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
Where are the best places to invest in Alicante right now? Is the city center still the top pick, or are areas like Playa San Juan, El Campello, and Altea gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the region. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Alicante and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Albufereta is gaining attention for its scenic views and affordable prices, offering strong long-term investment potential compared to other coastal areas
Albufereta is catching eyes for its stunning views and budget-friendly property prices.
Back in 2023 and 2024, the area saw a notable rise in property sales, thanks to its beautiful beaches and natural charm. The median price for flats was about €89,000, which is a steal compared to hotspots like Costa del Sol or Costa Brava. This affordability is a big draw for both residents and investors.
During those years, the average price per square meter in Albufereta was €1,477, much lower than Costa del Sol's €2,193. This price difference attracted international buyers eager for investment opportunities. Experts and media from that time were buzzing about the potential for long-term growth in Albufereta's property market.
The local government chipped in by boosting tourism and infrastructure, making the area even more appealing. These improvements enhanced public amenities and quality of life, pulling in more buyers and renters. Real estate trends showed a steady rise in property values, with rental yields in Albufereta outpacing other coastal areas.
Albufereta's charm isn't just in its prices; it's in the lifestyle it offers. The area is known for its laid-back vibe, perfect for those looking to escape the hustle and bustle. Plus, the community is growing, with more international residents adding to its vibrant culture.
For anyone considering a property purchase, Albufereta offers a unique blend of affordability, beauty, and investment potential. It's a place where you can enjoy the best of coastal living without breaking the bank.
Sources: Alegria Realestate, IAD Overseas News, Alegria Realestate
2) Alicante’s city center is booming with investor interest for its historic charm and modern amenities, driving up property values
Alicante's city center is buzzing with property investors eager to tap into its growing appeal.
In just under a year, property prices have jumped by 17.44%, with the average price per square meter now at €2,316. This surge reflects a vibrant real estate market that's catching everyone's eye.
What makes Alicante even more enticing is its luxury real estate scene. With stunning coastal views and a delightful Mediterranean climate, it's no wonder the city is becoming a favorite among high-end buyers. Media outlets are calling it a rising star, and 44% of luxury property investments are from international buyers, adding to the buzz.
Tourism is another big draw. In 2024, over 10 million international visitors flocked to Alicante, marking a 16.3% increase. This influx not only boosts the local economy but also makes the city center a hot spot for property investment.
Investors are particularly interested in Alicante's mix of historic charm and modern amenities. The city center offers a unique blend that appeals to both traditional and contemporary tastes, making it a prime location for those looking to invest in property.
With rising property values, a booming tourism sector, and international interest, Alicante's city center is a magnet for savvy investors looking to capitalize on its potential.
Sources: Indomio, Travel and Tour World, 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) Gran Alacant is in demand for its airport and beach proximity, ideal for short-term rental investments
Gran Alacant is quickly becoming a hotspot for short-term rental investments thanks to its prime location near Alicante-Elche Airport and stunning beaches.
In 2024, Alicante-Elche Airport welcomed 17.2 million passengers, a significant jump of 16.8% from the previous year. This makes it a major entry point for international tourists, offering easy access to Gran Alacant for those seeking quick and convenient getaways.
The Costa Blanca region, home to Gran Alacant, attracted over 10 million international visitors between January and October 2024. This was a 16.3% increase from the previous year, leading to a €13 billion boost to the local economy. Such a surge in tourism naturally fuels the demand for short-term rentals, making it a lucrative opportunity for investors.
Gran Alacant's short-term rental market has shown remarkable resilience. In 2024, occupancy levels stabilized and revenue per available rental saw positive growth. During peak seasons, occupancy rates often exceed 80%, highlighting its appeal as a prime spot for rental investments.
The area's mild climate and ongoing development of infrastructure and amenities make it attractive year-round. This ensures a steady demand for accommodations, drawing visitors consistently and supporting the rental market.
Sources: Travel and Tour World, Euro Weekly News, AirDNA
4) San Juan Playa is booming with high rental yields from tourists and locals seeking beachfront properties
San Juan Playa is a real estate hotspot thanks to its high rental yields.
In October 2024, rental prices hit €15.64 per square meter, showing a 20.96% jump from the previous year. This makes it a magnet for investors chasing high returns.
The area's charm isn't just about numbers; it's also about the people flocking there. In 2024, the Alicante region, home to San Juan Playa, saw over 10 million international visitors, up by 16.3% from 2023. These tourists spent more than €13 billion, boosting the local economy.
Property prices are climbing too, with a 23.66% increase in October 2024 compared to the previous year. This surge is driven by both tourists and locals eager for beachfront living.
Short-term rentals are thriving, with occupancy rates averaging around 80%, highlighting the area's appeal. This demand is a clear sign of San Juan Playa's desirability.
Sources: Travel and Tour World, Indomio
5) Santa Pola is thriving with its fishing village charm and modern developments, offering balanced market conditions and strong rental income potential
Santa Pola is thriving by blending its charming fishing village vibe with modern developments.
In 2024, the average sale price for homes in Santa Pola jumped by 5.09%, reaching €2,521 per square meter. This rise shows a growing demand and a healthy market. The town's unique mix of old-world charm and new amenities is drawing in buyers.
Holiday rentals are booming too, with rental yields up by 22.12% in 2024 compared to 2023. The average monthly rent per square meter hit €10.93, showing a strong rental market. Areas near the beach or luxury golf resorts are especially popular, thanks to a steady stream of tourists.
Santa Pola's ongoing urban development plans are set to make it even more appealing. Improved transport links and more international flights are expected to boost tourism and property investment. The local economy is stable, and the region offers a high standard of living, making it attractive for both residents and investors.
These factors contribute to Santa Pola's balanced market and its potential for generating good rental income. The town's charm, combined with modern conveniences, creates a unique opportunity for property buyers.
Sources: Indomio, Euro Weekly News, Asset Folio
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6) Mutxamel is gaining interest for its peaceful setting and closeness to Alicante, with affordable properties and strong appreciation potential
Mutxamel is becoming a hot spot for property buyers due to its peaceful environment and proximity to Alicante city.
As property prices in Alicante city rise, more buyers are looking at nearby areas like Mutxamel, which is driving up demand. In October 2024, the average price for residential properties in Mutxamel was €2,340 per square meter, marking a significant increase of 43.82% from the previous year. This trend highlights the growing interest in the area.
People are drawn to Mutxamel for its serene atmosphere and natural beauty, making it a top choice for those seeking a high quality of life. Compared to Alicante city, property prices in Mutxamel are more affordable, offering a great opportunity for buyers who want to balance cost with lifestyle.
New infrastructure developments are also making Mutxamel more appealing. The region is working on establishing aerial drone highways, which will enhance connectivity and improve the delivery of services and goods, including medical supplies. These advancements are part of local government efforts to promote Mutxamel as a prime residential area.
Residents often praise the quality of life in Mutxamel, emphasizing its peaceful suburban charm and easy access to Alicante city. This combination of tranquility and convenience is a major draw for potential buyers.
With ongoing improvements and a strategic location, Mutxamel offers affordable properties with good appreciation potential, making it an increasingly desirable market for homebuyers.
Sources: Indomio, Unmanned Airspace
7) Benalúa is gaining attention with its urban renewal projects boosting neighborhood appeal and property prices
Benalúa is quickly becoming a hot spot in Alicante due to its ongoing urban renewal projects.
In 2023, the real estate market in Alicante saw a 6% increase in home sales, with Benalúa playing a big part in this boom. This uptick in property sales shows a growing interest in the neighborhood, making it a prime area for potential buyers.
One of the driving forces behind Benalúa's rise is the substantial investment in urban renewal. Metrovacesa, a well-known real estate developer, is pouring resources into the area. Their project, Residencial Thalassa, is a 12 million euro venture to build 47 new homes, boosting the neighborhood's charm and property values.
The local government is also on board, actively working to improve the quality of life in Benalúa. They're rolling out new infrastructure like parks and public transport links, making the area more appealing. These efforts are part of a broader push to enhance sustainability and livability.
Metrovacesa's projects are not just about new buildings; they focus on sustainability features too. Think pre-installed charging systems for electric vehicles and exclusive bicycle parking areas, which cater to the eco-conscious buyer.
All these factors are making Benalúa a desirable location for those looking to invest in property. The combination of urban renewal, government support, and sustainable development is transforming the neighborhood into a sought-after destination.
Sources: Bravos Estate, Metrovacesa
8) Cabo de las Huertas is a prime spot for luxury real estate with exclusive villas and high-end apartments promising strong capital growth
Cabo de las Huertas is a hot spot for luxury real estate, and it's easy to see why.
In Alicante, luxury homes are priced between €3 and €10 million, with the highest cost per square meter at around €5,085. This shows that investing here could be quite profitable. The area is buzzing with international interest, which has sped up transactions and led to new construction projects. In 2023, the Valencian Community, including Alicante, topped home sales per population, showing just how lively the real estate scene is.
Land is scarce in Cabo de las Huertas, which means property prices are likely to keep rising. This limited availability, along with its closeness to luxury hotels and golf courses, makes it a magnet for wealthy buyers. The Costa Blanca region, where Cabo de las Huertas is located, offers a fantastic climate and lifestyle, drawing in those looking for a luxurious living environment.
Media often highlights the area's exclusivity, making it even more attractive to luxury buyers. The combination of a great climate, high-end amenities, and limited land makes Cabo de las Huertas a prime choice for those seeking luxury real estate. The area's appeal is further enhanced by its proximity to high-end amenities and services, such as luxury hotels and golf courses, which are a big draw for affluent buyers.
With all these factors, it's no wonder Cabo de las Huertas is a prime market for luxury real estate. The area's exclusivity and desirability are often highlighted in media coverage, increasing its attractiveness to luxury buyers.
Sources: Euro Weekly News, Pure Living Properties
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) El Campello is attracting buyers with its potential for property appreciation and new infrastructure developments
El Campello is becoming a hot spot for property buyers, and there are some compelling reasons for this trend.
First off, property prices have been climbing. Back in October 2024, the average price for residential properties hit €2,769 per square meter, marking a 7.08% increase from December 2023. This kind of growth signals that the area is becoming more desirable.
Another reason is the surge in property transactions. While exact numbers aren't available, the Spanish real estate market is buzzing with strong demand and limited supply. This has led to faster home price growth, especially for new builds, suggesting that more people are eyeing homes in El Campello.
Population growth is also a key factor. El Campello's population has jumped from 18,366 residents in 2000 to 28,349 in 2019. During the summer, the population even triples due to tourist activity, reaching over 80,000 residents. This influx of people, both permanent and temporary, indicates a thriving community that can attract more buyers.
Infrastructure improvements and new developments are making El Campello even more appealing. The town is investing in better roads and public transport, which is a big draw for potential buyers looking for convenience and accessibility.
With these factors in play, it's no wonder El Campello is gaining attention for its potential property appreciation. The combination of rising prices, increased transactions, and a growing population makes it a promising spot for investment.
Sources: Indomio, Alegria Premium, Euro Weekly News, CaixaBank Research
10) Torrevieja’s La Mata is gaining interest for its expansive beaches and affordable property prices, appealing to investors and retirees
La Mata in Torrevieja is catching eyes for its expansive beaches and competitive property prices.
In 2023, 7,144 homes were sold in Torrevieja, and the trend continued with 1,667 properties sold in the first quarter of 2024. This shows a strong demand for real estate, making it a hot spot for potential buyers.
La Mata's beaches are a major draw, known for their natural beauty and easy access. These sandy stretches are not just for tourists; they attract retirees who crave a sunny, relaxed lifestyle. The local government has invested in infrastructure, making these beaches even more appealing and accessible.
Property prices in La Mata are another reason for its growing popularity. As of October 2024, the average price was €2,299 per square meter, which is quite competitive compared to other areas in Torrevieja. This affordability is a magnet for investors seeking value and retirees looking for a budget-friendly coastal life.
Media outlets often highlight Torrevieja's charm, focusing on its favorable climate and beautiful beaches. These features, along with competitive property prices, make La Mata particularly attractive.
Whether you're an investor eyeing growth or a retiree dreaming of coastal living, La Mata offers a compelling mix of affordability and lifestyle.
Sources: Cool Casas, Idealista, Indomio
11) Orihuela Costa is thriving with international buyers from Northern Europe, driving up property demand and prices
Orihuela Costa is a hotspot for international buyers, especially from Northern Europe.
Over the past few years, there's been a noticeable trend of increasing property demand from countries like the UK, Germany, and Scandinavia. This surge in interest has led to a steady rise in property prices, making Orihuela Costa a sought-after location.
The property market here isn't just thriving in isolation; nearby towns are also experiencing regional growth. This broader trend highlights the area's growing appeal, with more people looking to invest in this sunny part of Spain.
Surveys and real estate analyses consistently show that Orihuela Costa is a preferred destination for Northern European expatriates. The allure of its Mediterranean lifestyle, combined with a pleasant climate and well-established amenities, makes it an attractive place to settle down.
There's also a noticeable shift towards sustainable housing and luxury properties, which further underscores the area's popularity. This trend is particularly appealing to those looking for a blend of comfort and eco-friendly living.
With its vibrant community and appealing lifestyle, Orihuela Costa continues to draw in buyers looking for a slice of Mediterranean paradise. The ongoing interest from international buyers is a testament to its enduring charm.
Sources: Ibero Homes, 360 Home Tour, Vincent Real Estate
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12) Villajoyosa is attracting interest with its vibrant coastal properties and booming tourism, enhancing rental opportunities
Villajoyosa is becoming a hotspot for its vibrant coastal homes and booming tourism scene.
In 2023, Spain welcomed a surge of international tourists, and 2024 is expected to see even more visitors. This influx is driving up the demand for short-term rentals, as travelers flock to charming spots like Villajoyosa.
The local government is actively boosting tourism with events like the "Estiu al Riu" craft market, which drew in thousands. Villajoyosa is also upping its game with new attractions like the Chocolate Valor Museum and lively cultural events such as the Moors and Christians festival. These initiatives showcase the town's rich cultural and historical charm, pulling in more tourists each year.
Villajoyosa has been dubbed a hidden gem in Europe, which is increasing its allure. The town is pouring resources into infrastructure to meet the rising demand for coastal properties and to enhance the tourist experience. This is key as more international buyers are eyeing Villajoyosa for its coastal living appeal.
With its colorful streets and growing tourism, Villajoyosa is not just a pretty face; it's a smart investment. The town's efforts to improve infrastructure and promote its unique culture are paying off, making it a prime spot for both short-term and long-term rentals.
Sources: CaixaBank Research, Quadratia, CBSAGE
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.