Summary of the First Semester 2023: Alicante’s Real Estate Market — Discover the Trends!
In the second quarter of the year, the province of Alicante has maintained its position as one of the most attractive destinations for buying homes in Spain. With a total of 12,622 transactions recorded during this period, the province ranks third nationwide in terms of real estate sales.
One of the key factors behind the success of the real estate market in Alicante is strong foreign demand. According to the data collected, 45% of buyers come from abroad. This figure reflects the interest and confidence that international investors have in this region. Alicante is only behind Madrid and Barcelona in terms of real estate transaction volume. This indicates that the province remains a very popular destination for both those looking for a second home and those wanting to invest in properties.
The real estate market is constantly growing, with a 16% increase in sales compared with last year. While signs of cooling are beginning to show—such as the slight 2.8% drop between April and June—prices are still on the rise.
In particular, newly built homes are seeing a significant increase in value. This quarter, the price per square meter is up by 100 euros compared with the previous one due to high demand and a lack of stock.
The secretary general of the Alicante Provincial Association of Real Estate Developers, Jesualdo Ros, has downplayed the aforementioned decline, seeing it as something normal. In his view, the past two years have been spectacular in terms of demand—so much so that we’ve reached a point where there isn’t enough stock available.
Indeed, Ros points to the significant influence that foreign buyers have on the real estate market. In particular, he highlights the Belgians, Dutch, and Germans as key players in the purchase of new properties, while Britons are the main buyers of second-hand homes.
He also draws attention to the growing interest from Ukrainian clients and other nearby countries, such as Poland, who are playing an important role in market demand. According to Ros, this increase in demand is linked to the armed conflict in the region, as many people are looking to leave the affected areas. It’s important to note that this trend shows how geopolitical factors can have a significant impact on the real estate market, driving changes in demand and attracting buyers from different parts of the world.
The lack of stock referred to by Jesualdo Ros is a factor that is contributing to higher prices for newly built homes. In the last quarter, prices rose by 6.1%, reaching 2,181 euros per square meter, while used housing saw an increase of 1.5%, standing at 1,541 euros per square meter. Taken together, this amounts to an overall 1.6% increase, with an average of 1,623 euros per square meter. Alicante ranks fourteenth among Spanish provinces where prices are highest.
At the top is Guipúzcoa, with an average of 3,423 euros per square meter, followed by Madrid at 3,299; the Balearic Islands at 3,214; and Barcelona at 2,842. At the bottom are Jaén at 740; Cuenca at 691; and Ciudad Real at 645.
With growing interest from international clients, demand in the Alicante region is at the very top. In second place is Santa Cruz de Tenerife, with an impressive 38.01% of sales. Málaga follows closely with a 32.02%. All these areas stand out for their tourism potential and privileged climate.
In short, the province of Alicante continues to stand out as a major real estate market thanks to its high foreign demand and its position among the leading Spanish provinces by number of real estate transactions during the second quarter of the year.
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