Alicante housing prices surge beyond national averages

Housing prices in the province of Alicante continue to climb, surpassing the national average growth rate.

This news comes despite a decline in sales since the latter half of last year.

The demand for second homes, coupled with limited supply in certain areas, has contributed to a lesser slowdown in coastal regions, where the international market plays a significant role.

According to the latest report by appraiser Tinsa, Alicante ranks fourth among districts with the highest price increases over the past year.

The average square metre value in the province at the end of the first quarter stood at €1,453, marking a 7.8 per cent increase compared to the same period in 2023.

This growth rate is exceeded only by Malaga, the Balearic Islands, and Guadalajara.

Moreover, it more than doubles the national average increase of 3.3 per cent.

Cristina Arias, Director of Tinsa’s studies service, notes that the slower price deceleration in tourist areas aligns with the profile of second-home buyers with greater purchasing power, whose decisions have been less affected by high inflation and interest rates.

Conversely, areas reliant on local buyers have experienced a more noticeable impact from rising mortgages.

Quarterly data shows that prices remained relatively stable in 34 provinces, including Alicante, where the increase was contained but still present, rising by 1.4 per cent compared to the previous quarter’s 2.7 per cent.

In terms of municipalities, Orihuela saw the highest increase in square metre prices over the past year, rising by 11.3 per cent to €1,559.

Torrevieja followed suit with a 9.2 per cent increase to €1,494.

Elche witnessed a 7.8 per cent increase to €1,262 per square metre, while prices in Alicante city rose by 7 per cent to €1,609, and in Benidorm by 5.6 per cent to €1,773.