Market positions: who is ahead?
According to data for the first quarter of 2024, Andalucía topped the list in terms of number of transactions, reaching 28,390 sales. Valencia, home to Alicante, ranked second with 25,094 sales, while Catalonia, with its capital Barcelona, rounded out the top three with 24,238 sales.
Alicante, with 12,807 sales in the first quarter, showed a significant growth of 20.2% compared to the previous quarter. The main reasons why the city is behind these regions are related to scale and economic activity: Andalusia and Catalonia are the largest regions in Spain, attracting significant investment from both local and international buyers, while Valencia, which includes Alicante, has a more developed infrastructure and a broader market.
Reasons for Alicante’s popularity
Alicante continues to be an attractive real estate destination due to a combination of several factors. Firstly, the climate – mild winters and warm summers make the region popular with northern Europeans seeking permanent residency or the purchase of a second home. Secondly, the Costa Blanca region, which includes Alicante, is famous for its beaches and resorts, making it a popular destination for investment in tourist real estate.
The growth of real estate prices in Alicante also confirms the high demand. In 2024, new housing prices increased by 12.3% and secondary housing prices by 3.9%. These data indicate that despite the rise in prices, the region continues to attract buyers, due to the limited supply and high demand for quality housing.
Projections for late 2024 and early 2025
The upward trend in sales and prices in Alicante is expected to continue until the end of 2024 and into 2025. The impact of continued growth in demand from foreign buyers, especially retirees from Northern European countries, will keep the level of activity in the market high. At the same time, stabilizing interest rates and moderate economic growth in Spain will also contribute to maintaining this trend.
However, there may be a slight downturn in market activity due to the gradual saturation of demand and reaching a certain ceiling, which may limit the growth of prices. Nevertheless, Alicante will remain one of the key regions for real estate investment in Spain, especially in the segment of tourist and luxury real estate.
In conclusion, Alicante demonstrates a strong position in the Spain real estate market, second only to the largest regions of the country. The region is expected to continue to attract a significant number of transactions in the coming years, while maintaining stable price growth.