Rental Prices Reach Record Highs in Alicante for First Half of the Year

Alicante has concluded the first half of the year with a new surge in rental prices, setting a new record in the provincial capital. The second quarter ends with an average price of 12.4 euros per square metre, the highest figure in the city.

The new peak was reached in June following an 8.4% increase compared to the same month last year. This marks a nearly 5% rise from the first quarter and a 1.6% increase from May, when the previous record was set.

June concluded with three areas in Alicante exceeding 13 euros per square metre, and four locations reaching new price highs. Areas such as La Goleta, El Plà, and San Antón have risen by more than 16% in a year, now surpassing 13 euros per square metre. Meanwhile, in the city centre and San Juan beach, rental costs have increased by 11% and 6.5% year-on-year, respectively.

With the new peak, the average rental price for a 100-square-metre apartment in Alicante is 1,240 euros, compared to 1,150 euros a year ago. This represents a monthly difference of about 90 euros, or nearly 1,100 euros more annually.

The situation is more critical in neighbourhoods like El Plà, La Goleta, and San Antón. These areas have lower rents than the city centre but with higher rental costs. Here, a 100 m2 flat costs 1,320 euros, 20 euros more than in the city centre or 210 euros more per month than in the neighbouring Carolinas district.

According to Idealista, the government is directly blamed for these relentless increases: "Despite all warnings and calls to redirect policies approved by the government in recent years, the disaster in the Spanish rental market is a reality."

Francisco Iñareta, spokesperson for the real estate portal, asserts that the approval of the Housing Law "has only resulted in the disappearance of a large portion of the available rental supply, consequently driving up prices due to tensions between supply and demand." The expert points to the reduction in supply as a key factor that has "drastically increased competition among potential tenants."