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Yes, the analysis of Alicante's property market is included in our pack
Thinking of investing in real estate in Alicante? You're not alone!
Alicante's beautiful beaches and Mediterranean allure lead people to fantasize about owning a charming beach house or a modern apartment with sea views in this Spanish city.
Would it be a good investment, though? Are property prices increasing in Alicante? How much does it cost? Is it wiser to buy property in the city center or near the beach? Are there any hidden fees? Can I get a very good rental yield? Where?
In this article, everything is sorted out for you.
The Investropa team knows this market like the back of their hand. Actually, we have condensed all our findings in a pack. Get it now.
In this article, get ready to receive valuable insights from us.
How's the real estate market in Alicante?
Are property prices booming or faltering? Instead of relying on opinions, we turn to hard data and stats for clarity
Property types
In Alicante, there are various types of properties available for sale.
These include apartments, perfect for individuals or small families seeking a convenient and low-maintenance living space.
For larger families or those who prefer more space, there are townhouses and villas offering a comfortable and spacious lifestyle.
If you're interested in a more traditional and rustic ambiance, charming fincas or country houses are also on offer.
Additionally, you can find commercial properties like shops and offices for those looking to invest in business opportunities.
Whether you seek a coastal retreat, a suburban haven, or a commercial venture, Alicante's real estate market caters to a diverse range of preferences and needs.
Should you buy or rent?
(If you're purchasing for personal use and not for renting)
If Alicante is your city of choice, you might be considering whether it's better to buy a property or opt for renting in this sunny Spanish coastal city.
Usually, buying is better than renting in Alicante due to its desirable climate, attractive beaches, and low cost of living.
However, if you prefer flexibility, go for renting.
Property prices in Alicante
On average, according to the last data from Ministerio de Fomento, purchasing a property in Alicante would cost you around $3,500 per square meter.
Naturally, things are quite spread out. The value of a square meter for an apartment in Alicante might differ from a beachfront property in Benidorm. We actually offer a more in-depth analysis in our pack for buying property in Alicante and in Spain.
To help you understand better, it means that, instead of buying an apartment in Paris or London, you can afford 4 properties in Alicante.
Also, housing prices in Alicante are 59% cheaper than in Ibiza.
The most expensive neighbourhoods in Alicante are probably El Campello, San Juan de Alicante and El Altet, while the cheapest are Benidorm, Torrevieja and Santa Pola.
Trends
First and foremost, we have to acknowledge that Spain offers, today, a lot of stability to investors. The last Fragile State Index that has been reported for this place is 44.4.
Remember this important point when thinking about whether it's a good idea to buy a property in Alicante.
Also, according to the International Monetary Fund (IMF), Spain's economy is expected to soar by 8.4% in the coming 5 years, resulting in an average GDP growth rate of 1.7%.
If you're about to invest in real estate in Alicante it's a good thing because an expanding economy usually means people earn more, so they can buy property for themselves or as an investment, causing property demand (and then prices) to increase.
Also, in Spain, the average GDP per capita has changed by -1.1% over the last 5 years. It's a bit concerning.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Spain right now.
Buying property in Alicante
Buying real estate in Alicante can be a challenging process due to the difficulty of obtaining reliable and up-to-date information. That's why we have created the pack to buy property in Alicante and in Spain.
Buying process
In our pack, we've laid out all the steps involved in the buying process, including the required documents, taxes to be paid, and guidance on finding properties.
Now, we're giving you a more straightforward version to help you grasp the information more easily.
This is the step-by-step process to purchase a property in Alicante:
- Research the Alicante property market, local regulations, and financing options.
- Obtain a Spanish bank account and NIE (foreigner identification number).
- Engage a licensed real estate agent familiar with the Alicante region.
- View properties that match your criteria and preferences.
- Once you find a property, make a written offer through your agent.
- If the seller accepts, sign a "Contrato de Arras" (Reservation Agreement) and pay a deposit.
- Hire a reputable solicitor (abogado) to conduct legal checks on the property.
- Apply for a "Nota Simple" (property registry report) to verify ownership and debts.
- Draft and sign the "Escritura de Compraventa" (deed of sale) with the notary.
- Pay the agreed-upon purchase price, taxes, and notary fees at the signing.
- Register the property in the "Registro de la Propiedad" (property registry).
- After completion, update utility contracts and payments to your name.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Spain.
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Where to find a property
Here is a list of websites where you can find properties in Alicante:
- Idealista - A real estate platform in Spain, offering properties for sale and rent, holiday homes, mortgage services, and property-related resources.
- Fotocasa - A property portal offering homes for sale and rent in various cities across Spain, along with mortgage and insurance services.
- Habitaclia - A real estate platform offering properties for sale, rent, and new builds in various regions of Spain.
- Pisos - A real estate portal in Spain, offering properties for sale and rent, including houses, flats, commercial spaces, and more.
- YaEncontre - A real estate portal offering a wide range of properties for sale and rent across various regions in Spain.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Spain.
What you can get
As mentioned before, the average price per sqm in Alicante is $3,500. A one-bedroom property with 60 square meters would be priced at around $210,000, and a two-bedroom with 85 square meters would cost about $298,000.
Of course, the price of properties can be influenced by their qualities and the area they're in.
Top neighborhoods in Alicante will come with higher price tags. A condominium in Playa San Juan might be around $400,000, while a property in El Cabo could cost about $370,000.
Yet, there are places that are easier on the wallet. You might find an apartment in Los Angeles for $120,000 or an apartment in Virgen del Remedio that's only $90,000.
We give a more detailed pricing list in our full pack for buying property in Spain.
Common pitfalls
Here are the main pitfalls specific to buying a property in Alicante, Spain:
- NIE application delays: Obtaining a foreigner's tax identification number (NIE) can be time-consuming and affect the buying process.
- Coastal development restrictions: Strict regulations near the coast may limit construction and renovation options.
- Tourist rental regulations: Short-term rental laws may impact your ability to generate income from the property.
- Resale permit requirements: Historical properties may need a permit for resale, causing delays and complications.
- Encroaching protected areas: Some properties might be close to protected natural reserves, limiting future expansion.
- Unpaid community fees: Previous owners' debts could become your responsibility within a homeowners' association.
- Outdated cadastral records: Discrepancies in property records can lead to legal disputes and boundary issues.
- Cultural heritage limitations: Historical properties may have restrictions on renovations to preserve their heritage.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Spain Property Pack
Living in Alicante
Living in Alicante is a great experience, offering a vibrant city life with beautiful beaches and stunning mountain views.
Cost of living
The cost of living in Alicante is generally quite affordable. The city has a good selection of housing options and a wide variety of restaurants, supermarkets, and amenities that make it an attractive place to live.
Here are some examples to better understand the cost of living in Alicante:
- Monthly rent for a cozy apartment in the vibrant Old Town (Barrio de la Santa Cruz): €800-€1,500.
- A glass of local Spanish wine at a tapas bar: €2-€5.
- Monthly transportation pass for buses and trams: €30-€50.
- A plate of traditional Spanish paella at a local restaurant: €10-€15.
- Admission to the Archaeological Museum of Alicante (MARQ): €3-€6.
- Monthly membership at a fitness studio with beach views: €40-€80.
- Fresh produce from the Mercado Central for a week: €20-€40.
- A bottle of local Spanish beer from a grocery store: €1-€2.
Neighbourhoods
We want to show information in an easy-to-understand way. So, we made a summary table to show the different areas in Alicante. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Barrio Santa Cruz | Barrio Santa Cruz is a charming historic neighborhood with narrow streets and whitewashed houses, located in the heart of Alicante. It offers a unique and picturesque ambiance with plenty of traditional restaurants and cozy cafes. | Rich cultural heritage, ideal for history lovers and tourists seeking an authentic experience. Close proximity to major attractions and the city center. | Narrow streets can be challenging for vehicles and parking. High tourist traffic may lead to crowding during peak seasons. |
El Pla del Bon Repós | El Pla del Bon Repós is a modern residential neighborhood with spacious apartments and green areas. It is located close to shopping centers and has excellent public transport connections. | Quiet and family-friendly atmosphere, great amenities, and easy access to public transportation. Close to schools and parks, making it ideal for families. | Less cultural charm compared to historic neighborhoods. Limited nightlife and entertainment options. |
San Blas-Santo Domingo | San Blas-Santo Domingo is a vibrant and diverse neighborhood known for its lively atmosphere, bustling markets, and multicultural vibe. It is home to various shops, restaurants, and community events. | Rich cultural diversity and a wide array of international cuisine. Affordable housing options and a strong sense of community. | Some areas may have higher crime rates. Traffic congestion during busy hours. |
Ensanche-Diputación | Ensanche-Diputación is a central and well-connected neighborhood with a mix of residential and commercial areas. It features wide avenues, shops, and modern architecture. | Centrally located with easy access to public transport and major roads. Good shopping and dining options. | Can be busy and noisy due to high foot and vehicle traffic. Limited green spaces. |
Altozano-Conde Lumiares | Altozano-Conde Lumiares is a lively and bustling neighborhood with a mix of residential and commercial areas. It has a vibrant nightlife scene and numerous restaurants. | Exciting nightlife with bars and clubs. Diverse dining options and proximity to the city center. | Noise and potential for disturbances during late hours. Limited parking options. |
San Gabriel | San Gabriel is a coastal neighborhood known for its beaches and seaside promenade. It offers a relaxed and beach-town atmosphere. | Beautiful beaches and coastal views. Peaceful and ideal for beach lovers. | Relatively far from the city center and may have limited public transport connections. Can be crowded with tourists during peak seasons. |
Playa de San Juan | Playa de San Juan is a popular beach area and one of the largest neighborhoods in Alicante. It offers a wide stretch of sandy beaches, a variety of water sports activities, and a bustling beachfront. | Extensive and beautiful beaches. Plenty of restaurants, bars, and beach clubs. Well-connected by public transport. | High tourist traffic and crowded during peak seasons. Some areas may feel less residential and more tourist-oriented. |
Life in Alicante
Alicante is a vibrant economic hub in the south east of Spain, with a diverse range of industries including tourism, manufacturing, agriculture and services. The city has seen strong growth in recent years, driven by increasing foreign investment and a booming property market.
What expats usually like the most in Alicante is the city's Mediterranean climate and stunning beaches. They also appreciate the vibrant nightlife and the vast array of cultural activities available.
A good point for a property investor - Alicante has a modern light rail system called TRAM d'Alacant, which serves the city and its surrounding areas.
Access to healthcare in Alicante is generally good, with a variety of public and private hospitals and clinics providing quality medical care.
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Renting out in Alicante
For those aiming to buy property solely for renting out and earning income.
Long-term
Tenant Profiles in Alicante
According to the data reported by Wikipedia, the home ownership rate in Spain is 76%, which is average.
It means that, if you decide to buy and rent out in Alicante, there will be a good number of people who can become your potential tenants.
If you decide to buy and rent out to long-term tenants, you should target young professionals, students, and families looking for a place to stay in Alicante. For short-term tenants, you should look for tourists and visitors who are looking for a place to stay for a few days or weeks.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in Playa del Postiguet | Beachgoers, tourists | Proximity to the beach, leisure | $600 - $1,200 |
Studio in El Barrio | Students, artists | Cultural scene, affordability | $400 - $900 |
2-Bedroom Apartment in Albufereta | Families, professionals | Quiet area, proximity to the beach | $800 - $1,500 |
Villa in San Juan | Expats, retirees | Suburban living, golf courses | $1,200 - $2,500 |
Apartment in El Pla | Young professionals | Urban convenience, shops | $500 - $1,000 |
1-Bedroom Flat in Ensanche-Diputación | Working singles, couples | City center, public transport | $600 - $1,200 |
Townhouse in San Blas | Family-oriented | Community feel, schools | $800 - $1,800 |
Rental yields
Nowadays, the rental yields you get in Alicante are between 5% and 7%. There are some opportunities. So you know, a "good" rental yield is above 7%.
The best rental yields in Alicante are found in areas close to the beach, such as El Campello, Cabo de las Huertas, and El Altet. These areas are popular with tourists due to their proximity to the beach and other attractions, and thus there is a high demand for rental properties in these areas.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Finally, be aware that rental incomes in Alicante are taxed at 19%, which is rather good.
Short-term
You could also decide to rent short-term to holidaymakers, students, and business travellers visiting Alicante. Additionally, you could rent to expats and digital nomads looking for a temporary residence in the city.
If you decide to go with that option, look for properties in the city center, as well as in the beach areas of El Postiguet, San Juan and La Albufereta. These areas are popular among tourists and offer great rental potential.
Currently, there are approximately 4,000 active Airbnb listings in Alicante, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $106.
You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Alicante can make around $1500 per month. Also, the average occupancy rate is estimated at 71%.
Is it worth buying real estate in Alicante then?
Buying a property in Alicante can be a fantastic investment if you're looking for a slice of Mediterranean paradise without breaking the bank. The city's property market offers stability, and with Spain's growing economy, there's potential for property values to rise. Compared to expensive European cities like Paris or London, Alicante offers a bargain, where you can get more for your money.
Whether you want a cozy apartment, a spacious villa, or even a business property, Alicante's diverse real estate options cater to various tastes and needs. However, it's not all sunshine and beaches. The process of buying property in Alicante can be challenging due to the maze of local regulations and obtaining accurate information. The property's location significantly affects its price, and there are potential hurdles like delays in obtaining a foreigner's tax ID and restrictions on coastal development.
Rental income is an option, with good potential for long-term tenants, but you might not see sky-high yields. Short-term rentals to tourists are possible, but it requires navigating local regulations and taxes. In the end, Alicante is a gem, but it's essential to do your homework and seek professional advice to ensure your property investment shines.
Make sure you understand the real estate market in Alicante
Don't rush into buying the wrong property in Spain. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.