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
If you're considering buying rental property in Alicante, understanding the actual yields you can expect is essential before making any investment decision.
This article breaks down gross and net rental yields, neighborhood variations, property types, and all the costs that eat into your returns in Alicante as of early 2026.
We constantly update this blog post to reflect the latest market data and trends in Alicante's rental market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Alicante.
Insights
- Alicante's gross rental yield sits around 5.5% in early 2026, which places it in the mid-to-upper range compared to other Spanish coastal cities where foreign buyer demand often compresses returns.
- The gap between gross and net yield in Alicante typically runs 1.1 to 2.3 percentage points, meaning a 5.5% gross yield often translates to roughly 3.8% net after all recurring costs.
- Neighborhood yield spreads in Alicante can swing by 2 to 3 percentage points, with areas like Carolinas Altas delivering higher returns than premium beach zones like Playa de San Juan.
- Studios and one-bedroom apartments in Alicante consistently outperform larger units on yield, often by 1 to 2 percentage points gross, due to higher rent per square meter.
- Alicante's IBI property tax reduction affecting over 336,000 properties in 2026 provides a small but meaningful boost to net yields compared to previous years.
- The city's vacancy rate for long-term rentals runs between 4% and 7% in most areas, which is tight by Spanish standards and reflects strong year-round renter demand.
- Foreign buyer pressure in Alicante province, which doubled in 2024, pushes purchase prices up faster than local wages, which tends to compress yields in popular coastal neighborhoods.
- The planned Port of Alicante congress center, expected to break ground in spring 2026, could support rental demand in Centro and Ensanche-Diputacion if construction stays on schedule.
What are the rental yields in Alicante as of 2026?
What's the average gross rental yield in Alicante as of 2026?
As of early 2026, the average gross rental yield in Alicante sits at approximately 5.5% per year when you mix all common residential property types together.
This figure can range between 5.0% and 6.2% depending on the specific neighborhood, unit size, and property condition, so most investors in Alicante will land somewhere within this band.
Compared to Spain-wide benchmarks, Alicante's gross yield falls in the mid-single-digit range that major housing research reports show for coastal cities in late 2025, making it competitive but not exceptional.
The single most important factor influencing gross yields in Alicante right now is the strong foreign buyer demand in the province, which pushes purchase prices up and can compress returns even as rents continue rising.
What's the average net rental yield in Alicante as of 2026?
As of early 2026, the average net rental yield in Alicante lands at approximately 3.8% per year when you account for all typical landlord expenses.
The typical gap between gross and net yields in Alicante runs between 1.1 and 2.3 percentage points, which reflects the various costs that quietly eat into your rental income.
The expense category that most significantly reduces gross yield to net yield in Alicante is the combination of IBI property tax and community fees, which together can represent a substantial fixed annual cost regardless of how much rent you collect.
Most standard investment properties in Alicante deliver net yields between 3.2% and 4.4%, with the range depending on your specific cost structure, management choices, and how efficiently you minimize vacancy.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Alicante.
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 yield is considered "good" in Alicante in 2026?
In Alicante's rental market as of 2026, a gross yield of 6.0% or higher is generally considered "good" by local investors, while a net yield above 4.5% is seen as genuinely attractive.
The threshold that separates average properties from high performers in Alicante is roughly 6.5% to 7% gross, though hitting those numbers usually means targeting smaller units, less prime micro-areas, or properties that need some renovation work.
How much do yields vary by neighborhood in Alicante as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in Alicante can easily reach 2 to 3 percentage points.
The neighborhoods that typically deliver the highest rental yields in Alicante are working-class and well-connected areas like Carolinas Altas, Carolinas Bajas, Virgen del Remedio, and Los Angeles, where purchase prices remain moderate while local rental demand stays consistent.
On the other hand, neighborhoods like Playa de San Juan, Cabo de las Huertas, Centro, and Vistahermosa typically deliver the lowest yields because the beach or prestige premium drives purchase prices up faster than rents can follow.
The main reason yields vary so much across Alicante neighborhoods is that purchase prices react more dramatically to lifestyle factors like beach proximity and views than rents do, so premium locations compress yields even when absolute rents are high.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Alicante.
How much do yields vary by property type in Alicante as of 2026?
As of early 2026, gross rental yields in Alicante range from roughly 4.5% for larger houses and villas up to 7% or more for well-located studios, depending on the property type and condition.
Studios and one-bedroom apartments currently deliver the highest average gross rental yields in Alicante because they command the best rent per square meter and attract the largest pool of renters.
Townhouses and villas inside Alicante city tend to deliver the lowest average gross yields because their higher capital values come with a narrower tenant pool, making the rent-to-price math less favorable.
The key reason yields differ between property types in Alicante is simply that smaller units rent for more per square meter while larger properties sell for more per square meter, which shifts the ratio in favor of compact apartments.
By the way, you might want to read the following:
What's the typical vacancy rate in Alicante as of 2026?
As of early 2026, the estimated average residential vacancy rate for long-term rentals in Alicante runs between 4% and 7% of annual rent when you account for turnover and leasing friction.
Across different neighborhoods in Alicante, vacancy rates can range from as low as 2% to 4% in very strong micro-areas up to 8% or more in weaker demand pockets or for overpriced units.
The main factor currently driving vacancy rates in Alicante is rental pricing accuracy, because units priced correctly for their location and condition fill quickly in this tight market, while overpriced listings sit empty longer.
Compared to national averages, Alicante's vacancy rate is relatively low, reflecting the city's strong year-round rental demand driven by both local residents and the broader Costa Blanca's appeal to domestic and foreign renters.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Alicante.
What's the rent-to-price ratio in Alicante as of 2026?
As of early 2026, the average rent-to-price ratio in Alicante is approximately 0.44% per month, which translates to about 5.3% annually when you divide monthly asking rent by the typical purchase price per square meter.
For buy-to-let investors in Alicante, a rent-to-price ratio above 0.5% monthly (or 6% annually) is generally considered favorable, and this ratio is essentially your gross yield before any expenses are deducted.
Compared to other Spanish coastal cities, Alicante's rent-to-price ratio is competitive but not exceptional, sitting in line with what you'd expect from a popular Mediterranean destination where foreign buyer demand supports prices.
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.
Which neighborhoods and micro-areas in Alicante give the best yields as of 2026?
Where are the highest-yield areas in Alicante as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Alicante are Carolinas Altas, Virgen del Remedio, and Los Angeles, all of which combine lower entry prices with steady local rental demand.
In these high-yield areas like Carolinas Altas and Virgen del Remedio, investors can typically achieve gross rental yields in the 6.5% to 7.5% range, sometimes higher for well-positioned smaller units.
The main characteristic these high-yield neighborhoods in Alicante share is that they serve year-round local renters rather than lifestyle seekers, meaning purchase prices haven't been inflated by beach premiums or foreign buyer competition.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Alicante.
Where are the lowest-yield areas in Alicante as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Alicante are Playa de San Juan, Cabo de las Huertas, and Vistahermosa, where lifestyle premiums push property prices well above what rents can support.
In these low-yield areas, gross rental yields typically fall in the 4.0% to 5.0% range, sometimes even lower for premium seafront properties with the highest price tags.
The main reason yields are compressed in these Alicante neighborhoods is that buyers pay substantial premiums for beach access, views, and prestige, but renters aren't willing to pay proportionally higher rents for those same amenities.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Alicante.
Which areas have the lowest vacancy in Alicante as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Alicante are Ensanche-Diputacion, Benalua, and Centro, all of which offer strong transport links and everyday convenience.
In these low-vacancy areas, landlords typically experience vacancy rates in the 2% to 4% range, meaning well-priced units rarely sit empty for more than a few weeks between tenants.
The main demand driver keeping vacancy low in these Alicante neighborhoods is walkability and access to services, schools, and public transport, which makes them attractive to the largest pool of year-round renters.
The trade-off investors face when targeting these low-vacancy areas in Alicante is that the same desirability that attracts renters also attracts buyers, pushing purchase prices up and moderating gross yields compared to less central locations.
Which areas have the most renter demand in Alicante right now?
The top three neighborhoods currently experiencing the strongest renter demand in Alicante are Playa de San Juan, Centro, and Benalua, each attracting renters for different but equally compelling reasons.
In these high-demand areas, the typical renter profile includes young professionals priced out of buying, lifestyle-focused tenants seeking beach access or walkability, and families looking for well-connected neighborhoods with good schools.
In these popular Alicante neighborhoods, well-priced rental listings typically get filled within two to four weeks, and particularly attractive units in Playa de San Juan or Centro can find tenants even faster.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Alicante.
Which upcoming projects could boost rents and rental yields in Alicante as of 2026?
As of early 2026, the top three upcoming projects expected to boost rents in Alicante are the Port of Alicante congress center (construction expected to start spring 2026), the TRAM modernization and expansion plan (2026 to 2030 framework), and ongoing waterfront redevelopment around the port area.
The neighborhoods most likely to benefit from these projects include Centro and Ensanche-Diputacion near the port congress center, and Playa de San Juan, PAU 5, and Albufereta along the improved TRAM corridors.
Investors might realistically expect rent increases of 3% to 8% in affected neighborhoods once these projects are completed, though the actual impact will depend on execution timelines and how quickly improved connectivity translates into tenant demand.
You'll find our latest property market analysis about Alicante here.
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What property type should I buy for renting in Alicante as of 2026?
Between studios and larger units in Alicante, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments generally outperform larger units in Alicante when it comes to pure rental yield, though larger units often provide more stable occupancy with longer-staying tenants.
Studios in Alicante typically deliver gross yields in the 6% to 7.5% range (roughly 72 to 90 euros per square meter annually, or 78 to 98 USD, or 72 to 90 EUR), while larger two to three bedroom units usually land between 5% and 6% gross.
The main factor explaining why smaller units outperform in Alicante is that rent per square meter decreases as unit size increases, while the pool of single renters and couples looking for compact apartments remains strong year-round.
One scenario where larger units become the better investment in Alicante is when you're targeting families priced out of buying, who tend to stay for years and reduce turnover costs, ultimately boosting your net yield despite a lower gross figure.
What property types are in most demand in Alicante as of 2026?
As of early 2026, the most in-demand property type in Alicante's rental market is the well-located one to two bedroom apartment with modern features like good natural light, elevator access, and air conditioning.
The top three property types ranked by current tenant demand in Alicante are compact apartments near the beach or TRAM lines, two to three bedroom family apartments in well-connected neighborhoods, and modern flats in Playa de San Juan and PAU 5 for lifestyle renters.
The primary demographic trend driving this demand pattern in Alicante is the growing number of households priced out of home ownership, combined with lifestyle-seeking domestic and foreign renters attracted to the Costa Blanca's climate and connectivity.
One property type currently underperforming in demand and likely to stay that way in Alicante is the unrenovated older apartment without elevator or air conditioning, which struggles to compete even at lower price points in a market where tenants have options.
What unit size has the best yield per m² in Alicante as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Alicante is between 30 and 55 square meters, which typically corresponds to studios and compact one-bedroom apartments.
For this optimal unit size in Alicante, the typical gross rental yield runs between 6% and 7.5% per year, translating to roughly 13 to 15 euros per square meter monthly (about 14 to 16 USD or 13 to 15 EUR).
The main reason larger units have lower yield per square meter in Alicante is that renters don't pay proportionally more for extra space, while very small studios can sometimes be too niche to attract consistent demand, making the 30 to 55 square meter range the sweet spot.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Alicante.
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 costs cut my net yield in Alicante as of 2026?
What are typical property taxes and recurring local fees in Alicante as of 2026?
As of early 2026, the estimated annual IBI property tax for a typical rental apartment in Alicante ranges from approximately 400 to 900 euros per year (about 435 to 980 USD or 400 to 900 EUR), depending on the property's cadastral value.
Beyond IBI, landlords in Alicante should also budget for community fees (typically 40 to 120 euros per month, or 520 to 1,560 euros annually) and municipal waste charges (around 100 to 250 euros per year), which adds up to a meaningful recurring cost.
Combined, these taxes and local fees in Alicante typically represent between 8% and 15% of gross rental income, with the percentage higher for lower-rent properties where fixed costs take a bigger proportional bite.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Alicante.
What insurance, maintenance, and annual repair costs should landlords budget in Alicante right now?
The estimated annual landlord insurance cost for a typical rental apartment in Alicante runs between 150 and 350 euros per year (about 165 to 380 USD or 150 to 350 EUR), with higher premiums for larger properties or those with coastal exposure.
For maintenance and repairs, landlords in Alicante should budget approximately 0.8% to 1.5% of the property's value annually, which works out to roughly 800 to 2,000 euros per year (870 to 2,180 USD or 800 to 2,000 EUR) for a typical 100,000 to 150,000 euro apartment.
The type of repair expense that most commonly catches Alicante landlords off guard is air conditioning replacement or major plumbing work, both of which become more frequent in older buildings and can easily cost 1,000 euros or more in a single incident.
In total, landlords in Alicante should realistically budget between 1,000 and 2,500 euros annually (about 1,090 to 2,720 USD or 1,000 to 2,500 EUR) for the combined cost of insurance, routine maintenance, and a reserve for unexpected repairs.
Which utilities do landlords typically pay, and what do they cost in Alicante right now?
In standard long-term rentals in Alicante, tenants typically put electricity and internet in their own name, while landlords more commonly cover community services through the community fee and sometimes water, depending on the building setup and lease terms.
When landlords do pay for water in Alicante, the monthly cost typically runs between 15 and 40 euros (about 16 to 44 USD or 15 to 40 EUR) depending on consumption, based on the official tariff structure published by the local utility provider.
What does full-service property management cost, including leasing, in Alicante as of 2026?
As of early 2026, full-service property management in Alicante typically costs between 6% and 10% of monthly rent for ongoing management, which translates to roughly 50 to 100 euros per month (about 55 to 110 USD or 50 to 100 EUR) for a typical apartment renting at 800 to 1,000 euros.
On top of ongoing management, the typical leasing or tenant-placement fee in Alicante runs between 50% and 100% of one month's rent, or sometimes a flat fee of 400 to 800 euros (about 435 to 870 USD or 400 to 800 EUR) depending on the agency and property type.
What's a realistic vacancy buffer in Alicante as of 2026?
As of early 2026, landlords in Alicante should set aside approximately 4% to 8% of annual rental income as a vacancy buffer, which corresponds to roughly two to four weeks of lost rent per year in a normal market.
In practice, landlords in Alicante with correctly priced units in strong micro-areas often experience just two to three weeks of vacancy annually, while those in weaker locations or with overpriced listings might see four to six weeks or more between tenants.
Buying real estate in Alicante can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Alicante, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| idealista Rent Data (Alicante) | It's Spain's largest real estate portal and publishes a transparent, regularly updated time series based on listing data. | We took the latest euro per square meter asking rent for Alicante (December 2025) as the rent input for our yield calculations. We treat it as market asking rent and cross-check it against other indicators of market tightness. |
| idealista Sale Price Data (Alicante) | Same methodology family as the rent series, giving a consistent and comparable euro per square meter purchase price benchmark. | We used the December 2025 asking sale price as the price input for gross yield and rent-to-price ratio. We also show how results change when using the city-only subpage figure instead of the broader municipality rollup. |
| INE Reference Index of Housing Rentals | INE is Spain's official statistics agency, and this index is literally the legally defined reference for rent updates under the Housing Law framework. | We used it to frame early 2026 rent-update conditions and explain why rent growth can diverge from CPI. We use it as a policy and market context input rather than a direct yield calculator. |
| MIVAU SERPAVI Rental Reference System | It's the central government's official rental reference tool and dataset for Spain. | We used it as a cross-check that Alicante rents sit within a broader official reference framework. We also use it to explain why neighborhood-level rents can differ sharply inside the same city. |
| MIVAU Rental Map | It's the public-facing access point for the official rental reference map. | We use it to point readers to an official way to sanity-check a specific flat's rent versus reference ranges. We also use it as a methodology backstop when discussing micro-areas and unit characteristics. |
| Banco de España Housing Market Paper | The central bank is a high-trust source for macro housing indicators and definitions. | We used it to ground the discussion of yields and affordability in Spain-wide fundamentals like credit, prices, and market structure. We use it to keep our Alicante story consistent with the national picture. |
| INE House Price Index (IPV) | It's the official methodology hub for Spain's house price index series. | We use it to explain what official price indicators measure, comparing transaction-based indices versus asking prices. We use it as triangulation to avoid relying only on listing portals. |
| Colegio de Registradores Real Estate Report | Registrars sit on transaction records, so their price and activity stats are grounded in real deals. | We use it to triangulate that prices and activity are rising without depending purely on asking prices. We also use it for context on buyer mix, which matters for understanding what's common in Spain. |
| Tinsa Alicante Price Snapshot | Tinsa is a major Spanish appraisal and research house with a long-running housing price methodology. | We use it as a second price lens based on valuations and market tracking to bracket the idealista asking-price number. We keep our yield estimate conservative when different sources disagree. |
| Fotocasa Profitability Analysis | Fotocasa is a major portal with a dedicated research arm and consistent quarterly reporting. | We use it as an external benchmark for what typical gross yields look like in Spain in late 2025. We use it to validate that our Alicante estimate sits in a plausible national band. |
| Ayuntamiento de Alicante IBI Announcement | It's the city's own official communication about local property tax policy. | We use it to support that recurring municipal tax pressure is easing into 2026, which is helpful for net yield. We still model IBI as a range because your bill depends on cadastral value and exact ordinance details. |
| Aguas de Alicante Tariffs | It's the local utility's published tariff structure, the thing you actually get billed on. | We use it to anchor landlord-paid utilities when rentals include water or community services. We keep the cost impact small in the net yield model unless the landlord explicitly pays utilities. |
| CNMC Energy Regulator Data | CNMC is the national regulator, so it's a strong source for energy market statistics and regulatory cost components. | We use it to justify why electricity-related costs can swing year to year, which is relevant if you include utilities. We don't treat it as a bill calculator, just an authoritative market backdrop. |
| Alacant Extra TRAM Coverage | It summarizes the Generalitat and FGV investment plan that affects real commutes and neighborhood desirability. | We use it to identify infrastructure themes that can lift rents in connected micro-areas, especially along TRAM corridors. We treat it as a project signal rather than a precise rent forecast. |
| Cadena SER Congress Center Report | It reports a concrete timeline and the relevant public authority, the Port Authority, behind the project. | We use it as a near-term catalyst for demand around the port and central areas if construction starts as planned in spring 2026. We keep the yield impact modest because projects can slip. |
| Cadena SER Foreign Buyer Report | It cites transaction context and highlights Alicante's unusually high foreign share in a mainstream outlet. | We use it to explain why purchase prices can rise faster than local wages, which compresses yields. We treat it as a "why Alicante is special" factor rather than a direct yield input. |
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