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Yes, the analysis of Alicante's property market is included in our pack
Property prices in Alicante are surging dramatically, with residential properties increasing by 13-18% in the past year alone.
As we reach mid-2025, Alicante's real estate market is experiencing one of its strongest growth periods in recent history. The average price per square meter in Alicante city now stands between €2,265 and €2,477, marking a significant 40% increase over the past five years.
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Property prices in Alicante are rising rapidly, with an average increase of 13-18% year-on-year as of June 2025.
The fastest growth is occurring in traditionally affordable neighborhoods like Los Ángeles-Tómbola-San Nicolás, which saw a 27.5% price increase in just one year.
| Key Metric | Current Value (June 2025) | Year-on-Year Change |
|---|---|---|
| Average Price per m² (City) | €2,265 - €2,477 | +13% to +18.2% |
| New Build Price per m² | €2,650 | +12% |
| Most Expensive District | Playa de San Juan (€3,402/m²) | +16% |
| Fastest Growing District | Los Ángeles (€1,560/m²) | +27.5% |
| 5-Year Price Increase | +40% | CAGR: 5.5% |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What are the current average property prices in Alicante?
Property prices in Alicante city average between €2,265 and €2,477 per square meter as of June 2025.
New-build properties command a premium, averaging €2,650 per square meter in the city, while the broader Alicante province sees new builds at €2,505 per square meter. These prices represent a significant increase from just a year ago, when the average was closer to €2,000 per square meter.
The most expensive district remains Playa de San Juan-El Cabo, where prices range from €3,117 to €3,402 per square meter. In contrast, the Centro district averages €2,957 to €3,059 per square meter, while more affordable areas like Virgen del Remedio-Juan XXIII offer properties at €960 to €1,038 per square meter.
For a typical 80-square-meter apartment in Alicante city, buyers can expect to pay between €181,200 and €198,160, depending on the neighborhood and property condition. In prime coastal areas, the same size apartment could cost over €270,000.
The rental market mirrors this growth, with average monthly rents reaching €12.56 per square meter, translating to approximately €1,000 per month for an 80-square-meter apartment in central locations.
How much have property prices increased in the last year?
Residential property prices in Alicante have surged by 13% to 18.2% year-on-year, marking one of the strongest annual increases in recent memory.
This dramatic growth varies significantly by neighborhood. Los Ángeles-Tómbola-San Nicolás leads with an astounding 27.5% increase, followed by Campoamor-Carolinas-Altozano at 23.6% and Plà del Bon Repòs-La Goleta-San Antón at 22.1%. Even traditionally prime areas like Playa de San Juan and Centro have seen robust growth of 16% to 19%.
The new-build segment has performed particularly well, with prices rising 12% year-on-year across Alicante province. This growth rate significantly exceeds the national average and positions Alicante among Spain's fastest-growing property markets.
These increases represent actual transaction prices, not asking prices, indicating genuine market demand rather than speculative pricing. The consistent double-digit growth across all districts suggests a broad-based market rally rather than isolated hotspots.
It's something we develop in our Spain property pack.
Which neighborhoods are experiencing the fastest price growth?
Los Ángeles-Tómbola-San Nicolás stands out as Alicante's fastest-growing district with a remarkable 27.5% annual price increase.
This traditionally working-class area has transformed from one of the city's most affordable neighborhoods to a hotspot for property investment. Prices here have jumped from €936 per square meter in 2021 to €1,560 in 2025, representing an increase of over €600 per square meter in just four years.
| Neighborhood | Current Price (€/m²) | Annual Growth Rate | 5-Year Increase | Investment Appeal |
|---|---|---|---|---|
| Los Ángeles-Tómbola | €1,560 | +27.5% | +66% | Very High |
| Campoamor-Carolinas | €1,850 | +23.6% | +52% | High |
| Plà del Bon Repòs | €1,720 | +22.1% | +48% | High |
| Benalua-La Florida | €2,100 | +18.7% | +45% | Moderate-High |
| Playa de San Juan | €3,402 | +16% | +38% | Moderate |
The gentrification of these emerging neighborhoods is driven by young professionals and families priced out of traditional prime areas. Infrastructure improvements, new commercial developments, and proximity to city amenities make these areas increasingly attractive.
Investors seeking maximum capital appreciation are focusing on these rapidly transforming districts, where the combination of lower entry prices and high growth potential offers compelling returns.
What types of properties are seeing the biggest price increases?
New-build apartments lead the market with 12% annual price growth, reaching an average of €2,650 per square meter in Alicante city.
The strongest demand concentrates on modern two and three-bedroom apartments, particularly those with terraces, parking spaces, and energy-efficient features. Properties in emerging neighborhoods are experiencing the highest percentage increases, with some seeing values rise by over 25% annually.
Luxury coastal properties maintain steady appreciation, especially in areas like Playa de San Juan and nearby coastal towns. These properties attract international buyers willing to pay premium prices for Mediterranean lifestyle locations, driving consistent 15-20% annual increases.
Renovation projects in central historic districts offer exceptional returns, with investors reporting 30-40% value increases after modernization. The combination of central location, architectural character, and modern amenities creates highly desirable properties commanding top prices.
Studio apartments and smaller units under 60 square meters show surprisingly strong growth, driven by investor demand for rental properties and first-time buyers entering the market.
How do Alicante property prices compare to other Spanish cities?
Alicante remains significantly more affordable than Madrid and Barcelona while experiencing faster growth rates than many major Spanish cities.
At €2,265-2,477 per square meter, Alicante costs approximately 40% less than Madrid (€3,771/m²) and 25% less than Barcelona (€3,000/m²). However, Alicante's 13-18% annual growth outpaces Barcelona's 12.8% and approaches Madrid's 20.2% rate.
Compared to other Costa Blanca cities, Alicante offers a middle ground. Valencia city, at €2,271 per square meter, shows similar pricing but with higher volatility. Málaga, another popular coastal city, averages €2,700 per square meter with 21.5% annual growth.
The Balearic Islands remain Spain's most expensive region at €4,707 per square meter, nearly double Alicante's prices. This significant price differential continues to drive buyers toward mainland coastal cities like Alicante.
Within the broader Mediterranean property market, Alicante offers exceptional value compared to the French Riviera or Italian coastal cities, attracting increasing numbers of European investors seeking affordable luxury.
What's driving the current property price surge?
International buyer demand, particularly from Northern European countries, accounts for over 30% of Alicante's property transactions in 2025.
The post-pandemic shift to remote work has transformed Alicante into a hub for digital nomads and location-independent professionals. These buyers seek year-round sunshine, excellent infrastructure, and significantly lower living costs than their home countries.
Limited housing supply intensifies price pressure, with new construction starts dropping 33% year-on-year in Alicante province. Planning restrictions, environmental protections, and limited developable land near the coast constrain new supply while demand continues growing.
Spanish government policies supporting foreign investment, including streamlined golden visa programs and favorable tax treatment for EU residents, encourage international property purchases. Recent reforms improving transaction transparency and reducing bureaucracy have further boosted investor confidence.
The lifestyle appeal of Alicante—combining beaches, culture, gastronomy, and modern amenities—creates sustained demand beyond pure investment considerations. The city's international airport, high-speed rail connections, and growing expatriate community enhance its attractiveness to foreign buyers.
What are the current mortgage rates affecting the market?
Mortgage rates in Spain hover around 3.5% to 4.5% as of June 2025, following European Central Bank monetary policy adjustments.
Despite higher rates compared to the historic lows of 2020-2021, strong cash purchases by international buyers minimize the impact on Alicante's market. Approximately 40% of transactions involve cash payments, particularly from foreign investors, reducing sensitivity to rate changes.
Spanish banks offer competitive mortgage products to foreign buyers, typically financing 60-70% of purchase price for non-residents. Fixed-rate mortgages gaining popularity provide certainty in an uncertain rate environment, with 10-year fixes available around 4%.
Local buyers face affordability challenges as rising prices outpace wage growth. The combination of higher prices and increased borrowing costs extends the time needed to save for deposits and reduces purchasing power.
It's something we develop in our Spain property pack.
Are there signs of a property bubble forming?
Despite record-high prices, most experts see no immediate signs of a speculative bubble in Alicante's property market.
Unlike the 2008 crisis, current price increases stem from genuine demand rather than speculation. Foreign buyers purchasing for lifestyle reasons, limited supply, and sustainable demographic trends support current valuations. The absence of excessive leverage and speculative development differentiates today's market from previous bubbles.
However, affordability concerns grow increasingly acute for local residents. The price-to-income ratio in Alicante has reached challenging levels, with average properties costing over 10 times median household income. This disconnect between local purchasing power and property prices creates social tensions.
The rental market shows more concerning overheating signs, with vacancy rates below 2% and annual rent increases of 10-15%. The conversion of long-term rentals to tourist accommodations exacerbates supply shortages, pushing rents to unsustainable levels for local workers.
Market correction risks exist if interest rates rise further, foreign demand weakens, or regulatory changes limit short-term rentals. However, structural factors supporting demand suggest any correction would likely be moderate rather than catastrophic.
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 are the property price forecasts for 2026?
Property prices in Alicante are expected to continue rising in 2026, though at a more moderate pace of 5-8% annually.
Market analysts predict the current explosive growth will stabilize as prices reach levels that test affordability limits. The Spanish property market typically follows cyclical patterns, and after two years of exceptional gains, a period of consolidation appears likely.
New construction projects scheduled for completion in 2026-2027 should ease supply constraints somewhat. Several major developments in the pipeline will add thousands of units to the market, potentially moderating price growth in the new-build segment.
International demand remains the wildcard, with continued European buyer interest expected but potentially affected by economic conditions in origin countries. Any significant economic downturn in Northern Europe could impact the flow of foreign investment into Alicante property.
Rental yields are forecast to remain attractive at 5-6%, supporting investment demand even if capital appreciation slows. The combination of rental income and moderate price growth should maintain Alicante's appeal to property investors.
Which areas offer the best investment potential?
Emerging neighborhoods like Los Ángeles, Campoamor, and San Blas present the highest growth potential for property investors in 2025.
- Los Ángeles-Tómbola district: Still affordable at €1,560/m² with 27.5% annual growth
- San Blas area: Undergoing urban regeneration with new transport links planned
- Babel neighborhood: Close to the university with strong rental demand from students
- Playa de San Juan expansion zones: New developments offering modern amenities near the beach
- Historic center renovation properties: Character buildings with potential for luxury conversions
These areas combine lower entry prices with strong fundamentals driving future appreciation. Infrastructure improvements, demographic shifts, and changing buyer preferences position these neighborhoods for continued outperformance.
For rental investment, properties near the University of Alicante, beach areas, and well-connected central locations offer the best yields. The shortage of quality rental accommodation ensures consistent demand and rising rents.
Luxury investors should focus on beachfront properties and penthouses with sea views, where scarcity value and international demand support premium pricing. These properties typically appreciate steadily while offering lifestyle benefits.
What's the outlook for the next 10 years?
Alicante's property market is positioned for sustained long-term growth, with prices potentially doubling over the next decade.
Demographic trends strongly favor continued appreciation. The aging population in Northern Europe seeks retirement destinations with quality healthcare, favorable climate, and lower living costs—all strengths of Alicante. This structural demand should persist regardless of short-term economic fluctuations.
Climate change paradoxically benefits Alicante's property market as Northern Europeans seek escape from increasingly extreme weather. The city's Mediterranean climate, with over 300 days of sunshine annually, becomes increasingly valuable as weather patterns shift globally.
Infrastructure developments including high-speed rail expansion, airport improvements, and digital connectivity enhancements will improve Alicante's accessibility and livability. The city's commitment to sustainable development and quality of life improvements supports long-term value appreciation.
Technology sector growth, with Alicante emerging as a tech hub, diversifies the economic base beyond tourism. This economic diversification reduces market volatility and supports sustainable price growth over the coming decade.
It's something we develop in our Spain property pack.
Should you buy property in Alicante now?
The Alicante property market in mid-2025 presents a compelling but complex investment opportunity requiring careful consideration.
For lifestyle buyers seeking a Mediterranean home, current market conditions favor immediate action despite high prices. Limited supply, continued strong demand, and the lifestyle benefits of Alicante ownership support purchase decisions for those with adequate budgets.
Investment buyers should carefully analyze specific opportunities, focusing on emerging neighborhoods with strong growth potential rather than expensive established areas. The key to successful investment lies in identifying undervalued properties in improving areas before prices fully adjust.
First-time buyers face significant challenges with current prices and should consider starting with smaller properties or emerging neighborhoods. Waiting for a market correction risks being priced out entirely if growth continues as forecast.
Cash buyers and those with substantial deposits hold advantages in the current market, able to act quickly and negotiate better terms. For heavily leveraged purchases, the combination of high prices and elevated interest rates suggests more caution is warranted.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Property prices in Alicante are rising significantly, with no signs of slowing down in the immediate future.
The answer to whether property prices are going up in Alicante is definitively: Yes a lot
Sources
- Alegria Real Estate - Cost of Living in Alicante 2025 Guide
- Indomio - Alicante Real Estate Market Analysis
- El Español - Alicante Neighborhood Price Analysis
- Euro Weekly News - Costa Blanca Housing Prices Report
- Carmen Ulloa - Most Demanded Areas in Alicante 2025
- Spanish Property Insight - Alicante Market Snapshot
- Fine & Country - Spain Real Estate Market Q1 2025
- InvestRopa - Alicante Real Estate Forecasts
- Tinsa - Alicante Property Price Index
- Global Property Guide - Spain Price History