It may sound contradictory, yet it reflects a clear reality. In the province of Alicante, one in five homes remains vacant even as there is strong demand for rental properties. The root causes are multifaceted: distrust between landlords and renters, and a perceived need for reforms in the rental sector. Currently, at least 209,000 flats sit unoccupied. Cities like Torrevieja, Orihuela, and Alicante head the list, but virtually every municipality records elevated vacancy numbers that, if tapped, could help meet many families’ housing needs.
Rental activity in Alicante faces significant pressure driven by a shortage of available units. Prices have climbed to record highs, averaging around 1,008 euros per month — roughly 30% higher than at the start of the year. In concrete terms, rents often exceed 1,300 euros in Alicante, about 1,800 euros in Benidorm, and can reach 2,500 euros in Finestrat, illustrating the steep premium demanded by the market.
What stands out is the paradox: a large stock of vacant homes exists while rents soar. The latest data from the National Institute of Statistics (INE), based on energy consumption, show at least 209,000 vacant residences in Alicante’s total census of 1,350,000 homes. Including second homes, this figure could rise to roughly 596,000 properties. When looking at unemployment-linked vacancies, Torrevieja tops the list with 30,639 empty homes, followed by Orihuela with 24,109, and Alicante with 15,733. Elche records 9,585, Benidorm 8,658, Santa Pola 7,526, Dénia 5,551, Guardamar del Segura 5,431, Calp 4,719, and Alcoy 4,450. Further along are Xàbia with 3,973, Elda 2,453, and San Vicente del Raspeig 1,617. These numbers illustrate a tough mismatch between supply and demand, even as vacancies persist.
The contradiction remains striking: owners with vacant units are not capitalizing on the high rental prices, and the market would likely benefit from renovations that could unlock supply. A notable factor is that many flats sit empty because owners see too much risk in renting them out, rather than because demand is lacking. As reported by INE, some properties cannot be rented or sold at present due to their condition. This is echoed by several property owners who fear problem tenants, damages, or rent defaults, preferring to keep homes off the market rather than face potential losses. These concerns form a significant barrier to leasing, despite strong market prices.
Observers point to the need for greater legal clarity that protects landlords in cases of non-payment or unlawful occupation. Tax incentives and rehabilitation benefits could provide positive incentives to rent or sell, while overly punitive policies are seen as dampening investment by some owners. The impression is that a more balanced regulatory framework would encourage owners to place vacant units back into the market, reducing vacancies and stabilizing prices in the long run. Real estate professionals in Alicante concur. Juan Carlos Sempere, director of Abaco agency, notes that price increases reflect a supply shortage, with inventory moving quickly. A key barrier is legal insecurity. Owners worry about defaults, yet many believe rental insurance could mitigate these risks and unlock more units for the market.
Pedro Casamayor, from his own real estate firm, expresses a similar view. Investors fear renting and thus keep properties idle, opting to sell directly or rent to tourists instead. While insecurity and reform needs are central, other factors also surface in studies: some owners inherit properties and either cannot decide how to use them or expect family members to occupy them soon. Others claim that properties are kept vacant for occasional use as second homes, or because owners have not used them for years and fear tenant issues. Personal circumstances, lawsuits, unattractive neighborhoods with low demand, or health and social emergencies can also influence decisions to leave units empty. This nuanced picture emerges from Fotocasa’s regional analysis, which highlights Valencia as the region with the most vacant homes, followed by Catalonia and Andalusia, while Madrid records the fewest vacancies. The study also links vacancy rate to ownership concentration: single-property owners show a lower tendency to leave homes empty, whereas owners with multiple homes exhibit higher vacancy rates. These patterns suggest that ownership structure and personal risk assessments play substantial roles in vacancy dynamics.
In summary, the market’s tension stems from a mix of insecurity, regulatory gaps, and diverse owner expectations. Resolving these tensions requires practical steps that balance protections for landlords with incentives to bring vacant units into use. The conversation continues as market participants seek policies that safeguard against defaults, while encouraging renovations and improvements that unlock latent housing stock.
The region-wide perspective shows that vacancy levels are not uniform. The real estate sector recognizes that vacant homes are not simply a problem of one town or city, but a provincial pattern that requires coordinated responses. With policy adjustments and better risk management tools, Alicante could see a steadier rental market, fewer empty properties, and more homes available for residents in need.
Source notes: INE statistics on occupancy and energy use, Fotocasa regional study on vacancy and ownership structures. [Attribution: INE], [Attribution: Fotocasa]