Alicante province & South Costa Blanca report 2025

Sales

There were 56,687 home sales in Alicante province (home to the South Costa Blanca) in 2025, down 1% year-on-year, but still 29% above the ten-year average and 79% higher than ten years ago, which underlines the depth and resilience of the market despite a slight annual pause, as illustrated in Fig. 1-1.

Foreign buyers accounted for 27,116 purchases, down 6% year-on-year, with 8,703 bought by foreigners resident in Spain and 18,413 by foreign non-residents. Expat demand fell by 1% on the year, while FNR demand dropped by 9%. Over ten years, however, purchases by expats have risen by 90% and by FNR buyers by 51%, confirming the enduring importance of international demand in Alicante, as illustrated in Fig. 1-2.

Foreign buyers represented 49% of all home sales in Alicante in 2025, down from 52% a year earlier. Even with that decline, this remains an exceptionally high share by Spanish standards, highlighting how dependent the local market is on overseas demand and particularly on second-home and investment buyers, as illustrated in Fig. 1-3.

There were 6,502 new-build home sales in the period, broadly flat year-on-year, down by less than 1%. That was still 30% above the ten-year average and 76% higher than ten years earlier, indicating that the new-build segment remains structurally stronger than in the past, as illustrated in Fig. 1-4.

Looking just at sales in the South Costa Blanca municipalities*, there were 18,108 home sales in 2025, down 4% year-on-year. Even so, activity remained 19% above the ten-year average and 42% higher than ten years ago, indicating that despite a modest annual slowdown the sub-market is still operating at a historically elevated level, as illustrated in Fig. 1-5.

Prices

According to figures from the Spanish Housing Ministry, the average price of homes sold in Alicante in 2025 was €190,961, up 9% on an annualised basis. The average price of newly-built homes sold was €299,642, up by just 0% year-on-year, which points to much firmer price growth in the overall market than in new homes during the period, as illustrated in Fig. 2-1.

Over ten years, the price index for all homes in Alicante rose from 100 to 156, while the index for new homes rose to 172. That means new homes have appreciated more than the market as a whole over the long term, most likely reflecting a mix of higher construction costs, limited supply of well-located land, and strong demand for modern product in coastal and lifestyle locations. Over five years, however, all-property prices rose by 39%, compared with 35% for new homes, suggesting the resale market has recently been catching up, as illustrated in Fig. 2-2.

Mortgages and financing conditions

There were 23,786 new mortgages signed in Alicante province in 2025, up 24% year-on-year. That was 54% above the ten-year average and 131% higher than ten years earlier, indicating a strong recovery in lending activity and supporting the broader picture of a market still benefiting from improved financing conditions, as illustrated in Fig. 3-1.

The average Euribor in 2025 was 2.22%, down 32% year-on-year. This leaves it well below the ten-year high of 3.86% reached in 2023, but still far above the low of -0.49% seen in 2021. In other words, borrowing conditions improved materially in 2025 compared with the post-tightening peak, even if they were still much less accommodative than in the ultra-low-rate era. The ECB kept its key deposit rate at 2.00% through its February and March 2026 meetings, so policy was on hold going into spring 2026, though markets had started to price in the possibility of future hikes if energy-driven inflation proved persistent. As illustrated in Fig. 3-2, Euribor had already come a long way down from its recent peak, which helped support mortgage demand in the period under review.

Housing starts

There were 8,006 housing starts based on planning approvals in Alicante province in 2025, up 12% year-on-year. This was 39% above the ten-year average and 89% higher than ten years earlier, pointing to a clear expansion in development activity, though new supply still has to keep pace with strong underlying demand in many parts of the province, as illustrated in Fig. 4-1.

Summary

The Alicante housing market in 2025 remained large, internationally driven, and historically strong, even though sales eased slightly from the previous year. Foreign demand continued to play an outsized role, prices kept rising, mortgage lending rebounded sharply, and housing starts increased, all of which suggest a market with solid underlying momentum. The main opportunity lies in sustained lifestyle and overseas demand, while the main risks are continued dependence on foreign buyers, affordability pressures, and uncertainty over future interest rates. Looking ahead, the balance of evidence points to continued resilience, though probably with more moderate growth than in the strongest recent years.

*Municipalities analysed for sales: Elche, Guardamar del Segura, Orihuela, Pilar de la Horadada, Torrevieja