Investing in Real Estate in Alicante: The Complete Guide

Published on and written by Cyril Jarnias

Alicante is transitioning from a “secondary bargain” status to a key market in Spanish real estate. The numbers are clear: prices have jumped about 40% in five years in the city, foreign demand accounts for over half of all transactions in the province, and average rental yields hover around 5–6%. The result: investing in Alicante real estate is no longer an exotic bet, but a strategy that more and more European investors are examining very closely.

Good to know:

The appeal of the French real estate market is well established. For a successful investment, it’s crucial to focus on the purchase location, property type, and acquisition method, aiming for a balance between rental yield, security, and capital appreciation potential. A thorough analysis should include prices, rents, up-and-coming neighborhoods, ancillary costs, taxation for non-residents, and long-term (10-year) outlook.

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1. A market on the rise, but still affordable

The underlying trend is hard to ignore: prices are rising, but remain below those of Spain’s major cities and other highly sought-after coasts.

Steady price per square meter increases

Between 2022 and 2026, the price per square meter in Alicante has risen year after year, for both houses and apartments. For houses, the average price increased from €1,765/m² in 2022 to €2,595/m² in 2026. For apartments, from €1,833/m² to €2,717/m² over the same period.

YearHouses – average price €/m²Annual changeApartments – average price €/m²Annual change
20221,765.44–1,833.43–
20231,943.87+10.11%2,013.72+9.83%
20242,177.63+12.03%2,294.78+13.96%
20252,475.75+13.69%2,604.73+13.51%
20262,595.44+4.83%2,716.67+4.30%

The momentum is clear: after several years of double-digit growth, the pace is moderating to around 4–8% per year, with no signs of a sharp reversal. Over the five years through mid-2025, prices in the city have risen by approximately 40%, with a compound annual growth rate of about 5.5%.

176,000-200,000

A standard 80 m² apartment in Alicante sells for between €176,000 and just over €200,000.

Alicante vs. the rest of Spain: a “value coast” rather than speculative

In December 2025, the average price per m² in the city reached €2,508, compared to €2,639/m² nationally. Growth is strong (about +10.7% year-on-year at that date), but it remains driven by structural factors: booming tourism, record passenger numbers at Alicante-Elche Airport (over 18.6 million travelers in 2025), remote work, and foreign retirees.

The Costa Blanca, of which Alicante is the capital, shows an average price around €2,500/m² with an increase of 15.3% in 2025, while the Valencian Community as a whole saw about +18%. In other words, you’re on a very dynamic coast, but still cheaper than the Costa del Sol, with comparable rents and therefore often better yields.

2. Understanding prices by neighborhoods and towns in the province

One of Alicante’s strengths is its wide price range across neighborhoods, allowing for very different strategies: premium seaside, solid city center value, or a bet on catch-up areas.

Within the city: from luxury waterfront to catch-up neighborhoods

Price differences by district are considerable. Some benchmarks for an investment in the city of Alicante:

Neighborhood / Area (city)Average price €/m² (approx. 2025–2026)Indicative annual changeInvestment profile
Playa de San Juan – El Cabo3,400–3,585+15–16%Premium, high demand, solid appreciation, moderate yield
Centro / Centro – Casco Antiguo~3,260–3,375+13–14%Hyper-central, top location for long-term and seasonal rentals
Ensanche‑Diputación~3,100sustained riseBusiness/commercial district, good price-demand balance
Cabo de las HuertasUp to ~5,085n.d.Luxury, high-end villas, capital appreciation focus
Vistahermosa~2,200–2,750+8%“Sweet spot”: modern residential, good upside potential
Benalúa – Benalúa Sur~2,100–2,760+18–24%Revitalizing neighborhood, excellent yield/appreciation mix
San Blas – PAU~2,085–2,556+16–22%Family residential, near center, good yield
Plà del Bon Repòs – La Goleta – San Antón~1,720–2,050+20–22%Transition area, decent yields, revaluation potential
Campoamor – Carolinas – Altozano~1,600–1,850+22–24%More popular market, strong medium-term appreciation lever
Los Ángeles – Tómbola – San Nicolás~1,560+27.5%Most dynamic neighborhood, growth bet
Virgen del Remedio – Juan XXIII~960–1,220+20–27%Bottom price, high gross yield, more popular tenant base

The Playa de San Juan, Cabo de las Huertas, Centro, and Ensanche‑Diputación areas target investors seeking a “blue chip” asset: exceptional location, strong international demand, but generally lower gross rental yield (3.5–4.5% in the very high-end) and higher entry tickets.

Caution:

Some neighborhoods like Los Ángeles, Campoamor‑Carolinas‑Altozano, or Virgen del Remedio offer a low price per square meter and have seen strong recent increases. Their rental yields are often above average, but they attract a more popular tenant profile, which can come with higher rental risk.

Around Alicante: Benidorm, Torrevieja, Calpe, Altea…

Broadening the view to the province, the same logic applies: a few very premium spots (Jávea, Moraira, Altea Hills…) concentrate high prices and wealthy international demand, while certain mid-sized towns show impressive yields.

Town / Area (province)Average price €/m² (approx.)Average reported yieldProfile
Teulada4,405n.d.Very high-end, near Moraira
Jávea3,000–5,000~4.0–4.5%Prime, strong foreign demand, moderate yield
Moraira2,500–4,500~3.7%Luxury market, almost 100% capital appreciation
Calpe~2,800–4,042~4.6%Solid seaside resort, good yield/image mix
Altea2,800–3,731~4.5%Highly sought-after in the high-end, potential +7–9%/year
Benidorm~3,200~6.35%One of the best yield/liquidity combinations on the coast
Torrevieja~2,300–2,667~6.7%Above-average yields, strong tourist demand
Alicante (city)~2,500–2,736~6.0% (province)Pivot market, diversified, good depth
Mutxamel~2,340~6.2%Booming periphery, strong price increase
Gran Alacantn.d.~6.7%Near airport and beaches, ideal for seasonal rental

Two main strategy families emerge: targeting “showcase spots” like Jávea, Moraira, Altea with a wealth-building and long-term appreciation logic, or focusing on towns like Torrevieja, Benidorm, Gran Alacant, and some high-yield inland municipalities (Sax, Crevillente, Albatera…) to maximize profitability, with more day-to-day management.

3. Rental yields: what can you expect in Alicante?

For an investor, price increases alone are not enough: rents need to follow. In Alicante, they have not only followed but often led the increases.

Rent levels and average profitability

In the province of Alicante, the average asking rent is around €11.96/m² per month at the start of 2026. In the municipality of Alicante, it reaches about €13.36/m². Over a few years, the progression is clear: €9.02/m² in 2022, €9.46/m² in 2023, €10.45/m² in 2024, €11.23/m² in 2025, and approximately €12/m² currently.

Concretely, an 80 m² apartment rents for about €960 to €1,000 per month on a long-term basis. Average gross yields range between 5% and 6% at the provincial level, with higher peaks depending on the type of property and area.

Area / PerimeterAverage gross yield (approx.)Comment
Alicante province (overall)~6.0%Average rent €1,100/month, average price €225,000
Alicante city (overall)~6.0–8.3% (depending on sources)Average rent ~€1,250–1,344/month, average price €260,000
Costa Blanca (overall)~5.8%Slightly below national average (~6.5%)
Costa Blanca apartments5.8–6.2%4.5–7% realistic range
Costa del Sol4–6%Less profitable on average than Costa Blanca

Net profitability is generally 1.5 to 2.5 points below gross, once HOA fees, local property tax (IBI), insurance, and management costs are factored in. On the Costa Blanca, a net yield of 3–5% is realistic for a well-calibrated investment.

Which properties offer the best yields?

Smaller units clearly stand out. On the Costa Blanca, studios and one-bedroom apartments typically show the best gross yields.

Property type (Alicante province)Average priceAverage monthly rentAverage gross yield
Studio€112,700€7608.09%
1 bedroom€165,000€8906.47%
2 bedrooms€234,000€1,1005.64%
3 bedrooms€240,000€1,2006.00%
4+ bedrooms€250,000€1,3006.24%

The logic is similar in Alicante city, even though ticket prices are higher:

Property type (Alicante city)Average priceAverage monthly rentAverage gross yield
Studio€194,900€9005.54%
1 bedroom€210,000€1,0005.71%
2 bedrooms€260,000€1,3006.00%
3 bedrooms€249,480€1,3006.25%
4+ bedrooms€350,000€1,5005.14%

For an investor seeking a good balance between acquisition cost, liquidity, and rental demand, one-bedroom and two-bedroom units between 40 and 70 m² in high-demand areas (Centro, Benalúa, San Blas, Playa de San Juan, Babel, Vistahermosa) are often a “sweet spot.”

156–180

Typical annual gross yields for this segment range between €156 and €180 per m².

Long-term vs. seasonal: two different models

The Alicante rental market is dual: very solid for long-term (low vacancy, strong urban pressure), and extremely attractive for tourist rentals, but increasingly regulated.

Example:

In sought-after Alicante neighborhoods (Centro, Playa de San Juan, Benalúa, San Blas, Babel) and in seaside resorts like Benidorm or Torrevieja, a well-located apartment typically rents in 1 to 3 weeks. The vacancy rate for long-term rentals is below 5%.

For seasonal rentals, platforms like Airbnb show interesting average revenues: around €21,000 per year for a tourist accommodation in Alicante, with a median daily rate of about €83, 274 nights rented per year, and a 75% occupancy rate. Gross yields for short-term stays can climb to 7–11% in the most touristy spots on the Costa Blanca.

But this higher profitability comes with a tightening regulatory framework (freeze on new licenses in Alicante for two years starting in 2025, stricter rules in the Valencian Community) and heavier management costs: 20–35% of revenues for full management, compared to only 8–12% for a standard annual rental.

4. Where to invest in Alicante city based on your strategy

Not every investor has the same priorities. Alicante offers a range of options to adapt risk, return, and investment horizon.

Premium strategy: beach, sea view, and patrimonial value

For those primarily targeting a high-end wealth asset, combining personal use with selective seasonal rentals, a few areas stand out.

Playa de San Juan – El Cabo likely concentrates Alicante’s most “postcard” image: long sandy beach, modern residences with pools, sports facilities, green spaces, proximity to golf and the tram line. Prices are the highest in the city: €3,400–3,900/m², with annual increases around 15–16%. A new two-bedroom with garage starts around €333,000, and rent per m² reaches about €13.9–15.6/m², with strong recent increases. The gross yield remains decent (6.5–7% for some products), but you’re clearly paying a “comfort and scarcity premium.”

Cabo de las Huertas goes even further into luxury, with multi-million euro villas and square meter prices that can exceed €5,000. This is a niche market for very high net worth individuals, where yield clearly takes a back seat to use value and capital preservation.

Tip:

The La Albufereta neighborhood offers waterfront access at prices that long remained modest, with a median around €89,000 for an apartment. It has seen strong recent revaluation, with prices around €3,000/m² and rising rents. Its advantages include beautiful sea views, still reasonable entry costs, a growing international community, and good occupancy rates.

“Downtown liquid” strategy: decent profitability and easy resale

The historic center and Centro Tradicional remain the beating heart of rental demand: immediate proximity to shops, cultural life, the port, tram, and train. Prices are high (around €2,950–3,250/m²), but lower than the most sought-after waterfront areas, and demand is constant for quality studios, one-bedrooms, and two-bedrooms.

Rents here generally range between €900 and €2,000 per month depending on size and condition. A one-bedroom apartment rents for €850–1,000/month. Gross yield is often around 7–8%, with excellent resale liquidity. Sub-neighborhoods like Santa Cruz, very photogenic and touristy, combine historic charm with strong rental profitability, with yield indicators sometimes exceeding 13% in some estimates (especially for seasonal rentals).

Good to know:

This neighborhood, adjacent to the center, offers a “business district” atmosphere with wide avenues and modern buildings, close to the train station and marina. The real estate market is almost exclusively resale properties, with prices around €3,100/m², and attracts strong demand from professionals, urban families, and expats.

“Growth and value” strategy: neighborhoods in transition

Several “intermediate” areas offer an excellent yield/appreciation potential combination. Vistahermosa, for example, combines recent urban planning, parks, bike paths, schools, shopping centers, all a few minutes from the sea and the hypercenter. Prices per m² range between €2,200 and €2,700, with yearly progression of about 8%, and two-bedroom units starting around €194,000. This is typically an area to target for quality long-term rentals (families, affluent retirees, remote workers), with a solid revaluation outlook.

24

Real estate prices in Benalúa have already increased by about 24% due to its gentrification and urban transformation.

San Blas-PAU, Plà del Bon Repòs-La Goleta-San Antón, Campoamor-Carolinas-Altozano, and even Villafranqueza-Santa Faz-Monegre follow a similar trajectory: infrastructure improvements, rapid value increases (+16 to +27% depending on the case), while remaining below €2,100/m². These “belts” around the center are very attractive for an investor willing to bet on urban transformation.

“High yield” strategy: popular neighborhoods and mid-sized towns

To prioritize cash flow, certain popular areas of the city (Virgen del Remedio – Juan XXIII, Los Ángeles, parts of Carolinas-Altozano) and especially many small inland towns in the province offer spectacular yields, sometimes exceeding 10–12%.

Towns like Sax (about 14% average yield), Crevillente (nearly 16%), Albatera, Bolulla, or Orba have very low purchase prices and rents that, relative to invested capital, produce high cash flow. The trade-off: resale liquidity is lower, dependence on the local economy is stronger, and the tenant profile can be riskier.

For a foreign investor wanting a diversified portfolio, it can be relevant to combine one or two “wealth-building” properties in Alicante or on the coast with one or two more profitable properties in these secondary towns, while remaining vigilant about management and tenant selection.

5. New vs. resale: should you pay the premium for new developments?

The numbers confirm it: in Alicante, new builds come at a high price. New apartments in the city in 2025 had an average price of about €2,650/m², a premium of 10 to 20% over resale in the same areas, and sometimes up to 25% according to some city-wide surveys.

In the province, new builds average around €2,505/m², with annual growth of about 12%. Demand for energy-efficient, well-insulated properties meeting the latest energy standards is strong, driven especially by foreign buyers and upper-middle-class Spaniards.

Good to know:

Buying a new property has several advantages: it requires fewer renovations and avoids short-term technical issues. It complies with the latest energy standards, which can facilitate access to green mortgages and attract cost-conscious tenants. Finally, it offers better long-term value, especially in the context of tightening European regulations on energy efficiency.

On the flip side, gross rental profitability is often slightly lower than with resale, because rents do not rise as fast as sale prices. For an investor, the trade-off is thus between comfort / reduced technical risk and immediate yield.

6. Financing, acquisition costs, and taxation for non-residents

Investing from abroad in Alicante is facilitated by an open legal framework: no specific restrictions for non-residents, possibility of financing your purchase with a Spanish loan, and clear regulations. But real profitability will largely depend on mastering the costs “around” the property.

Financing your purchase: down payments and conditions

Spanish banks readily lend to foreigners, but with more cautious conditions than for residents. In practice, a non-resident can hope for financing up to 60–70% of the property price, sometimes 70% for strong European profiles, compared to 80% for a resident buying a primary residence.

This generally means you need to cover in cash:

– 30–40% of the price as a down payment,

– plus 12–14% additional for purchase costs (transfer tax, notary, registry, lawyer…).

For an apartment of €180,000 in Alicante, it is therefore reasonable to budget a total of €200,000–203,000, or more if you finance less or target a new build subject to VAT.

Caution:

At the start of 2026, interest rates have stabilized around the low 3% range for the best profiles, with fixed-rate, variable-rate (indexed to Euribor), or mixed products available. A key factor to consider is the debt-to-income ratio: banks generally require that the sum of all loans (new included) does not exceed 30 to 35% of household net income.

VAT, transfer tax, and ancillary fees

The heaviest part of acquisition costs remains indirect taxation. In the Valencian Community (where Alicante is located), the rules are as follows:

– for resale, a Property Transfer Tax (ITP) at 10% of the purchase price (rate set to decrease to 9% from mid-2026),

– for new builds, VAT (IVA) at 10% on the home (21% only for commercial properties) plus a Stamp Duty (AJD) whose rate depends on the region (generally between 0.5% and 2.5%).

Added to this are notary fees, land registry fees, and legal fees. On a property worth €170,000, you mechanically end up with €21,000–24,000 in costs. On a property at €424,000, €51,000–59,000. The ratio thus remains heavy, especially for smaller budgets.

Annual taxation for non-residents: the invisible tax

A classic pitfall for foreign investors is ignoring the annual Spanish taxation for non-residents, which is not limited to the local property tax.

250-600

The annual IBI (property tax) for an average apartment in Alicante typically ranges between €250 and €600.

Next, the Non-Resident Income Tax (IRNR) applies even if the property is not rented: the tax authorities simulate a “theoretical rental income” equivalent to 1.1% to 2% of the cadastral value, to which they apply a rate of 19% for EU/EEA residents, and 24% for others. This tax is declared via a form (Modelo 210), with each co-owner having to file their own declaration.

In the case of an actual rental, the same IRNR is due on rent received:

– for non-residents from EU/EEA: 19% on net income (actual rents minus deductible expenses: loan interest, IBI, HOA fees, repairs, insurance, management…),

– for non-residents from outside EU/EEA: 24% on gross income, with no deductions allowed.

This point is crucial in calculating net yield, especially for post-Brexit UK investors or those from outside Europe.

700,000

Wealth threshold above which the wealth tax may apply in Spain for non-residents.

Recurring costs: HOA, insurance, management

Ongoing expenses noticeably eat into profitability. For an apartment in an HOA, you need to budget:

– HOA fees (community fees) often between €60 and €120/month for a standard building with an elevator, and can go up to €150–200 or more in complexes with pools, gardens, concierge…,

– home insurance of €200–350/year for an average apartment, more for very broad coverage or a villa,

– utility bills (electricity, water, possibly gas, internet) of €90–170/month depending on size and usage,

– a maintenance reserve equivalent to 1–2% of the property’s value per year to cover wear and tear, minor repairs, and contributions to HOA renovation works.

Rental management also has a cost. For a long-term rental, agencies typically charge 8–12% of the monthly rent (excluding VAT) for full management, plus a placement fee (often one month’s rent, now mostly paid by the owner since the housing law reform). For seasonal rentals, the bill rises to 20–30%, or even 35%, given frequent check-ins/check-outs, cleaning, and listing management.

7. Outlook 2026–2035: risk of a bubble or potential to double?

The crucial question for an investor hesitant to enter a market that has already risen a lot is the sustainability of the trend. Analysis of available data leans toward cautious optimism.

Demand driven by foreigners and residential tourism

In Alicante province, the share of foreign buyers exceeds 40% of transactions, with peaks over 50% according to some sources (51.8% in some surveys). Buyers come mainly from the UK, Germany, the Netherlands, Belgium, Norway, Poland, and Ireland.

This flow is supported by several structural factors: mild weather, cost of living lower than many Northern European cities, quality healthcare system, remote work and coworking, air accessibility (nearly 90% of Alicante-Elche Airport traffic is international, with massive connections from the UK), visa policies (golden visa, long-stay visas), and a taste for “residential tourism”—buying a second home used several months a year.

21.8

Number of international tourists welcomed during summer 2024.

Supply under pressure despite a rebound in building permits

On the supply side, the market is not completely frozen: the number of building permits in Alicante province reached its highest level since 2008 in 2024–2025, with over 11,900 homes authorized, nearly 9,000 of which are in multifamily buildings. Starts in the recent first quarter (2,727 homes) represent the best start to the year in 17 years.

But two realities temper this “rebound”:

– on one hand, it takes an average of 18 to 24 months between the permit and actual delivery, meaning the effect on immediate supply is delayed,

– on the other hand, the main bottleneck in the most sought-after areas (waterfront, center, premium neighborhoods) remains land—scarce or already largely built out.

The result, for the next 3–5 years, is a market that should remain “seller-oriented” in these sectors, with low inventory and limited capacity to meet international demand.

Price scenarios: from cautious stagnation to long-term doubling

Available forecasts for Alicante and the Costa Blanca converge toward a scenario of moderate growth rather than euphoria:

Real estate price outlook for 2026

Annual forecasts by geographic area, based on market expert expectations.

City

Anticipated increases of 5 to 8% per year, with the first half between +4 and +7%.

Costa Blanca

Expected range around +5 to 9%, potentially reaching +10% in premium areas with strong foreign demand (Altea Hills, Calpe, Benissa Costa, Moraira…).

Consolidated zones

Expected increases of +4 to 7% per year.

Less saturated inland

More modest progress, around +3 to 5%.

Over a 10-year horizon, several analyses estimate that a doubling of prices in Alicante is not unrealistic, which, even accounting for inflation, would still represent a significant real gain (it is estimated that over the past decade, real growth has already been 65–75% after inflation).

Risks certainly exist: a sharp rise in interest rates, a deep European recession, a sudden tightening of regulations on tourist rentals. But at this stage, signals of a “purely speculative bubble” are considered limited: the price increase seems mostly linked to real demand (residential and tourist) in a context of constrained supply.

8. Choosing your investment strategy in Alicante

Faced with this mass of data, how do you turn analysis into an action plan? It all depends on your profile.

An investor seeking safe long-term yield will often favor two-bedroom units of 50–70 m² in neighborhoods like Benalúa, San Blas, Babel, Vistahermosa, or Plà del Bon Repòs, close to transport, services, and the university. With a purchase around €200,000–230,000 and rent of €900–1,100/month, they will target a gross yield of 5.5–6.5% and steady revaluation.

A profile focused on seasonal rentals will bet on ultra-demand locations: Centro, Casco Antiguo, Playa de San Juan, Albufereta, Gran Alacant, Benidorm, Torrevieja (central beaches). Their goal: 7–9% gross by combining very profitable high season and mid-season boosted by remote work and extended stays. They must, however, factor in tourist license constraints and higher management costs.

Tip:

A long-term investor wanting to secure a transferable asset can accept a slightly lower yield to acquire a property in a hyper-resilient micro-market, such as Cabo de las Huertas, Altea Hills, or certain parts of Jávea, Moraira, or Calpe. The goal is to bet on demand that remains strong for these premium coastal pockets, even during periods of overall economic slowdown.

Finally, a “value” investor seeking significant capital gains can explore rapidly transforming areas like Los Ángeles, Campoamor-Carolinas-Altozano, Mutxamel, Vistahermosa, or certain inland villages with very high yields, accepting more attentive management and greater liquidity risk.

Three cross-cutting principles to keep in mind

Regardless of the chosen scenario, three factors stand out clearly from the data as key to a successful investment in Alicante:

Good to know:

To maximize the likelihood of long-term capital appreciation, prioritize properties located in areas with strong international demand and limited supply. These sectors are generally characterized by proximity to the sea, good tram service, and accessibility to urban centers.

2. Property size and type suited to the market: apartments between 40 and 70 m², well-laid-out one- and two-bedrooms, with balcony/terrace, air conditioning, and low HOA fees, offer the best trade-off between cost, profitability, and liquidity.

3. Mastering costs and taxation: properly anticipating IBI, HOA fees, IRNR, management fees, and renovations prevents overestimating net yield. Conversely, some unprepared investors see their projections reduced by 1.5–2.5 points due to these items.

Alicante, today, is no longer a well-kept secret. It is an established market, driven by massive foreign demand, structurally solid tourism, and a living environment that attracts students, professionals, retirees, and digital nomads alike. For an investor able to choose the right neighborhood, the right property format, and surround themselves with good professionals (lawyer, property manager, tax advisor), the combination of regular rental income and potential capital appreciation over 10 years remains one of the most attractive on Spain’s major coasts.

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About the author
Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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