Alicante housing market sees sales decline amid high prices

Home sales in the province of Alicante, Spain, experienced a significant downturn in the first half of the year, marking the weakest start to a year since the pandemic. According to data from the Ministry of Housing and Urban Agenda, 25,593 homes were sold, representing a 13 percent decrease compared to the same period in 2025.

The decline is widespread, affecting 105 of the 141 municipalities in the province. Major urban centers have seen the sharpest drops, including Alicante city (down 18.5 percent), Benidorm (down 19 percent), Dénia (down 17 percent), and Santa Pola (down 21 percent). Experts attribute this trend to a shortage of supply and rising prices that are increasingly unaffordable for buyers.

In response to these market pressures, the Federation of Public Works and Auxiliaries of the Province of Alicante (FOPA) has called for tax relief to support social housing. FOPA President Javier Gisbert proposed eliminating VAT on social housing properties to lower prices and improve accessibility for low- and middle-income households.