Finding affordable housing in Alicante has grown tougher with each passing month. The boom in property trading since mid last year, along with a surge in transactions that followed the housing market rebound, has depleted a large portion of the current stock and reduced sales opportunities for buyers. At the same time, that higher activity has coincided with a notable rise in prices across the province, now running above 8 percent per year.
The result is that households on tighter budgets face greater difficulty in locating an apartment that meets their needs. In May, data from Idealista show that only 23.2 percent of listed homes in the city of Alicante fell under the 100,000 euro threshold considered affordable by the portal. This is about 3.1 percentage points lower than the same month a year earlier when 26.3 percent of listings were below that range, suggesting a continued downward trend as price growth persists.
The study notes that these figures reflect the prices announced by sellers and that buyers should add a minimum of 11 percent to cover additional costs such as VAT and notary fees. The narrowing supply of affordable flats is not unique to Alicante and was observed in several state capitals across the country. The most significant reductions in affordable stock occurred in major markets including Toledo, Castellón de la Plana, Granada, Tarragona, and Soria, among others. In some cities the share of homes under 100,000 euros dropped notably from early 2022 levels.
In contrast, pockets of the country still report some affordable opportunities. Palma de Mallorca shows a very small share of under 100,000 euro listings, around 1.1 percent, with modest percentages in nearby Palma and other major cities. This trend underscores the geographic divergence in affordable housing across the country.
Housing prices accelerated in the province over the last year, rising about 8.7 percent according to current data.
A separate trend reveals certain cities increasing the volume of affordable housing relative to their markets. Huelva, Leida, Avila, and Zamora report relatively strong gains in affordable stock, signaling regional differences in affordability dynamics that merit closer observation by buyers and policymakers alike.
If the affordability threshold is extended to 200,000 euros, the share of listings below this price point also declined. In Alicante, for example, 60.3 percent of the supply sat below that threshold a year ago, but today the figure stands at 56.7 percent, illustrating that affordability remains tighter even when broadening the price band.
In the first quarter of the year the province saw 12,046 homes sold, according to the College of Registrars. That figure marks a 52 percent increase from the same period last year and surpasses pre pandemic volumes by more than 28 percent. It stands as the strongest quarterly trading activity since the summer of 2007, highlighting the intensity of current market demand across the region. These numbers emphasize a market where demand is robust, supply is constrained, and price growth continues to challenge buyers seeking affordable housing options.
At a glance, the Alicante housing market today shows a clear split: solid transaction activity and rising prices on one side, and narrowing access to affordable homes on the other. Prospective buyers should monitor price trajectories, inventory levels, and regional variations closely as they navigate a market that remains competitive and financially demanding for many households.