for apartments in Alicante continues to exceed supply. When a well-presented flat hits the market, it tends to sell quickly.
This activity is paired with notable price increases. The Ministry of Transport and Urban Agenda reports housing prices rose by 8.7 percent last year, a factor that will influence the pace of sales in the near term.