Real estate investment in Alicante

Are you tempted by the idea of carrying out a real estate investment in Alicante? That being the case, it's in your best interest to stay with us. With the information we are going to give you, you will play with an advantage when it comes to obtaining maximum profitability.

No matter where you look at it, investing in a home in Alicante is a safe bet. Certainly, this coastal city is one of the most desired destinations for tourists, students and freelancers. Imagine all the boost that such an attraction gives to real estate investments!

How is the real estate market in Alicante?

The decision to invest in Alicante real estate is supported by the solvency of its real estate market. Not for nothing, an increasing number of investors find in it their main source of passive income. Would you like to be one of them?

The reality of the Alicante real estate market in 5 figures

1. The forecasts for 2025 predict that the demand for rental housing will grow between 8% and 9%.
2. Currently, rentals in Alicante have an average price of 12 €/m2 per month. Therefore, a tenant should pay around €960 per month for an 80 m2 apartment.
3. The profitability of real estate investment in Alicante is higher every year. Today it pays 13.9% more than in 2023. If we look back five years, the increase is 57.89%.
4. The average rental yield in Alicante capital is 8.3%, which places it one and a half points above the national average.
5. The average rental price in Alicante is €1,344 per month. Consequently, investing in its real estate is as profitable (it is 17.68% more expensive than Seville) as it is competitive (it is 83.67% cheaper than Madrid).

Why invest in housing in Alicante?

Mild temperatures all year round, delicious Mediterranean cuisine, sun and beach... Alicante has the typical attractions of a small paradise. All this, together with a continuously growing economy and excellent infrastructures make this Mediterranean city a real quarry for good real estate investments. No wonder its real estate market has managed to attract 3,500 million euros of foreign capital!

Approximately 37% of the people who reside in Alicante live on rent. This solution is more affordable than buying a house and is well suited to temporary stays demanded by tourists, digital nomads and students. Therefore, there will never be a shortage of people willing to become your tenants.

The rental park in the capital experienced an annual growth of 17.52%. However, the supply still does not cover the existing demand. This dynamic is behind the growing profitability of real estate investment in Alicante.

Let's recap. We have: a city in which everyone wants to live, a high demand for rental housing and a scarce enough supply that profitability continues to rise. Do you really need more reasons to invest in housing in Alicante?

Should you professionalize the management of your real estate investment in Alicante?

The profitability of real estate is directly proportional to our level of experience as investors. When you know the ground you are treading well, the profits grow. When you don't dominate the market, the risks multiply. This is especially true in a real estate park as competitive as Alicante.

The need to stand out among so many real estate investors, together with the desire to obtain high profitability at low risk is leading to a progressive professionalization of real estate management. Truly, there is a lot you gain when you delegate your investment to Muppy:

• We adapt the real estate market to your profile with our personalized advice.
• We know the Alicante real estate park like the back of our hand, which allows us to guide you accurately about its challenges and opportunities.
• We manage your real estate investment from start to finish, thanks to our comprehensive service (cleaning, guest management, security, etc.).

What are the best areas to invest in Alicante?

San Juan Beach - The Cape

The pleasant lifestyle that you can breathe on the best beach in Alicante is the main asset of this district. Not surprisingly, its rents are paid at €13.9/m2, which provides an ROI of 3.6% and an average profitability of between 6.5% and 7%.

Center

In addition to being equipped with the most complete equipment, the historic center of the city provides a perfect location for tourist rentals. The average rental price is around €11.23/m2, being its profitability of 7%-8% and its ROI of 7.5%.

Plà del Bon Repòs-La Goleta-San Antón

The Plà del Bon Repòs-La Goleta-San Antón area offers a high-performance location. Its privileged location and its cultural value allow to obtain a profitability of 7%-8% and an ROI of 7.03%. After all, their rentals have prices capable of attracting many tenants (they cost €10.84/m2 on average).

Santa Cruz District

Located in the historic center of the city and very close to the Santa Bárbara Castle, it is one of the most iconic neighborhoods of Alicante. Its powerful tourist charm, added to the competitiveness of its rentals (€11.9/m2), earn it a real estate profitability of 13.28% and an ROI of 7.72%.

Ensanche Deputation

The district where the railway station is located combines a central and very commercial location with excellent connectivity. With an average rental price of €11/m2, it is not surprising that it offers the highest profitability of the entire capital (16%) and an ROI ranging from 6% to 8.8%.

The Postiguet

El Postiguet is a perfect option for all those looking for a real estate investment in Alicante in an emerging area. The growing success of this beach enclave is due to a combination of factors (beach, well connected, services, etc.). After all, with rents that are paid at €12.1/m2, it is easy to obtain a profitability of 13.84% and an ROI of 4.44%.

Do you still think that investing in real estate is unsafe or complicated? That's because you don't know us. At Muppy we squeeze the profitability of your real estate investment in Alicante to leave the best part to you: receiving the profits. Join our clients and start getting 6% to 8% ROI.

FAQs

How can I find out how profitable a real estate investment in Alicante is?

To find out how much profitability the property you want to buy in Alicante can offer you, you just have to calculate the Return on Investment (ROI). Its formula is: (return obtained – investment) ÷ investment x 100.

Is it better to invest in tourist or residential rental?

The tourist rental offers greater profitability, especially in high season, but it is subject to specific regulations. In residential rentals, incomes are lower but more stable; in addition, they are not governed by a regime as strict as that of vacation rentals.

How much to invest in Alicante real estate to get a good return?

The minimum price for your real estate investment in Alicante to be successful is €200,000. These types of properties are the ones that provide the highest returns. You can also increase their value up to 20% if you renovate them.