Alicante’s housing market hits a Snag: Sales drop as prices soar

The housing market in Alicante is experiencing a sharp decline in sales of used homes due to a shortage of supply and rising prices.

Official statistics reveal that transactions in this sector have dropped by 10 per cent so far this year, amounting to just 20,000 sales.

Stock Availability

This downturn is happening as stock availability dwindles, and prices continue to surge, with a year-on-year increase of 14 per cent.

In contrast, the market for new flats is growing, although the number of transactions, totalling 4,500, remains far below those in the used housing sector.

INE Data

Data from the National Institute of Statistics (INE) shows that overall home sales in Alicante have decreased by approximately 5 per cent compared to last year, with 24,637 transactions recorded.

The decline is largely driven by the used housing market, where 2,067 fewer sales were registered, a situation that industry insiders attribute to both limited supply and escalating prices.

Property Prices

Real estate portal Fotocasa reports that property prices in the province have risen by 13.9 per cent year-on-year, with the average cost now standing at €2,000 per square metre.

In Alicante city, the price per square meter has reached €2,459.

Housing Shortage

María Martos, Director of Studies at Fotocasa, points to additional factors contributing to the low supply and rising prices, such as a shortage of new housing caused by restrictions on urban development, limited land availability, and high construction costs.

These issues, according to the director, have created a pricing tension that is difficult to alleviate.