Rental Prices Continue to Soar, Reaching New Highs in Alicante City During August

Rental prices show no signs of slowing down in Alicante. The city has experienced years of significant increases since the pandemic, with the current cost per square meter now doubling the figures from the previous crisis in 2008. August has once again seen notable rent hikes, with prices skyrocketing.

Last month closed with a 2.1% increase compared to July and a year-on-year rise of 12.6%, according to data from the real estate portal Idealista. The price per square meter is now approaching 12 euros in the city, with some neighborhoods far exceeding this figure.

This marks a new high since the bubble, the first year for which Idealista has data. The lack of housing supply due to a shortage of available properties and the transfer of rentals due to the Government's Housing Law has caused an increase in prices that does not seem to have an end in the short term.

To rent an 80-square-meter apartment in Alicante, one would need to pay an average of 960 euros per month, a price that rises significantly if seeking housing in central Alicante or Playa de San Juan, where historical highs have been recorded.

In fact, in areas like Cabo de las Huertas and Playa de San Juan, such an apartment would cost an average of around 1,112 euros per month, with potential for even higher prices. Other neighborhoods that saw rental increases in August compared to July include Campoamor, Carolinas, and Atozano at 10.6 euros/m2, or Vistahermosa, which is nearing 11 euros/m2.

Indeed, Vistahermosa has seen the highest rental price increase compared to 2023, nearly 24%. This means that an 80-square-meter apartment in this area cost on average 206 euros less than the figures recorded in 2024.

In the province as a whole, a new historical high has been recorded with an average of 10.7 euros per square meter, according to Idealista, a 10.5% increase compared to the same month in 2023. Several localities are recording their highest prices ever such as Santa Pola, La Vila, San Vicente del Raspeig or Benidorm, which reaches 15.4 euros per square meter.

The municipality with the highest rental price remains Finestrat, where it stands at 15.7 euros per square meter, although it is far from the peak reached in September 2023 when it hit 17.2 euros per square meter. There, an 80 m2 apartment costs an average of 1,256 euros per month.

The lack of supply is the main issue facing the province and the housing sector. According to María Matos, Director of Studies at Fotocasa, who explained to TodoAlicante in an interview that 90,000 homes would be needed just in Alicante territory to balance market prices and potentially lower them.