Is it worth it buying property in Alicante in 2025?

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

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INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Alicante. If you'd like to learn more about us, you can check our presentation page.

What types of properties are available in Alicante in 2025?

Alicante offers a comprehensive range of property types in 2025, from modern apartments to luxury villas.

Apartments represent the largest segment, ranging from compact studios in the city center to luxury penthouses along the coast. Many new developments feature energy-efficient designs, smart home technology, and sea views, with prices varying significantly based on location and amenities.

Villas are available throughout the province, from modest inland properties requiring renovation to ultra-luxurious coastal homes with private pools and gardens. Popular villa locations include Moraira, Altea, and Javea, where properties command premium prices due to exclusivity and sea views.

Townhouses typically offer 2-3 stories with communal facilities, appealing to families seeking more space than apartments but with lower maintenance than villas. These are common in both urban and suburban developments across Alicante.

Country houses (fincas) attract buyers seeking privacy and larger plots, often requiring renovation but offering significant customization potential at more affordable prices than coastal properties.

Which areas in Alicante offer the best value for property investment?

How much does property cost in Alicante right now and what are the price trends?

As of June 2025, the average property price in Alicante city stands at €2,477 per square meter, representing an 18.9% increase from 2024.

Coastal and city center areas command the highest prices, with Playa de San Juan averaging €3,117 per m² and Centro at €2,957 per m². These premium locations have seen consistent growth due to limited supply and high international demand.

More affordable areas like Virgen del Remedio average €960 per m², while mid-range neighborhoods such as Los Ángeles and Campoamor range from €1,449-€1,602 per m². These areas offer better value for first-time buyers and investors seeking entry-level opportunities.

Property prices have risen consistently over the past three years, with 12-18% annual growth since 2023. The luxury market has shown particularly strong performance, driven by international buyers and infrastructure investments in coastal areas.

Forecasts for the remainder of 2025 predict continued growth of 3-7%, with coastal and urban areas expected to outperform suburban markets due to sustained demand and supply constraints.

Is it better to buy or rent property in Alicante in 2025?

Buying property in Alicante is generally more attractive than renting for long-term residents and investors in 2025.

Purchase advantages include steady capital appreciation (5-7% annually in prime areas), strong rental yields for investors (5-6% first-year returns), and relatively stable mortgage rates around 3.5-4%. Property ownership also provides hedge against inflation and rising rental costs.

Rental costs have surged significantly, with average rates at €12.56 per m² monthly (up 10.4% from 2024). A one-bedroom city center apartment rents for €850-€1,000 monthly, while three-bedroom properties command €1,200-€1,900 monthly, making long-term renting increasingly expensive.

For expats and remote workers, buying makes financial sense for stays exceeding 3-4 years, given rising rental costs and strong property appreciation. However, high upfront costs (including 10-15% for taxes and fees) require substantial initial capital.

Renting remains preferable for short-term stays or those uncertain about long-term plans, though competitive rental market requires quick decision-making and proof of income.

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What are the current real estate market trends in Alicante?

Alicante's real estate market in 2025 shows strong fundamentals with high demand significantly outpacing limited supply.

Demand drivers include international buyers (particularly from UK, Germany, and Scandinavia), remote workers seeking Mediterranean lifestyle, retirees, and domestic buyers. Tourism growth of 16.3% in 2024 has further boosted interest in the region.

Supply remains constrained due to limited new construction, administrative hurdles for developers, and rising construction costs. New builds emphasize sustainability and smart home features, commanding premium prices in the market.

Investor interest remains robust, with international buyers representing approximately 20% of transactions. Foreign investment has increased 8% year-on-year, particularly in luxury coastal properties and city center apartments.

Local policies include a two-year moratorium on new tourist rental licenses starting January 2025, aimed at protecting long-term housing supply for residents. This has shifted some investor focus toward long-term rental strategies.

What is the step-by-step process for buying property in Alicante?

1. Budget and Financing: Determine total budget including 10-15% additional costs for taxes, legal fees, and registration. Secure mortgage pre-approval if needed.
2. Obtain NIE Number: Apply for Número de Identificación de Extranjero (foreigner tax number), mandatory for all property transactions in Spain.
3. Open Spanish Bank Account: Required for property payments, utilities, community fees, and mortgage transactions.
4. Select Legal Representation: Hire reputable lawyer and/or real estate agent with local market expertise and positive client reviews.
5. Property Search and Viewings: Research neighborhoods thoroughly, visit properties in person, and assess location factors like transport, amenities, and future development plans.
6. Make Offer and Reservation: Submit written offer, negotiate terms, and sign reservation contract with 10% deposit upon acceptance.
7. Legal Due Diligence: Lawyer verifies property ownership, checks for debts or liens, confirms planning permissions, and reviews all legal documentation.
8. Final Contract and Payment: Sign purchase contract at notary office, transfer remaining balance, and receive property keys and ownership documents.
9. Registration and Setup: Register ownership at Land Registry, arrange utilities, insurance, and community fee payments.

Which real estate agencies and platforms work best for finding properties in Alicante?

The most effective property search combines international platforms with local expertise for comprehensive market coverage.

Major online platforms include Idealista (Spain's leading property portal), Rightmove International, and Spain-Real.Estate, offering extensive listings with detailed search filters and price comparisons across neighborhoods.

Specialized local agencies provide valuable market insights and exclusive listings. Recommended agencies include Inmoadapta (local market specialists), Carmen Ulloa (established regional presence), AP Properties, and ESPHOUSES, known for professional service and market expertise.

For luxury properties, Costa Blanca Investments and Movehappy specialize in high-end coastal villas and penthouses with comprehensive buyer services including viewings, legal support, and after-sales assistance.

New build specialists like those partnered with major developers offer direct access to off-plan properties and development projects, often with early-bird pricing and customization options.

It's something we develop in our Spain property pack.

What can you realistically buy in Alicante with different budgets?

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.

What are the most common mistakes when buying property in Alicante?

The most critical error is insufficient legal due diligence, particularly failing to verify property ownership and outstanding debts.

Many buyers skip professional property inspections, especially for older properties, leading to costly surprises with structural issues, electrical problems, or outdated systems. Always hire qualified surveyors for thorough inspections.

Underestimating total costs is common—budget an additional 10-15% beyond purchase price for taxes (7-10% transfer tax), legal fees (1-2%), notary costs, registration fees, and potential community charges or outstanding utilities.

Location mistakes include not checking neighborhood dynamics year-round, ignoring transport links, or buying based solely on online listings without visiting the area during different seasons to assess noise levels, tourist crowds, and local amenities.

Financing errors include not securing mortgage pre-approval, underestimating currency exchange impacts for foreign buyers, or not comparing different lenders for optimal rates and terms.

What does it cost to live in Alicante overall?

Alicante offers an affordable Mediterranean lifestyle with monthly living costs ranging from €1,200-€2,000 for comfortable living.

Housing costs vary significantly by location—city center one-bedroom apartments rent for €850-€1,000 monthly, while similar properties in outer areas cost €600-€750. Utilities (electricity, gas, water, internet) average €80-€177 monthly for standard apartments.

Food and dining remain very affordable, with grocery costs around €180-€450 monthly per person. Restaurant meals range from €10-€18 for casual dining, while three-course meals for two cost approximately €50 at mid-range establishments.

Transportation is economical with monthly public transport passes at €22. Taxis start at €1.45 with reasonable per-kilometer rates. Car ownership costs include fuel, insurance, and parking, adding €200-€300 monthly.

Healthcare through Spain's public system is excellent and free for residents. Private health insurance costs €40-€100 monthly depending on coverage level and age.

How is life for expats living in Alicante?

Alicante hosts a large, well-established expat community, particularly from the UK, Germany, and Scandinavia, creating strong support networks.

Language can be challenging—while English is spoken in tourist areas and by international businesses, Spanish proficiency is essential for full integration, dealing with bureaucracy, and accessing services outside expat-heavy zones.

The lifestyle emphasizes outdoor living with year-round pleasant weather, excellent beaches, and strong social culture. The pace is relaxed compared to northern European cities, with emphasis on work-life balance and family time.

Safety levels are high with low crime rates, though petty theft can occur in tourist areas. Healthcare quality is excellent, and the education system offers both Spanish state schools and international schools for expat families.

Integration opportunities exist through language schools, expat clubs, sports groups, and cultural activities. Many expats successfully blend into local communities while maintaining connections with international networks.

It's something we develop in our Spain property pack.

What are the opportunities for long-term rental income in Alicante?

Long-term rental demand in Alicante remains strong with excellent opportunities for consistent income generation.

Best performing areas include city center, Playa de San Juan, and emerging neighborhoods like Benalúa and Albufereta, where rental demand consistently exceeds supply. Modern apartments with amenities command premium rents and attract quality tenants.

Tenant profiles include local professionals, international remote workers, university students, and expat families seeking long-term accommodation. Demand is particularly strong for properties with modern amenities, good transport links, and proximity to services.

Rental yields average 5-6% annually in prime locations, with city center properties generating €850-€1,000 monthly for one-bedroom units and €1,200-€1,900 for three-bedroom apartments. Coastal properties with sea views command premium rents.

Market regulations favor long-term rentals over short-term tourist accommodation due to recent licensing restrictions. This creates increased opportunities for traditional rental strategies with stable, long-term tenant relationships.

Rental price growth of 10-14% annually indicates strong ongoing demand, making buy-to-let investment attractive for consistent cash flow and capital appreciation.

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.

Sources

1. 8 statistics for the Alicante real estate market in 2025 – Investropa
2. PROPERTY PURCHASE 2025 IN ALICANTE | Reuters Solicitors
3. Alicante's property boom: Why prices are soaring
4. Spanish Property Market 2025: Prices, trends & opportunities
5. 17 strong forecasts for real estate in Alicante in 2025 – Investropa
6. Real estate market Alicante - Alacant - Indomio
7. House prices in the Alicante Province increase by 13.9%
8. Rental Yields in Spain in 2025, Q1 | Global Property Guide
9. Best Places To Invest In Property In Spain In 2025 | The Luxury Playbook
10. Spain's Residential Property Market Analysis 2025
11. Solutions and Tips for Short Term Rentals in Spain
12. Why 2025 is the Perfect Time to Buy Property in Spain?