The Two Towns in Alicante Leading the Rise in Housing Prices in Spain in the Second Quarter of 2025

The second quarter of the year has ended with a new increase in housing prices in the province of Alicante. The cost per square metre continues to rise, increasing by 7.1% compared to the previous quarter, according to the real estate portal Fotocasa.

With 2,743 euros per square metre, the province of Alicante remains at its peak, although it is far behind others like Madrid, Barcelona, or Malaga. In the case of the city of Alicante, the 4.5% quarterly increase places the cost per square metre at around 2,801 euros, above the provincial average.

However, two towns in the province stand out. These two municipalities are among the top ten in Spain where housing prices have increased the most in this second quarter of 2025.

These towns are Pego, in the Marina Alta, and Dolores, in the Vega Baja. The southern town of the province ranks second in Spain for the highest increase in cost per square metre, according to Fotocasa's study. Dolores, with a surge of 34.5%, is just behind Santa Coloma de Farners in Girona.

Pego ranks seventh, where this quarter the housing price has risen by 25.3% compared to the previous period. The ranking is completed by Santa Cruz de Tenerife capital (23.7%), Sant Fruitós de Bages (23.3%), and Moncofa (22.8%).

According to the real estate portal, the increases this quarter are "the most significant in 20 years." In fact, the province is at the Spanish average, while Pego triples it. In the case of Dolores, the rise in housing prices is almost five times greater.

"The sharp increase in housing prices is becoming a problem for housing accessibility, reaching historically high levels of difficulty," comments Fotocasa's director of studies, María Matos, who indicates that the imbalance between supply and demand is causing this situation.

With demand at its peak, the drop in interest rates, and the change in property types, prices have skyrocketed while supply falls. "Today, six times fewer homes are built than before, despite having 4% more population; this situation is what drives prices up," concludes Matos.