How Rental Prices in Alicante Have Changed Since the Pandemic: Half of the Apartments Disappear from the Market and Prices Soar

Recently, it has been five years since the onset of the COVID-19 pandemic, a tragic event that affected everyone and changed the way of living, at least for a long period. The health emergency permeated all sectors, from economic to social and political, and the real estate market was no exception.

Rentals have undergone a drastic transformation since the pandemic. While prices eased during and after the lockdown months, in 2021 the rental market rose exponentially, with prices increasing monthly without a nearby ceiling. Even today, five years later, they continue to reach new heights.

The decline in supply is partly to blame. Since 2020, half of the rental listings in the city of Alicante have disappeared. A situation that has led to a 60% price increase in just five years, according to a report by the real estate portal Idealista. Alicante is the third city in Spain with the highest price increase during this period, only behind Valencia and Barcelona.

After the state of emergency, government policies have tried to curb these increases, without success. While in February 2020 the price per square metre did not exceed 7.6 euros, by 2025 it is already at 11.9 euros, with some neighbourhoods in the city nearing 14 euros.

Five years ago, an 80-square-metre apartment cost an average of 608 euros per month in Alicante, whereas today, the same apartment would cost 952 euros. This represents a difference of almost 350 euros more per month, 4,200 euros annually.

The situation is much more acute in areas like San Juan Beach, where the same apartment has gone from costing 688 euros per month five years ago to 1,122 euros, a difference of 424 euros. A similar situation is experienced in the city centre, where prices have risen uncontrollably, with the price per square metre exceeding 12 euros.

The collapse of the residential market supply in favour of other types of temporary rentals, such as holiday or student rentals, has resulted in more than half of the supply registered at the end of 2020 disappearing over five years.

The government's continuous attempts to cap prices, with interventionist policies, have led to a shift in supply or withdrawal by owners, who demand greater legal security. Measures such as the Housing Law or the recent cap on rent increases aim to address one of the issues that most concerns Spaniards: the price of housing.

This complex situation is better understood when considering the overwhelming growth in rental demand. According to Idealista, the number of families interested in each listing in 2019 was five, whereas now it has increased to 21.

This represents a 339% increase in just five years. "The increase in competition is the most serious problem faced by families needing housing, often more so than the high prices," explains Francisco Iñareta, spokesperson for the platform, who highlights that they have to undergo 'castings' where factors such as income, reliability, or the possibility of recovering the property in case of non-payment are assessed. "The profiles are increasingly elitist," the expert states.