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What is happening in Alicante’s real estate market? Are prices on the rise or decline? Is Alicante still a prime destination for international buyers? How are local government policies shaping real estate dynamics in 2025?
These are the questions we hear every day from industry professionals, potential buyers, and sellers, from the city center to the coastal areas. Maybe you’re curious about these trends too.
We understand this because we maintain close connections with local experts and individuals like you, exploring the Alicante real estate market daily. That’s why we crafted this article: to deliver clear insights, thorough analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to reach out with your thoughts or comments, and we’ll strive to enhance this content for you.

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1) Alicante will see more foreign buyers as it becomes a popular retirement destination
In recent years, Alicante has become increasingly popular among foreign buyers, particularly as a retirement destination. In 2023, the city experienced a 6% growth in its real estate market, with foreign buyers making up 45% of all property purchases. This trend continued into 2024, with foreigners accounting for 44% of investments in the region.
The rise in international interest is supported by the increasing number of international flights to Alicante-Elche Airport. In 2024, the airport reported a record-breaking year, with a 15.5% increase in international passengers. This growth in accessibility makes it easier for potential buyers to visit and invest in the area.
Additionally, Alicante's cost of living is favorable compared to other European cities, making it an attractive option for retirees. The city offers a lower cost of living than major cities like Madrid or Barcelona, with affordable housing options such as one-bedroom apartments in the city center costing around €600-€700 per month.
Sources: Von Poll Costa Blanca, Euro Weekly News, Housenix
In this video, British and Belgian buyers dominate Alicante's market, with over 30,000 homes sold to foreign buyers in 2023, showcasing demand from Northern Europe.
2) Northern European buyers will keep driving demand in Alicante
Foreign buyers make up 45% of property purchases in Alicante in 2023, driving a 6% market growth.
Among these buyers, Northern Europeans, especially from the UK, are leading the charge. In the Valencian community, where Alicante is located, nearly half of the foreign residents are from abroad, with the UK alone accounting for 17.1% of this group. This trend is largely fueled by retirees looking for a warmer climate and a better lifestyle.
Alicante is a hotspot for retirees from Northern Europe, particularly the UK and Germany. Favorable exchange rates make property purchases more affordable for these buyers, adding to the region's allure. The area is also home to international schools and communities that cater to Northern Europeans, making it easier for expatriates to settle in.
For many, Alicante offers a perfect blend of sun, sea, and a welcoming community. The presence of international amenities and services makes the transition smoother for those moving from colder climates. This has made Alicante a preferred choice for those seeking a relaxed yet vibrant lifestyle.
With its beautiful coastline and rich cultural heritage, Alicante continues to attract a diverse range of international buyers. The region's infrastructure and connectivity further enhance its appeal, making it a convenient location for both living and investing.
As the demand from foreign buyers remains strong, Alicante's real estate market is poised for continued growth. The influx of Northern Europeans is expected to sustain this trend, ensuring a dynamic and thriving property market.
Sources: Alicante Real Estate Boom, Foreign Residents in Alicante, Retiree Migration

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 property price growth will slow as the market stabilizes after rapid growth
In 2023, Alicante saw a significant rise in property prices, with a 17% increase year-on-year. However, this growth was still below the peak levels seen in 2006 and also below the national average. This suggests that while there was rapid growth, it wasn't unprecedented or unsustainable.
By the first half of 2024, the growth rate had slowed to 7%, and there was a noticeable 7% decrease in sales. This dip in sales activity indicates that the market might be cooling off, as fewer people are buying despite the continued price increases. This trend of slowing growth is expected to continue, with predictions of only a 6% increase in property values by 2025, averaging just 2% per year.
Additionally, the decline in sales of used homes due to a shortage of supply and rising prices suggests that the market is adjusting. With transactions dropping by 10%, it seems that the rapid price increases are starting to impact buyer behavior, leading to a more stabilized market environment.
Sources: Alegria Real Estate, Spanish Property Insight, Euro Weekly News, BRIC Group
4) Alicante’s rental yields will rise in popular tourist areas due to high seasonal demand
Rental yields in Alicante are set to rise in popular tourist spots thanks to high seasonal demand.
In 2024, Alicante welcomed over 10 million international visitors, a 16.3% jump from the previous year. This influx of tourists means a strong need for places to stay, which is likely to push rental yields higher.
Typically, short-term rentals in Alicante are booked for 274 nights a year, with a median occupancy rate of 75%. This high demand for properties translates into more rental income for owners.
During peak times like August, hosts can earn an average of €3,063 per month, showing that daily rates are higher when demand peaks.
Alicante-Elche Miguel Hernández Airport saw significant growth in 2024, solidifying its place as one of Spain’s fastest-growing airports. This boost in international flights is expected to bring even more tourists, further increasing the demand for rental properties.
Tourists spent more than €13 billion in the Valencian Community from January to October 2024, a 23.1% increase from the previous year. This spending power indicates tourists are willing to pay for accommodations, which should lead to higher rental yields.
Sources: Travel and Tour World, Airbtics
5) Alicante's rising student population will boost demand for rentals near universities
The student population in Alicante is booming, and it's shaking up the rental market near universities.
With more students enrolling at places like the University of Alicante, which hosts between 20,000 and 24,999 students, the need for housing is skyrocketing. Many of these students are on the hunt for places to live, and it's creating a buzz in the rental scene.
In Alicante, there's a serious shortage of quality student housing. Right now, the ratio of students to available beds is about 6:1, which means many students are scrambling to find a spot. This shortage is driving up rental prices, especially in areas close to universities. In fact, 17% of homes on the Costa Blanca are rented out within just 24 hours of being listed.
To tackle this issue, new student housing projects are popping up. Amro Partners is investing in a €30 million project in San Vicente del Raspeig, set to offer 280 student beds near the University of Alicante. They're aiming for top-notch standards with BREEAM ‘Outstanding’, Fitwel 3*, and EPC ‘A’ ratings.
Another exciting development is from Amro Estudiantes Alicante, which plans to offer a mix of room types and shared facilities. These projects are not just about providing beds; they're about creating vibrant student communities.
Sources: EduRank, CoStar, Euro Weekly News, Amro Partners
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6) Rents in Alicante will rise moderately due to population growth and limited housing supply
In recent years, Alicante has experienced a noticeable increase in its population. Back in 2023, the province welcomed nearly 70,000 new residents, marking a 3.62% rise, which was the highest percentage increase in Spain at that time. By 2024, the population continued to grow, with Alicante surpassing Seville to become the fourth most populated region in Spain, adding over 44,000 new residents.
This population boom is largely driven by an influx of foreign residents, who now make up over 22% of the population. In the past two years alone, the foreign population increased by more than 60,000 people, accounting for a significant portion of the overall population growth. This surge in residents naturally leads to a higher demand for housing.
However, the housing supply in Alicante hasn't kept pace with this growing demand. Structural issues, such as a lack of land for development and a shortage of skilled labor, have hindered the production of new housing. As a result, less than 30% of the new households formed are being met with new housing developments. This limited supply, combined with the rising demand, has contributed to an increase in housing prices.
In 2024, housing prices in Alicante saw a 7.8% increase compared to the previous year, outpacing the national average. This trend is evident in various municipalities, with places like Orihuela and Torrevieja experiencing significant price hikes. As housing prices rise, rents are likely to follow suit, especially given the high occupancy rates of existing rental properties.
Sources: Euroweekly News, Euroweekly News, CaixaBank Research, The Olive Press
7) Foreign investment in Alicante will rise as international buyers look for holiday homes
Alicante is becoming a hotspot for foreign investment, especially for those looking to buy holiday homes. In 2023, foreigners made up 15% of all home sales in Spain, and Alicante was a standout region, accounting for 44% of these foreign property transactions. This shows a strong interest from international buyers in the area.
The increase in international flights to Alicante-Elche Airport is another factor driving this trend. In June 2024, the airport set a new record with over 1.7 million passengers, most of whom were international travelers. This accessibility makes Alicante an attractive destination for foreign buyers looking for holiday homes.
Additionally, the demand for short-term rental properties in Alicante is on the rise, fueled by the region's popularity as a holiday destination. This trend is expected to continue, as more international buyers are interested in properties they can rent out when not in use.
Sources: Idealista, Euro Weekly News
8) Alicante’s property prices will rise moderately with growing demand from local and international buyers
Property prices in Alicante have been on the rise, catching the eye of both local and international buyers.
In 2024, housing prices jumped by 7.8% in the first quarter compared to the previous year, outpacing the national average. This upward trend is expected to continue, with experts forecasting a 3% to 7% increase in 2025 due to strong demand and limited supply.
International buyers are a major force behind this demand. They are less impacted by local economic shifts like interest rate hikes, so they keep investing in coastal gems like Alicante. The Golden Visa program has been a magnet for these investors, further fueling the property market.
Local economic growth is also a key player. Alicante's charm as a tourist hotspot has spurred demand for holiday homes and rentals, nudging prices upward. Plus, improvements in infrastructure, like better transport and amenities, have made the area even more appealing for living and investing.
With its sunny beaches and vibrant culture, Alicante continues to attract a diverse range of buyers. The combination of international interest and local development is a recipe for sustained growth in the property market.
Sources: Kotilista, SGM Legal Spain

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) Luxury apartment demand in Alicante will grow as affluent buyers enter the market
The demand for luxury apartments in Alicante is booming, driven by several key factors.
In recent years, house prices in Alicante have jumped by 15%, outpacing other regions in Spain. This surge reflects a strong appetite for real estate, especially in the luxury segment. By 2024, over 60% of luxury properties sold in Alicante were priced above €1M, with a significant portion exceeding €2M. This trend highlights the growing interest among affluent buyers.
High-net-worth individuals are flocking to the area, further fueling this demand. The Henley Private Wealth Migration Report 2024 suggests that Portugal, including the Algarve, is attracting over 800 wealthy individuals, many of whom are eyeing Alicante as a prime investment spot. Foreign buyers, particularly from Belgium, the Netherlands, Switzerland, and Germany, are leading the charge, making up a whopping 80% of luxury property transactions in the region.
Luxury property sales have seen a remarkable uptick. According to the Institute of Economic Studies of Alicante (INECA) and real estate agency Engel & Völkers, there's been a notable increase in purchases of properties over €1M by foreign buyers. In 2024, Alicante claimed 11.2% of Spain’s million-euro-plus homes, securing its position as the fourth most sought-after location nationally for high-end real estate.
Sources: Euroweekly News, Euroweekly News, Blacktower FM
10) Alicante's rental yields will rise with growing demand from locals and expatriates
Rental yields in Alicante are set to improve as rental demand increases from both locals and expatriates. In recent years, particularly in 2023 and 2024, the rental market in Alicante experienced significant growth in rental prices. This was largely due to a shortage of supply and rising demand, especially in central areas and near the beaches, where rents saw the most substantial increases.
Moreover, Alicante has become increasingly popular among expatriates, partly due to media coverage and social media trends that highlight it as an attractive destination for remote work. This growing popularity has contributed to a surge in demand for rental properties. Additionally, the tourism industry in Alicante has shown remarkable resilience and growth, with over 10 million international visitors in 2024, which further boosts rental demand.
Locals are also showing a preference for renting over buying, influenced by lifestyle changes post-pandemic and the overall desirability of living in Alicante. This trend is supported by reports indicating a decrease in property sales but an increase in rental inquiries, suggesting a shift towards renting. The economic recovery and job market improvements in Alicante also create a favorable environment for rental properties, supporting higher rental yields.
Sources: Travel and Tour World, Tu Property in Spain, CaixaBank Research
11) Inland Alicante will see slower growth as buyers focus on coastal properties
Property prices in coastal Alicante are rising steadily.
In early 2024, coastal properties saw a 5.7% increase in prices, reaching €1,740 per square meter. This trend mirrors other popular coastal spots like Malaga and the Balearic Islands, where prices are also climbing.
The surge in demand is largely due to the influx of tourists. The Valencian Community, which includes Alicante, welcomed over 10 million foreign tourists in 2023, with a 29% jump in international visitors in early 2024. This boom has led to more hotel investments and infrastructure, making the coast even more attractive.
People, especially retirees and expatriates, are drawn to the coast for its favorable climate and vibrant lifestyle. Beachfront homes and luxury villas are in high demand, pushing prices up further.
Investors are also eyeing the rental market, as Alicante's popularity as a tourist hotspot offers higher rental yields. This makes coastal properties more appealing compared to inland options.
Sources: Idealista, Urbanitae, Euro Weekly News
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12) Alicante’s property prices will steadily rise due to limited supply and high demand
Alicante's property market is booming due to limited supply and high demand.
In 2024, housing prices in Alicante jumped by 7.8%, far outpacing the national average of 3.3%. This surge places Alicante among the top districts for price increases, showing just how strong the demand is here.
Foreign buyers are particularly drawn to Alicante's coastal areas, seeking second homes. This is evident from high occupancy rates and revenue from short-term rentals, which highlight the area's appeal. The shortage of new land for development, a lingering issue since the 2008 recession, means new properties are scarce despite increased construction efforts.
Alicante is becoming a popular relocation spot, thanks to its pleasant climate, stunning beaches, and rich culture. Real estate agencies report growing buyer interest, and tourism is on the rise, with a 9.29% increase in national visitors from January to March 2024 compared to the same period in 2023.
These factors are driving up property prices, as the demand for housing remains strong. The limited availability of new properties only adds to the pressure, making Alicante a hot spot for real estate investment.
With its unique blend of natural beauty and cultural richness, Alicante continues to attract both tourists and potential homeowners, ensuring a steady climb in property values.
Sources: Nardia, Airbtics, Euro Weekly News, Euro Weekly News
13) Alicante's rental yields will remain stable as the market adapts to new supply and demand dynamics
Alicante is expected to see stable rental yields as the market adjusts to new supply and demand dynamics due to several key factors. First, the city has experienced a significant rise in rental demand, largely driven by increased tourism. This is evident from the notable growth in rental prices, with some neighborhoods seeing increases as high as 28% in 2023.
Additionally, Alicante continues to attract expatriates and retirees, particularly from the UK, which contributes to a steady rental market. This demographic trend ensures a consistent demand for rental properties, supporting stable yields. Moreover, despite challenges like land shortages and a lack of skilled labor, new residential developments are underway, indicating efforts to meet the growing demand and stabilize the market.
The local government's urban planning and housing policies also play a crucial role. By implementing stricter regulations on tourist housing, the Alicante City Council aims to balance tourism with residents' quality of life, potentially reducing unfair competition and stabilizing the rental market. Furthermore, Alicante's rental yields remain competitive compared to other Spanish cities, with an average yield of 6.39% in 2024, which is higher than the national average.
Sources: Global Property Guide, Emerald Insight, Polska Costa, CaixaBank Research, Tu Property in Spain
14) Alicante will see demographic changes with more international residents moving to the city
Alicante has been experiencing significant demographic shifts due to the increasing number of international residents settling in the city. In 2023, there were 329,447 foreign residents, making up 17.3% of the population. By 2024, Alicante ranked third in Spain for the highest numbers of foreign residents, with almost half of the foreigners in the Valencian community choosing to live there.
The real estate market has seen a notable impact from this trend. In the first quarter of 2023, Alicante recorded 23,380 international property deals, marking an 8% rise from the same period in 2022. This accounted for 14.52% of all property purchases in early 2023 made by international clients, with foreigners buying one out of every five homes in Spain, and Alicante leading in sales and purchases by foreigners.
Additionally, the influx of international residents has led to an increase in services catering to expatriates, including international schools. Although specific data on the number of international schools is not provided, the demand for such services is clearly rising. The media has also highlighted Alicante as a desirable location for expatriates, with numerous articles and reports emphasizing its appeal.
Sources: Euro Weekly News, Bravos Estate, Hispania Homes Moraira
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.