In a climate of economic uncertainty, many prospective buyers expect property prices in the province of Alicante to fall. However, the latest data show a clearly upward trend in most coastal and urban municipalities.
Strong increases in price per square metre
According to Idealista market reports, the average price per square metre in Alicante reached €2,521/m² in May 2025, representing:
- +2.3% compared to April 2025,
- +5.5% compared to February 2025,
- +15.8% compared to May 2024.
These figures confirm a sustained upward trend since 2021, driven by price pressure in coastal cities, sustained demand, and favorable financing conditions following a drop in interest rates.
What about inland towns?
It's true that some interior municipalities have experienced price corrections. For instance:
- Biar: –7.3% year-on-year decline.
- Orba: –4.7% year-on-year decline.
These decreases are isolated adjustments in areas with less pressure from foreign demand or tourism, and may present investment opportunities for long-term growth or renovation projects.
Why prices are not expected to drop
Industry specialists and organisations such as the Alicante Association of Technical Architects (COAAT) identify several structural factors that prevent a price drop:
- Limited supply: Housing stock fell by about 15% in 2024, the biggest decline since records began.
- Strong international demand: Buyers from Northern and Central Europe continue to be active on the coast.
- Low interest rates: ECB rate cuts and a dip in Euribor make financing more accessible, encouraging purchases.
- High construction costs: Price of labour and materials remains high, restricting new housing development.
- Delays in planning approval: According to PROVIA, planning permissions are delayed, slowing new supply.
Forecast: moderation not decline
Predictions from entities such as CaixaBank Research or BBVA suggest moderated growth in the coming months. However, in sought-after areas like Costa Blanca North, Altea, Moraira, and Jávea, the imbalance between supply and demand indicates that property values will continue to rise, albeit at a steadier pace.
Investing now: a strategic opportunity
At Luxinmo Real Estate, we recommend thorough market analysis and capitalising on current dynamics. With exclusive listings across Costa Blanca and Alicante province, expert legal advice, market insight, and multilingual support, we help clients secure high-potential properties ahead of further price adjustments.
Interested in exploring opportunities? Contact us today to discuss your goals and start your property search.
