Housing prices in the province of Alicante are set to continue their upward trend, with double-digit increases forecast for this year according to Bankinter experts. This rise is mainly attributed to strong demand from international buyers, who now constitute approximately half of the provincial real estate market.
It is estimated that foreign buyers possess a purchasing power around 80% higher than that of local buyers. This significant difference makes it difficult for the current price escalation to slow down.
During a seminar organized by Bankinter and the Provincial Association of Developers (Provia), it was explained that despite international tensions and the energy shock, which might moderately cool the sector nationally (with an estimated 5% drop in transactions for 2026), prices will continue to rise. Nationally, a 7% increase is expected this year, surpassing economic growth, largely due to a clear lack of supply.
This trend of high prices is projected to persist for the next 3 to 5 years, as the supply shortage is difficult to reverse. It is estimated that Spain currently lacks 700,000 homes, a figure expected to grow by over 150,000 units annually. Meanwhile, the creation of new households stands at around 200,000 per year, with an additional 50,000 from foreign purchases, while new home construction remains stagnant at about 120,000 units annually.
The Valencian Community presents a particularly relevant situation, where demand triples supply. In this context, Alicante is emerging as a market heavily influenced by foreign purchases, accounting for over 50% of transactions. The purchasing power of these buyers, nearly 80% higher than that of domestic buyers, makes it highly probable that housing prices in Alicante will continue their double-digit ascent.
The president of Provia, Pedro Soliveres, emphasized that Alicante maintains a "strong and dynamic" market for both primary residences and residential tourism. The main challenge, according to Soliveres, is to increase supply and ensure the viability of affordable and protected housing through legal certainty, streamlined procedures, and public-private collaboration.
