The Alicante real estate market has rebounded strongly after the pandemic, with sales reaching a 15-year high in 2022.
About 60,000 transactions were concluded, of which the majority were by foreign buyers, mostly from Europe. The focus was on the secondary residential market, with prices rising in both the capital, Alicante, and the tourist areas of the province.
The lack of new construction was a negative factor, but this is partly due to the lack of free land for development.
The Chamber of Commerce of Alicante predicts that the housing market will slow down in 2023, due to the high cost of new buildings and their shortage. However, they expect prices to continue to rise, albeit at a slower pace.
The tourism sector is another major driver of the Alicante economy, and it has already recovered to pre-pandemic levels. In 2023, it is expected to generate 60 million overnight stays.
The Alicante-Elche International Airport alone could see up to 13 million passengers pass through its doors. This will have a positive impact on the rental real estate market and tourist/resort housing.
The unemployment rate in Alicante has also fallen, down to 15.2% in 2022. This is still high, but it is an improvement on the 15.7% that were observed in 2019.
Overall, the economic recovery in Alicante is good news for the region. The strong real estate market and the recovery of the tourism sector are both positive signs.
- The main reason for the strong rebound in the real estate market is the high demand from foreign buyers. This is due to a number of factors, including the relatively low prices in Alicante compared to other European cities, the good weather, and the proximity to the beach.
- The lack of new construction is a major obstacle to the further growth of the real estate market. This is due to a number of factors, including the high cost of land, the strict planning regulations, and the shortage of skilled labor.
- The tourism sector is expected to continue to grow in 2023. This is due to the increasing popularity of Spain as a tourist destination, the recovery of the European economy, and the low cost of flights to Alicante.
- The unemployment rate is expected to continue to fall in 2023. This is due to the strong economic growth in the region and the creation of new jobs.
