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Yes, the analysis of Alicante's property market is included in our pack
Thinking about buying a 3-bedroom apartment in the El Barrio district of Alicante? It’s a vibrant area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Playa de San Juan or Cabo de las Huertas where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Alicante Property Pack.
Will property prices increase in Alicante in 2025?
Yes, property prices in Alicante are expected to rise in 2025, driven by a combination of high demand and favorable economic conditions.
Backed by our fresh, in-depth market analysis, we’re confident that Alicante remains an attractive destination for both domestic and international investors.
While there are some economic challenges like inflation and potential interest rate fluctuations, the main drivers behind Alicante’s price growth remain strong.
The region's appeal as a tourist destination and a desirable place to live continues to attract buyers, ensuring that demand remains robust.
Signals pointing to a property price increase in Alicante
Here are some factors suggesting prices could increase:
Alicante's popularity as a tourist destination is expected to grow, leading to increased demand for holiday homes and rental properties, which will likely drive up property prices.
The ongoing development of infrastructure projects, such as improved transportation links and amenities, is set to enhance the region's appeal, potentially increasing property values.
Alicante's climate and lifestyle continue to attract retirees and expatriates, contributing to sustained demand for properties in the area.
The Spanish government's incentives for foreign property buyers, such as the Golden Visa program, are expected to continue attracting international investors to Alicante.
The limited availability of land for new developments in prime areas of Alicante is likely to constrain supply, pushing up property prices as demand remains strong.
Alicante's growing reputation as a hub for digital nomads and remote workers is expected to boost demand for residential properties, particularly in urban areas.
Signals pointing to a property price decrease in Alicante
Here are some factors suggesting prices could fall:
Economic uncertainties, such as potential fluctuations in interest rates, could impact buyer confidence and reduce demand for properties.
Rising inflation and living costs may affect the purchasing power of potential buyers, particularly those in the middle-income bracket.
Any significant changes in government policies or regulations affecting property ownership or taxation could potentially dampen investor interest in the region.
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If property prices go up in Alicante, how much would they increase by?
If real estate prices in Alicante were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.
Typically, real estate in growing markets like Alicante appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in the Old Town for 250,000 euros today, don't be surprised if it's priced between 257,500 and 267,500 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Alicante real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Beachfront Apartment (60 sqm / 646 sqft) | €300,000 | €309,000 | €315,000 | €321,000 |
| Modern Apartment (75 sqm / 807 sqft) | €400,000 | €412,000 | €420,000 | €428,000 |
| Luxury Villa (150 sqm / 1,615 sqft) | €1,000,000 | €1,030,000 | €1,050,000 | €1,070,000 |
| Studio (30 sqm / 323 sqft) | €150,000 | €154,500 | €157,500 | €160,500 |
| Loft (80 sqm / 861 sqft) | €500,000 | €515,000 | €525,000 | €535,000 |
| Townhouse (120 sqm / 1,292 sqft) | €600,000 | €618,000 | €630,000 | €642,000 |
| Investment Property (50 sqm / 538 sqft) | €200,000 | €206,000 | €210,000 | €214,000 |
Everything you need to know is included in our Property Pack for Alicante
If real estate prices go up in Alicante, which areas are likely to see the biggest increases?
Today, people who want to move to Alicante are looking for a blend of traditional Spanish charm and modern amenities, which El Barrio offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Raval Roig has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Alicante market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| El Barrio | High | Recent development of boutique hotels and its increasing appeal to international tourists as travel normalizes post-pandemic, driving demand. |
| Playa de San Juan | High | Expected rise due to limited beachfront properties, upcoming luxury apartment projects, and growing demand for coastal living. |
| Raval Roig | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Benalúa | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Vistahermosa | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Albufereta | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Carolinas Altas | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Centro | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Gran Vía | Medium-High | Its proximity to the city center, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| San Blas | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Cabo de las Huertas | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Tabarca Island | High | Upcoming restoration projects and high-profile cultural initiatives are driving a renewed focus on this unique, historic location. |
-The best areas to buy a property in Alicante
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Alicante?
In 2025, Alicante real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Alicante are seeing increased interest. Proximity to the beautiful Costa Blanca beaches and quality schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In a city like Alicante, with its sunny climate, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Alicante's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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