Authored by the expert who managed and guided the team behind the Spain Property Pack
Yes, the analysis of Alicante's property market is included in our pack
If you're curious about property prices in Alicante right now, you're in the right place.
We track the Alicante housing market closely and update this blog post regularly so you always get the freshest numbers.
Below, we cover current prices, recent trends, and what experts expect for 2026 and beyond.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Alicante.
Insights
- Alicante property prices have nearly doubled in 10 years, rising from around 1,250 euros per square meter in 2016 to approximately 2,508 euros per square meter in January 2026.
- Foreign buyers account for over 40% of property transactions in Alicante province, one of the highest rates in Spain, which keeps demand consistently strong regardless of local economic conditions.
- The price gap between Alicante's most expensive district (Playa de San Juan at 3,585 euros per square meter) and its cheapest (Virgen del Remedio at around 1,200 euros per square meter) is nearly threefold.
- Alicante-Elche airport handled record passenger numbers in 2024, reinforcing the city's appeal to international buyers and supporting continued demand for coastal properties.
- Rental yields in Alicante average around 5.5% gross, making it competitive for buy-to-let investors compared to other Spanish coastal cities.
- The 12-month Euribor dropped from 3.6% in early 2024 to around 2.3% by December 2025, significantly improving mortgage affordability for Alicante buyers.
- Emerging neighborhoods like San Blas-PAU and Villafranqueza showed growth rates above 22% in 2025, outperforming the city average by a wide margin.
- New housing construction in Alicante remains constrained, with completions down nearly 8% in some segments despite rising building permits, which keeps supply tight.
What are the current property price trends in Alicante as of 2026?
What is the average house price in Alicante as of 2026?
As of early 2026, the estimated average house price in Alicante city is approximately 240,000 euros (around $260,000 or £205,000), based on typical homes of about 95 square meters.
To put this in context, the average price per square meter for residential properties in Alicante is around 2,508 euros ($2,710 or £2,135), which places Alicante in the mid-to-upper range among Spanish coastal cities.
For most buyers in Alicante, the realistic price range covering roughly 80% of property purchases falls between 140,000 euros and 400,000 euros ($151,000 to $432,000), depending on the neighborhood, property size, and condition.
How much have property prices increased in Alicante over the past 12 months?
Property prices in Alicante city increased by approximately 10.7% over the past 12 months (December 2024 to December 2025), while Alicante province saw an even stronger 14.4% annual growth.
Across different property types in Alicante, the realistic range of price increases varied from around 8% for older apartments in less central areas to over 15% for well-located coastal properties and new-build developments.
The single most significant factor driving this price movement in Alicante has been the combination of strong foreign buyer demand (accounting for over 40% of purchases) and persistently limited housing supply, which created intense competition for available properties.
Which neighborhoods have the fastest rising property prices in Alicante as of 2026?
As of early 2026, the top three neighborhoods with the fastest rising property prices in Alicante are Villafranqueza-Santa Faz-Monegre, Virgen del Remedio-Juan XXIII, and San Blas-PAU.
These neighborhoods recorded impressive annual price growth of 27.8%, 27.1%, and 22.6% respectively, significantly outpacing the citywide average of around 10.7%.
The main demand driver behind this growth is the spillover effect from buyers getting priced out of premium coastal areas and seeking better value with more space, combined with new development activity in districts like San Blas-PAU.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Alicante.
We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which property types are increasing faster in value in Alicante as of 2026?
As of early 2026, the ranking of property types by appreciation rate in Alicante places resale apartments first, followed by townhouses, new-build apartments, and finally detached houses or villas.
Resale apartments in good locations have been appreciating at approximately 11% to 14% annually in Alicante, driven by their dominant share of market inventory and fast transaction turnover.
The main reason resale apartments are outperforming is simply supply and demand: they represent over 70% of Alicante's housing stock, so when demand surges, prices respond quickly across this large segment.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much should you pay for a house in Alicante?
- How much should you pay for an apartment in Alicante?
What is driving property prices up or down in Alicante as of 2026?
As of early 2026, the top three factors driving property prices in Alicante are strong international buyer demand, limited housing supply, and improved mortgage affordability following Euribor declines.
The single factor with the strongest upward pressure on Alicante property prices is the persistent shortage of available homes for sale, as new construction completions have not kept pace with demand despite increased building permits.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Alicante here.
Get fresh and reliable information about the market in Alicante
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What is the property price forecast for Alicante in 2026?
How much are property prices expected to increase in Alicante in 2026?
As of early 2026, property prices in Alicante are expected to increase by approximately 6% to 9% over the course of the year, with coastal districts likely at the higher end of that range.
The realistic range of forecasts from different analysts varies from a conservative 4% to an optimistic 10%, depending on assumptions about interest rates, foreign demand, and new housing supply.
The main assumption underlying most price increase forecasts for Alicante is that housing supply will remain tight while international and domestic demand stays strong, supported by stable financing conditions.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Alicante.
Which neighborhoods will see the highest price growth in Alicante in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Alicante include San Blas-PAU, Villafranqueza-Santa Faz-Monegre, Campoamor-Carolinas-Altozano, and Benalua-La Florida-Babel-San Gabriel.
These districts are projected to achieve price growth between 10% and 15% in 2026, outperforming the citywide average thanks to their combination of relative affordability and improving amenities.
The primary catalyst driving expected growth in these neighborhoods is buyer spillover from expensive coastal zones, as families and investors seek better value without sacrificing connectivity to city services.
One emerging neighborhood that could surprise with higher-than-expected growth is Pla del Bon Repos-La Goleta-San Anton, which offers central location advantages at prices still below the city average.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Alicante.
What property types will appreciate the most in Alicante in 2026?
As of early 2026, resale apartments in good condition are expected to appreciate the most in Alicante, particularly two and three-bedroom units in well-connected districts.
The projected appreciation for top-performing resale apartments in Alicante is around 8% to 12% for 2026, with properties in emerging neighborhoods potentially reaching the higher end.
The main demand trend driving appreciation for apartments is the sheer volume of buyers competing for limited stock, as apartments make up over 70% of Alicante's housing market and suit both local families and international investors.
Detached villas and luxury coastal properties are expected to underperform the broader market in percentage terms, as their higher price points limit the buyer pool and make them more sensitive to interest rate changes.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How will interest rates affect property prices in Alicante in 2026?
As of early 2026, the stabilization of interest rates at lower levels compared to 2023 is supporting property prices in Alicante by improving buyer affordability and maintaining transaction momentum.
The current 12-month Euribor (Spain's main mortgage benchmark) stands at approximately 2.27%, down significantly from its 2023 peak above 4%, and the ECB's policy direction suggests rates may hold steady or drift slightly lower in 2026.
A 1% change in interest rates typically affects monthly mortgage payments in Alicante by around 80 to 100 euros per 100,000 euros borrowed, which can shift buyer budgets by roughly 8% to 10% and influence price dynamics accordingly.
You can also read our latest update about mortgage and interest rates in Spain.
What are the biggest risks for property prices in Alicante in 2026?
As of early 2026, the three biggest risks for property prices in Alicante are an unexpected rise in interest rates, a significant economic slowdown in Northern Europe reducing foreign buyer demand, and regulatory changes affecting short-term rentals.
Among these risks, affordability constraints reaching a tipping point has the highest probability of materializing in 2026, as local incomes have not kept pace with property price growth and could eventually slow demand from Spanish buyers.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Alicante.
Is it a good time to buy a rental property in Alicante in 2026?
As of early 2026, buying a rental property in Alicante can be a reasonable investment if you focus on well-located properties in emerging districts where both capital growth and rental demand are strong.
The strongest argument in favor of buying now is that gross rental yields in Alicante remain attractive at around 5% to 6%, while limited supply and strong tenant demand support consistent occupancy rates.
The strongest argument for waiting is that prices have risen sharply over recent years, and a period of consolidation or slower growth could offer better entry points for patient investors.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Alicante.
You'll also find a dedicated document about this specific question in our pack about real estate in Alicante.
Buying real estate in Alicante can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Alicante?
What is the 5-year property price forecast for Alicante as of 2026?
As of early 2026, cumulative property price growth in Alicante over the next 5 years is expected to reach approximately 25% to 40%, assuming no major economic shocks disrupt current trends.
The range of 5-year forecasts spans from a conservative scenario of around 20% total growth (if affordability constraints bite harder) to an optimistic 45% (if foreign demand accelerates and supply remains tight).
This translates to a projected average annual appreciation rate of roughly 5% to 7% per year over the next 5 years in Alicante, though growth will likely be uneven with some years stronger than others.
The key assumption most forecasters rely on is that Alicante's structural demand drivers, particularly international buyer interest and limited new construction, will persist throughout the forecast period.
Which areas in Alicante will have the best price growth over the next 5 years?
The top three areas in Alicante expected to have the best price growth over the next 5 years are San Blas-PAU, Benalua-La Florida-Babel-San Gabriel, and Villafranqueza-Santa Faz-Monegre, all of which combine relative affordability with improving infrastructure.
These top-performing areas could see 5-year cumulative price growth of 35% to 50%, meaningfully above the citywide average, driven by ongoing development and buyer spillover from premium zones.
This aligns with our shorter-term forecast but with one key difference: over 5 years, neighborhoods like Pla del Bon Repos-La Goleta-San Anton gain importance as gentrification effects take hold more fully.
The currently undervalued area with the best potential for outperformance over 5 years is Virgen del Remedio-Juan XXIII, where prices remain well below city average but recent growth rates suggest strong momentum building.
What property type will give the best return in Alicante over 5 years as of 2026?
As of early 2026, well-located two to three-bedroom apartments in emerging districts are expected to give the best total return over 5 years in Alicante, combining solid appreciation with consistent rental income potential.
The projected 5-year total return for this property type in Alicante, including both price appreciation (around 30% to 40%) and rental income (roughly 4.5% to 5.5% gross yield annually), could reach 55% to 70% cumulative.
The main structural trend favoring apartments is Alicante's housing composition (over 70% apartments) combined with strong demand from both families seeking primary residences and investors targeting the rental market.
For buyers prioritizing lower risk over maximum returns, family-sized townhouses in established residential districts offer the best balance, with steady appreciation and less volatility than prime coastal properties.
How will new infrastructure projects affect property prices in Alicante over 5 years?
The top three infrastructure factors expected to impact property prices in Alicante over the next 5 years are continued airport capacity expansion, urban transit improvements, and coastal promenade and public space upgrades.
Properties near completed or planned infrastructure improvements in Alicante typically command a price premium of 5% to 15% compared to similar properties without such advantages, based on historical patterns in Spanish coastal cities.
The neighborhoods most likely to benefit from infrastructure developments include San Blas-PAU (new residential development), areas near the expanded Alicante-Elche airport connections, and coastal zones benefiting from promenade improvements.
How will population growth and other factors impact property values in Alicante in 5 years?
Alicante's population is projected to grow at roughly 0.5% to 1% annually, and combined with household formation trends, this should add approximately 3,000 to 5,000 new housing demand units per year, supporting property values over the next 5 years.
The demographic shift with the strongest influence on Alicante property demand is the continued inflow of Northern European retirees and remote workers seeking better climate and lifestyle, which sustains premium prices in coastal and well-serviced areas.
Migration patterns, both domestic (from Madrid and other Spanish cities) and international (mainly from the UK, Germany, Belgium, and Scandinavia), are expected to account for the majority of net housing demand growth in Alicante over the next 5 years.
Two to three-bedroom apartments in well-connected urban districts and coastal townhouses in areas popular with international buyers will benefit most from these demographic trends in Alicante.
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What is the 10 year property price outlook in Alicante?
What is the 10-year property price prediction for Alicante as of 2026?
As of early 2026, cumulative property price growth in Alicante over the next 10 years is expected to reach approximately 60% to 90%, assuming the market follows a typical cycle pattern with periods of faster and slower growth.
The range of 10-year forecasts spans from a conservative 45% (if sustained affordability pressures or economic disruptions occur) to an optimistic 100% or more (if supply constraints persist and international demand strengthens further).
This translates to a projected average annual appreciation rate of roughly 5% to 6.5% per year over the next decade in Alicante, though individual years will vary significantly around this average.
The biggest uncertainty factor in making 10-year property price predictions for Alicante is the future trajectory of interest rates, as prolonged higher rates would dampen demand while sustained lower rates could accelerate price growth beyond current expectations.
What long-term economic factors will shape property prices in Alicante?
The top three long-term economic factors that will shape property prices in Alicante over the next decade are interest rate policy and financing conditions, housing supply delivery capacity, and the strength of tourism and international migration flows.
The single factor likely to have the most positive impact on Alicante property values is continued strong international demand, as the city's airport connectivity, climate, and lifestyle appeal position it well to capture European buyer interest for years to come.
The single factor posing the greatest structural risk is a prolonged period of high interest rates, which would squeeze affordability for both local and international buyers and could trigger a market correction after years of strong gains.
You'll also find a much more detailed analysis in our pack about real estate in Alicante.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Alicante, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| INE (Spain) - House Price Index | Spain's official statistics office provides the most reliable national price trend data. | We used it to anchor how fast prices have been rising nationally and by type. We then compared Alicante's local growth against this official baseline. |
| Eurostat - House Price Index | Eurostat standardizes housing statistics across Europe for consistent comparisons. | We used it to verify that Spain's housing trends fit the broader EU pattern. We also relied on it for methodology guidance when interpreting index-based growth. |
| Banco de Espana - Interest Rate Statistics | Spain's central bank is the reference source for official rate indicators. | We used it to establish the mortgage rate environment as of the first half of 2026. We then connected rate levels to affordability impacts in Alicante. |
| ECB - Monetary Policy Communications | The European Central Bank's official policy documents are primary sources on rate direction. | We used it to understand the interest rate outlook for 2026. We then assessed how stable or falling rates could affect buyer budgets. |
| Banco de Espana - Housing Market Research | Central bank research documents provide deep analysis of Spanish housing cycles. | We used it to understand what typically drives Spanish housing markets. We then applied those drivers to Alicante's specific situation. |
| MIVAU - Housing Transactions Statistics | The Spanish housing ministry provides official transaction volume data. | We used it as the backbone for understanding market activity levels. We combined it with price sources for a complete market picture. |
| MIVAU - Foreign Transactions Module | Official government statistics on foreign buyer activity by province. | We used it to quantify Alicante's exposure to international demand. We then explained how foreign buyers affect local price dynamics. |
| Colegio de Registradores - Price Reports | Property registry data reflects actual transaction prices, not just listings. | We used it to verify price direction with real sales data. We also used it to understand how the market felt entering 2026. |
| Idealista - Alicante City Price Reports | Spain's largest property portal with granular district-level data. | We used it for Alicante's price per square meter and neighborhood breakdowns. We treated it as asking prices and verified direction with registry sources. |
| Idealista - Alicante Rent Reports | Consistent monthly rent tracking at local scale is rare and valuable. | We used it to estimate rental yields and tenant demand. We combined rents with sale prices to calculate investment returns. |
| Tinsa - IMIE Local Markets | Long-standing Spanish valuation firm with documented index methodology. | We used it as a third angle on price momentum. We validated whether Alicante's growth fits broader coastal market patterns. |
| BBVA Research - Observatorio Inmobiliario | Major bank research with transparent assumptions and housing forecasts. | We used it for credible 2026 baseline forecasts for Spain. We then adjusted for Alicante's stronger international demand. |
| CaixaBank Research - Real Estate Analysis | Frequent, data-driven housing analysis tied to official series. | We used it as a second forecast lens to cross-check BBVA's view. We translated national messages into Alicante-specific implications. |
| Aena - Alicante-Elche Airport Statistics | Official airport traffic data is directly relevant to tourism and buyer connectivity. | We used it to explain why Alicante attracts international buyers. We linked passenger growth to housing demand in coastal districts. |
| INE - Alicante Municipal Population | Official population counts are essential for understanding structural demand. | We used it to ground the demographic side of housing demand. We combined it with supply data to explain ongoing price pressure. |
| Global Property Guide - Spain Analysis | Independent research providing rental yield comparisons across cities. | We used it to benchmark Alicante's rental yields against other Spanish markets. We verified our own yield calculations against their estimates. |
Get the full checklist for your due diligence in Alicante
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
If you want to go deeper, you can read the following: