Foreign buyers are reshaping the Alicante property market, and prices are rising with them
New research shows non-resident foreigners spend 60% more than Spaniards when buying property in the province, pushing coastal prices beyond the reach of many local residents
If you have been watching property prices in the Alicante area and wondering why they keep climbing, a new report from BBVA and the Valencian Institute of Economic Research (Ivie) offers a clear part of the answer. Foreign non-resident buyers are paying significantly more than Spanish purchasers, and their growing presence in the market is pushing prices up across the board.The figures are striking. In the first quarter of 2026, around 44% of all property transactions in the province of Alicante involved foreign buyers, the highest proportion of any province in Spain, with Málaga second at over a third. Nationally, the foreign share of purchases has risen from 7% to over 18% in recent years, but Alicante sits well above that average.
It is the non-resident foreign buyers who are having the biggest price impact. According to the report, this group spends around 60% more than Spanish buyers, a gap that has been widening since 2024. While the average price per square metre across Spain stands at €1,764, foreign buyers pay over €2,900 for the same space. In coastal areas of Alicante that figure rises to over €4,000 per square metre on average.
The report is clear about what is driving this: "There is a significant group of non-resident foreigners with high incomes who buy property in coastal, tourist or major city areas," and these buyers "generally do not face affordability issues, although their purchases may exacerbate those faced by residents of any nationality." In other words, buyers who can comfortably afford these prices are making it harder for everyone else.
The trend is part of a broader pattern of rising prices that has been building for some time along the Costa Blanca, with Benidorm and Torrevieja among the areas where affordability has been pushed hardest. It also continues a longer upward trajectory in Spanish property prices driven by demand consistently outpacing supply.
Not all foreign buyers fit the same profile, however. The report distinguishes between wealthy non-residents buying holiday or part-time homes, and labour migrants who live and work in the province. Around 12% of purchases in Alicante are made by resident immigrants, many drawn by the tourism job market, though two thirds of this group opt for long-term rental rather than buying.
Total property sales in Alicante are approaching 55,000, the highest figure since records began, with foreign purchases having more than doubled since 2007.
You might also be interested in: Non-EU property owners in Spain can now deduct rental expenses and receive tax rebates
Image: geralt/Pixabay
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