Alicante ranks second in popularity among foreign investors. Many people buy apartments and villas here. According to the College of Real Estate Agents (API) in the province of Alicante, in 2023, almost 43% of real estate transactions were made using foreign capital.

Forbes named Alicante the second best city in the world to live in in 2023. Another reason to buy apartments in Alicante is the population growth of almost 2.5% per year. Thus, if you do not plan to move to Spain, you can easily rent out the property to earn additional income.

The Demand For Real Estate in Alicante

The API estimates that real estate sales in Spain in 2023 decreased by 7.8%. If we also take into account the data for 2021 and 2022, the market decline will be more than 16%.

Idealista, one of Spain’s real estate agencies, claims to have sold about 600,000 properties in the whole of 2023, which is 9% less than a year earlier. Most of the buyers were focused on the secondary market. their share was 82%.

Despite the sad picture for Spain as a whole, the demand for real estate in Alicante remained stable. This region is second only to Madrid and Barcelona in terms of the number of registered transactions.

Investors are still in demand for apartments and villas in Alicante. There are several reasons for this:

  • developed infrastructure;
  • proximity to the sea;
  • the tourist attraction of the region;
  • the value of real estate is actively growing here;
  • the purchased object can be easily resold in the future.

There are many properties on the primary and secondary market in Alicante, so you can choose an apartment or villa according to your financial capabilities and needs.

The Cost of Real Estate in Alicante

You can rely on different sources when estimating the cost of apartments and villas in Alicante. We use API data because it is an official structure in Spain that is closely related to real estate. The Board informs that in the fall of 2023, the average cost of housing was 1,974 euros per square meter. There is also information that the price in new buildings was 2,148 euros per square meter, and in the secondary market – 1,935 euros.

We also compared information about price dynamics in different sources. They differ significantly from each other, but everywhere it is indicated that stable growth is observed. The largest increase was recorded by Indomito, which indicated that the price increase in January 2024 was 16.25%.

If we talk about the annual price increase in the secondary market, the API reports that this figure was 8.1% per square meter. If we talk about the average price increase, then in Alicante it was 11%. This is one of the highest rates in all of Spain.

Forecasts

Experts from the Spanish bank BBVA predict that property prices will rise slightly, rising by about 3%. If we adjust for inflation, there will be a slight decline. This is caused by the following:

  • high mortgage interest rates in Spain, which significantly limits the real estate market in growth;
  • Many foreign investors have focused on Asian destinations (Bali, Vietnam, Thailand);
  • a decrease in the tourist flow due to the geopolitical situation in the world.

Despite the declining profitability of real estate in Alicante, it is advisable to buy apartments and villas in this region now. The fact is that there are quite a lot of offers on the market. Due to the high mortgage interest rates, local residents will be less likely to make real estate transactions, so demand will fall this year. As a result, sellers will be more willing to make concessions during price negotiations.