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
Why is Alicante emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the thriving tourism sector, or the competitive pricing compared to other European markets? What makes it a compelling choice for investors?
We often encounter these questions because we are actively engaged with local developers, real estate agents, and investors like you. Given the growing interest in this market, we've decided to compile our insights into a comprehensive article for everyone's benefit.
Our aim is to present a clear case for investing in Alicante's real estate market, supported by our firsthand experience and market expertise.
If you feel we've overlooked an important aspect or want more information, please reach out (we respond very quickly). Your feedback enhances our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
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1) Alicante’s property market is growing steadily, offering you stable investment potential
Alicante's real estate market is on the rise, making it a hot spot for investors.
In 2024, the average price per square meter in Alicante hit €1,453, marking a 7.8% increase from the previous year. This growth is faster than the national average, showing Alicante's market strength. The city’s charm, with its stunning beaches and vibrant lifestyle, draws in tourists and potential homeowners alike.
Holiday homes are in high demand here. Alicante's reputation as a top tourist destination has fueled a 13.9% increase in rental prices over the past year. This surge reflects the growing need for vacation accommodations, making it a lucrative area for rental investments.
Investors are also eyeing Alicante for its rental yields. In the Valencian Community, where Alicante is located, rental prices have jumped by 12.3%. This makes it one of Spain's fastest-growing regions for rental income, offering stable returns for property investors.
With its sunny climate and cultural appeal, Alicante continues to attract both tourists and long-term residents. The consistent rise in property and rental prices highlights the city’s potential as a solid investment choice.
Sources: Euro Weekly News, Euro Weekly News
2) Golf lovers are drawn to Alicante’s famous courses, making nearby properties a great investment
Alicante's golf courses are a magnet for property investors, thanks to their stellar reputation.
In places like Playa de San Juan, where the Alicante Golf Club is nestled, properties enjoy high occupancy rates all year round. This steady demand is fueled by golf enthusiasts who flock to the area, ensuring that accommodations are always in demand.
Living near these prestigious courses isn't just about the game; it's a smart investment. Property values in golf communities are on the rise, especially in luxury spots like Altea, Jávea, and Teulada-Moraira. Here, homes can command prices over €4 million, with international buyers eager to snap them up.
Alicante's allure extends beyond its greens. The region's perfect climate and top-notch golf facilities draw a significant number of international tourists. This influx results in around 500,000 overnight stays each year, giving the local accommodation sector a much-needed boost during the off-peak months.
The economic ripple effect of golf tourism is impressive. It generates approximately €745 million annually, benefiting not just the accommodation sector but also dining, transport, and retail. Golf tourism is a major economic driver in the region, supporting various local businesses.
Sources: Alicante Turismo, Costa Blanca Golf Properties, Idealista
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.
3) Alicante’s beautiful sea views make its properties highly desirable
Alicante's coastline is famous for its breathtaking sea views, making properties here highly desirable.
In 2023 and 2024, property prices along this stunning coastline have seen a noticeable rise. For instance, in Torrevieja, prices jumped by 9.2%, while in Benidorm, they increased by 5.6%. These areas are particularly popular due to their beautiful beaches and vibrant local culture.
The booming tourism industry is a big driver of this demand. In 2024, Alicante's tourism sector thrived, with occupancy rates in coastal areas exceeding 80% during peak times like New Year's Eve. This shows how much people love the sea views, whether they're visiting or thinking about buying a home.
Renting out properties with sea views is also a lucrative option. In June 2024, rental prices went up by 13% compared to the previous year. This increase highlights the strong demand for sea-view properties, which offer higher rental yields. It's clear that these views are a major selling point.
For those considering buying a property, the allure of Alicante's coastline is undeniable. The combination of stunning views and a thriving rental market makes it an attractive investment. Whether you're looking to buy a holiday home or a rental property, the sea views are a key factor in the area's appeal.
With its beautiful beaches and lively atmosphere, Alicante's coastline continues to draw interest from both tourists and potential property buyers. The ongoing demand for properties with sea views is a testament to the area's unique charm and investment potential.
Sources: Idealista, Euro Weekly News, Travel and Tour World
4) Alicante’s top-rated beaches make its properties more appealing
Alicante's beaches are consistently rated among the best in Spain, making properties here highly desirable.
With beaches like Playa de San Juan and Playa del Postiguet, visitor numbers are always high. Even in September 2024, Alicante boasted a 91% occupancy rate, keeping the summer vibe alive longer than most places.
These beaches proudly display the prestigious Blue Flag awards, a mark of excellent water quality, environmental care, and safety. This recognition is often highlighted in travel magazines, adding to the allure for tourists and potential property buyers.
The real estate market in Alicante mirrors this beach appeal. Property values are climbing, especially in areas like Playa de San Juan, where rental yields are also attractive. Buyers frequently prioritize proximity to the beach, drawn by the quality of life and amenities.
Real estate agents in Alicante report a high demand for properties near these beaches. The combination of stunning beaches and a vibrant lifestyle makes it a top choice for many.
Sources: Quadratia, Euro Weekly News, Welcome to Alicante, Happy Life
5) International events in the city attract visitors, boosting short-term rental demand
Alicante is buzzing with international events, making it a prime spot for short-term rentals.
During the famous Bonfires of San Juan in 2023, hotel occupancy hit an impressive 93.5%, drawing crowds from all over the globe. This trend didn't stop there; in 2024, June and July saw packed hotels, showing that tourists flock to the city during these vibrant events.
The short-term rental scene in Alicante is thriving, with 3,600 active Airbnb listings by September 2024. This boom is largely due to the surge in demand during event times. On average, these rentals have a 75% occupancy rate, with guests paying around €83 per night. Most properties are booked for about 274 nights a year, bringing in a nice chunk of change for owners.
It's not just Alicante seeing this trend. Nearby cities like Benidorm and Valencia also enjoy rental spikes when international events roll in. This suggests a regional pattern, with Alicante standing out thanks to its diverse crowd of visitors.
Tourists from the UK, Ireland, Italy, and other parts of Europe flock to Alicante, highlighting the city's global draw. These events are a magnet, pulling in people from all corners, eager to experience the local culture and festivities.
Sources: Alicante Airbnb Market Statistics, Alicante Hotel Occupancy Rates
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6) Alicante’s lively festivals draw visitors, making it easy to rent out your property short-term
Alicante's cultural festivals are a huge draw for visitors, boosting short-term rental opportunities in the city.
In 2024, the city saw a tourism boom, with occupancy rates hitting nearly 96% during festival weekends. This high demand for short-term rentals is especially noticeable during long bank holiday weekends in August.
By September 2024, there were 3,600 active Airbnb listings in Alicante, showing a clear response to the influx of festival-goers. This increase in listings is a direct reaction to the growing number of visitors eager to experience the city's vibrant cultural scene.
Local organizations have given positive feedback, highlighting the strong demand for accommodations during these lively events. The buzz around Alicante's festivals is not just local; media coverage has also played a big part in promoting them as must-see attractions.
Thanks to this media spotlight, Alicante enjoyed a record-breaking summer in 2024, with tourists flocking to the city for its unique cultural offerings. The high occupancy rates are a testament to the festivals' appeal.
Visitors are particularly drawn to the cultural events, which have become a key reason for the city's consistent tourism growth. The festivals are not just events; they are experiences that keep people coming back.
Sources: Airbtics, Travel and Tour World, Euro Weekly News
7) With efficient public transport, Alicante’s properties are more appealing to buyers
Alicante's public transportation system is a major draw for property buyers.
With its extensive tram and bus services, getting around the city is a breeze. The Alicante Tram alone served over 13 million passengers in 2022, making it a vital part of daily life. Key stations like Luceros and Mercado are bustling hubs, ensuring you're always connected to where you need to go.
In 2023, the city buses saw a remarkable rise in usage, with passenger numbers jumping by 30.3% to nearly 19.7 million. This increase is thanks to perks like free rides for those under 31 and a universal 50% discount on passes. New routes, such as line 28, which links the city center, beaches, and San Juan Hospital, are proving popular.
Investments in public transport infrastructure are paying off, making the system even more efficient. The Alicante Tram continues to expand, with new lines like the Luceros – Benidorm tram-train line, which carried over 2.7 million passengers in 2022. These additions make public transport a practical choice for daily commutes.
Government efforts to promote public transport as a green alternative are boosting its appeal. The City Council of Alicante is pushing for more public transport use to improve air quality and cut carbon emissions. This aligns with a growing trend of reducing car ownership, as residents increasingly choose efficient public transport.
For those considering buying property in Alicante, the city's commitment to sustainable and accessible public transport is a significant advantage. Efficient public transport not only enhances daily life but also supports a healthier environment, making Alicante an attractive place to live.
Sources: Euroweekly News, Wikipedia, Smart Cities Dive
8) Alicante’s airport has direct flights to many European cities, making it easily accessible
Alicante's international airport offers direct flights to many European cities, making it a breeze to get in and out of the region.
Imagine hopping on a plane from Alicante and landing directly in vibrant cities like Milan, Berlin, or Copenhagen. This convenience is a game-changer for both tourists and business travelers, opening up a world of possibilities.
In September 2024, the airport saw a record-breaking 1,801,340 passengers, a 15.3% jump from the previous year. This surge is fueled by international travelers, with a 15.5% increase, highlighting Alicante's growing appeal as a travel hub.
From January to September 2024, the airport handled over 14 million passengers, cementing its status as a major gateway. This bustling activity underscores its importance in connecting people and places.
Ryanair is stepping up its game with its biggest summer schedule ever for 2024, adding new routes and more planes based in Alicante. This expansion means more travel options and a boost to the local economy, drawing in tourists and making international visits a breeze.
With these developments, Alicante is not just a destination but a key player in European travel, offering seamless connections and endless opportunities for exploration.
Sources: Flight Connections, Esentya Estate, Aviation24
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.
9) Alicante’s Barrio de Santa Cruz attracts tourists, boosting property interest
Barrio de Santa Cruz in Alicante is a hot spot for tourists, which naturally boosts interest in local properties.
In 2024, Alicante saw a big jump in international visitors, with over 10 million tourists arriving between January and October, a 16.3% increase from the previous year. This influx likely made Barrio de Santa Cruz even more popular, as people are drawn to its rich history and culture. The Valencian Community's focus on sustainable tourism has also made the area more appealing to both locals and international guests.
Tourism brought in more than €13 billion in spending in 2024, significantly impacting Alicante's economy. This financial boost makes areas like Barrio de Santa Cruz attractive to investors looking to benefit from its popularity. The media often highlights such tourist spots, and Barrio de Santa Cruz frequently appears in travel guides and articles, sparking interest among tourists and potential property buyers.
Government efforts to preserve and promote the historic district add to its charm. Restoration projects, cultural events, and marketing campaigns showcase the area's unique appeal, drawing in both tourists and those looking to buy property. The trend of international buyers seeking homes in historic areas for their charm and rental potential is another reason why property interest in Barrio de Santa Cruz is on the rise.
Investors are particularly interested in the potential for rental income, as the area's popularity with tourists means high demand for short-term rentals. This makes buying property in Barrio de Santa Cruz not just a lifestyle choice but a smart financial move.
With its vibrant atmosphere and historic allure, Barrio de Santa Cruz continues to captivate both visitors and property investors, making it a prime location for those looking to invest in Alicante's thriving real estate market.
Sources: Travel and Tour World, Euro Weekly News, Negohtel Bulletin
10) Alicante’s mild climate draws tourists all year, increasing rental demand
Alicante's mild climate is a magnet for tourists all year round.
With an average annual temperature of 18°C (64°F) and around 3,000 hours of sunshine each year, Alicante is a sunny paradise that draws visitors no matter the season. This delightful weather is a key reason why people flock here, making it a hot spot for those seeking a warm escape.
In 2024, Alicante welcomed a record-breaking 21.8 million international tourists during the summer, a 7.3% jump from the previous year. This surge in visitors underscores the constant demand for places to stay, which in turn fuels the rental market.
Even during the quieter months, rental properties in Alicante enjoy high occupancy rates. The city introduced a two-year ban on new holiday rentals in 2025 to tackle overtourism and ensure regulations are met, highlighting the ongoing high demand for rentals throughout the year.
Sources: Via Empresa, Travel and Tour World, Alicante Business, France 24
11) The University of Alicante attracts international students, ensuring a constant need for student housing
The University of Alicante is a hotspot for international students, attracting many from countries like Mexico, Colombia, and the United States.
In the 2022/2023 academic year, Spain saw a record influx of 241,777 international students, with Alicante being a top choice for many. This surge has created a steady demand for student housing in the city.
Alicante faces a chronic shortage of quality student accommodation, with a student-to-bed ratio of about 6:1. This means the city struggles to provide enough dedicated student beds for its growing student population, which is over 27,000.
Every year, around 300,000 students in Spain search for off-campus flats, including both local and international students. This high demand puts pressure on the rental market in Alicante.
As a result, rental yields in Alicante have increased, ranging from 6.29% to 7.38%. This makes the city an attractive option for property investors looking to capitalize on the student housing market.
Sources: Studies in Spain, Amro Partners, ENAE Business School, Global Property Guide
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12) With infrastructure investments from the local government, property values are on the rise
The local government invests in infrastructure to boost property values significantly.
Take Alicante, for instance, where government spending on infrastructure projects has made the real estate market quite dynamic. This is clear from the high number of property sales per thousand inhabitants, which is much higher than in other regions like CastellĂłn and Valencia. In Alicante, neighborhoods such as Carolinas and Altozano have seen significant price increases due to improved locations and accessibility.
Across Spain, this isn't just an Alicante phenomenon; infrastructure investment generally leads to property appreciation. Improved public transport and reduced travel times are key factors. In Alicante, ongoing development of transportation links is expected to enhance the region's appeal, attracting more buyers and driving up property values.
The growing popularity of neighborhoods like El Barrio and Raval Roig, which offer a mix of traditional charm and modern amenities, further supports this trend. These areas are becoming hotspots, thanks to their blend of old-world charm and modern conveniences. The local government’s focus on infrastructure is a big reason why.
In Alicante, the impact of infrastructure on property values is evident. The city’s strategic location and improved transport links make it a prime spot for real estate investment. Neighborhoods are becoming more accessible, and this is drawing in more potential buyers.
Sources: Fine & Country, CaixaBank Research, Tu Property in Spain
13) Alicante’s excellent healthcare makes it a top choice for retirees looking to relocate
Alicante is a top choice for retirees thanks to its excellent healthcare facilities.
Spain's healthcare system is impressive, ranking 7th in the World Health Care Index, which is higher than many European countries. This makes it a great option for those considering a move. In Alicante, you’ll find the HLA Vistahermosa Clinic, one of Spain's most modern medical centers, offering care in over 40 specialties. This means retirees can access comprehensive medical services without traveling far.
Spain is known for its efficient healthcare system, which is crucial for retirees needing timely medical attention. The country has low rates of preventable mortality and well-functioning primary care systems. This efficiency ensures that retirees receive the care they need when they need it.
Moreover, Spain invests a significant portion of its GDP in healthcare, ensuring comprehensive coverage. This investment means retirees have access to a wide range of services, making it easier to manage health needs. The healthcare facilities in Alicante are particularly appealing to retirees, offering peace of mind with their top-notch services.
For those considering a move, Alicante's healthcare system is a major draw. The city's medical facilities are not only modern but also highly efficient, providing retirees with the care they need. This makes Alicante an attractive destination for those looking to enjoy their retirement years in a place with excellent healthcare.
Sources: Health Europa, Alicante Runaway, Immigrant Invest
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.