Rental Market Pressures Across the Province
Finding an apartment for rent that is in good condition and affordable remains a near-impossible task in the province. Demand surged after curfews ended, while new housing supply did not keep pace, pushing rents higher and accelerating with inflation last year.
A challenging market created a storm where the average rental cost in the province rose by 18.6 percent over the last year, according to data from the Fotocasa portal. A typical 80-square-meter, three-bedroom apartment now commands roughly 700 euros per month, equating to about 8.73 euros per square meter. While there are noticeable variations between towns and even neighborhoods, the overall increase has been broadly confirmed by local real estate professionals and the portal itself.
In Alicante, the rise places the city among the top four for rent increases, trailing only Huelva, which saw a 30.4 percent jump in twelve months; Segovia, at 10.7 percent; and Cuenca, at 18.9 percent.
Regarding the rest of the Valencian Community, Valencia rents have climbed 13.5 percent, starting from a higher base and now averaging about 10.27 euros per square meter. Castellón rose 12.3 percent to 7.3 euros per square meter.
The root causes for rising rents across the country lie in stronger demand paired with tighter available supply. In Alicante, the demand for homes to rent grew by 35 percent compared with 2019, while the number of available apartments dropped by roughly 50 percent, according to Fotocasa.
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Local real estate firms corroborate this trend. Grupo Casamayor notes that the rental market is saturated and that new housing supply is not meeting demand, leading to a shrinking existing portfolio. Inflation adds another layer, prompting many owners to raise rents on new leases to preserve real income against rising costs.
Municipal Variations
Within the four municipalities featured in the portal’s study, the most pronounced price increase occurred in Istanbul last year, with Alicante reporting an average landlord rent of 24.6 percent higher at 9.87 euros per meter, about 790 euros for an 80-meter apartment.
Benidorm has seen rents reach around 10.52 euros per meter, up 16.1 percent from the previous year, according to the statistics, which focus on long-term rentals rather than tourist housing.
Elche shows a more modest rise, with rents up 12.3 percent over the last twelve months to about 6.57 euros per meter, while nearby Alicante city prices for long-term rentals continue to outpace national averages. Meanwhile, rental costs in Altea have risen around 5.56 euros per meter, although last month saw a slight easing in that general trend.
Nationally, the most expensive rents are found in Barcelona at roughly 15.71 euros per meter (about 1,256 euros for an 80-meter unit), followed by Gipuzkoa at 15.56 euros (approximately 1,244 euros for a similar apartment), and Madrid at 14.74 euros (roughly 1,179 euros).