Rent is advancing unstoppably in the city of Alicante and rises by 14% in the third quarter of 2024

Rent does not stop in the city of Alicante, which for the first time has exceeded 12 euros per square meter. The third quarter of 2024 has left alarming data in the city, where the price continues its unstoppable advance. According to the real estate portal Idealista, September closed with the highest average monthly rent in history in the capital.

And in the third quarter of this year, the rental price increased by 13.9% compared to the same period in 2023. The ninth month of the year left prices 0.7% higher than those seen in August and 4.4% more expensive than those recorded in the previous quarter of 2024, the second of the year.

Alicante ranks as the fourth capital of Spain with the highest year-on-year increase in the third quarter, only behind Palma de Mallorca, Madrid, and Valencia, and ahead of other high-priced localities such as Malaga or Barcelona.

However, prices are still below the most expensive capitals, with Barcelona holding this record at 22.4 euros per square meter. Despite this, the city of Alicante has surpassed 12 euros per square meter on average for the first time, according to the real estate portal Idealista.

This means that an 80-square-meter apartment would cost an average of about 960 euros per month in Alicante, about 133 euros more than what the same property would have cost just over a year ago. By areas, Cabo remains the most expensive and is close to 14 euros per square meter after rising by 15.8%. This same 80 m2 apartment would cost an average of about 1,112 euros per month in Playa de San Juan.

All areas except for the northern part of the city exceed 10.5 euros per square meter, reaching up to 12 euros in the center or 11.3 in La Goleta and San Antón. The curve in the capital does not stop and already marks highs in almost all areas of the city, some with increases above 20% year-on-year.

From the real estate portal they emphasize that the current rental situation is "alarming" and call for "immediate solutions." The spokesperson for Idealista, Francisco Iñareta, explains that to put an end to "this supply drain that is driving up prices we have to see landlords as part of the solution and not as part of the problem."

Iñareta indicates that after "years of restrictive policies, homes have been withdrawn from the market, as well as potential investors," so he demands adopting "immediate measures" to "flexibilize and balance the relationship between parties and provide landlords with greater legal security to quickly grow the rental housing stock."

In addition to the supply problem, those trying to buy a home face a complicated paradox. Despite mortgage payments being on average 42% cheaper than rents, more than 63,000 euros in savings are needed to make a down payment.

Those who do not have this money have to opt for renting, with exorbitant prices that prevent constant savings since many families spend more than a third of their salaries on rent.

The numbers are worrying. While a family would pay an average mortgage of 717 euros for a two-bedroom apartment of about 86 square meters, for this same property they would be asked around 1,020 euros since the price per square meter is around 12 euros in the city. An amount that would increase depending on the neighborhood.