The Alicante province real estate market has experienced notable shifts recently. While transaction figures remain historically high, the second quarter of 2025 saw a 9.4% decline in residential property purchases by foreigners, suggesting the post-pandemic surge in this segment may have peaked.
In Q2 2025, foreigners acquired 7,875 residential properties in Alicante, down from 8,697 during the same period last year. This brought the total number of transactions in the first half of the year to 15,305, a 4.5% decrease compared to 2024. Despite this downward trend, Alicante continues to lead Spain, accounting for 20.4% of all foreign purchase-and-sale deals nationwide.
The British Lose Their Top Spot on the Costa Blanca
Another significant development is the shift in the profile of the most active foreign buyers. For the second consecutive quarter, British buyers have ceded their leading position on the Costa Blanca, an unprecedented change. According to the latest data from the Notarial Chamber of the Valencian Community, Dutch buyers now top the list, extending their lead over the British each quarter.
Transaction Values Rise Amid Price Increases
Despite fewer properties being sold, the total value of transactions has increased, driven by rising prices. From January to June 2025, the total transaction value exceeded €3.3 billion, up from €2.985 billion in the same period last year.
The average price of homes purchased by foreigners reached €218,574, marking an 18% increase year-on-year. By comparison, Spanish buyers paid an average of €143,160 during this period.
Country-Specific Trends: Who Is Buying More and Who Is Buying Less?
The most notable trend is the decline in British buyers, who completed nearly 5,000 transactions in 2018 but dropped to 3,594 by the end of 2024—a nearly 30% decrease. This downward trajectory continued in 2025, with British nationals purchasing 1,684 properties on the Costa Blanca, a 7.3% fall.
This decline is attributed to Brexit-related factors, challenging economic conditions in the UK, and rising property prices in popular Alicante areas. British buyers typically belong to middle and lower income brackets, limiting their purchasing power compared to other European buyers.
Other nationalities also saw reductions in purchases:
- Belgian buyers: 1,397 transactions (–9.1%)
- French buyers: 626 transactions (–12.3%)
- German buyers: 1,000 transactions (–1%)
- Swedish buyers: 725 transactions (–0.9%)
More pronounced declines occurred among Ukrainians, Poles, and other Eastern European buyers, who initially surged due to the conflict in Ukraine but have since reduced activity. Poles remain the fourth largest foreign buyer group with 1,224 transactions (–22%), while Ukrainians purchased 780 properties (–7%).
Russian buyers, despite sanctions, remain active on the Costa Blanca but saw a 28% decrease, purchasing 360 properties from January to June 2025.
Conversely, some nationalities increased their purchases, including Algerians (434 properties, +24%), Irish buyers (470 properties, +2.3%), and Romanians (515 properties, +11.2%). The most significant growth is among Dutch buyers, who have led home purchases on the Costa Blanca for two consecutive quarters, acquiring 1,879 properties—a rise of 18%.
Why Dutch Interest in Alicante Is Growing
Industry experts attribute the surge in Dutch buyers to housing market restrictions in the Netherlands. To combat a severe housing crisis, Dutch cities and the government have introduced measures limiting purchases of second homes and investment properties. Consequently, many Dutch investors are redirecting their capital to Spain, particularly Alicante.
Persistent Shortage of New Housing
Despite the decline in transaction numbers, Alicante developers remain confident. Demand from European buyers continues to outpace the supply of new housing, and the shortage is intensifying.