summary
- Torrevieja and Orihuela lead in property price increases in Alicante.
- torrevieja sees a 7.3% rise; Orihuela, 7.1% in 2024.
- Average property prices: Torrevieja (€1,604/m²) and Orihuela (€1,627/m²).
- Housing affordability remains a concern for residents in both cities.
- Overall property sales in Alicante rose to 52,867, marking an 8.8% increase.
- Strong market projections for 2025 indicate potential investment opportunities.
Torrevieja and Orihuela: Leading the Housing Market Boom in Alicante
The property market in the province of Alicante is experiencing a notable surge, with Torrevieja and Orihuela at the forefront of this growth in 2024. According to the Tinsa IMIE Local Markets report, both cities have recorded notable increases in housing prices, making them attractive destinations for homebuyers and investors alike.
Significant Increases in Property Prices
In 2024,Torrevieja saw an increase in property prices of 7.3% compared to the previous year, while Orihuela closely followed with a 7.1% increase. This upward trend in housing prices highlights the growing demand for real estate in these locations, which are becoming increasingly desirable for both residents and investors.
| City | Price increase (%) | Average Price (€ per m²) | Percentage of Household Income Required |
|---|---|---|---|
| Torrevieja | 7.3% | 1,604 | 61.8% |
| Orihuela | 7.1% | 1,627 | 48.8% |
Affordability Challenges in a Booming Market
The growth in housing prices has raised significant concerns regarding affordability.In Torrevieja, purchasing a home now consumes 61.8% of a household’s income, well above the generally accepted threshold of 35%. Similarly, Orihuela requires 48.8% of residents’ income to afford homes, indicating a pressing issue that could affect future demand.
A Broader Trend in Alicante Province
The rapid increases in Torrevieja and Orihuela mirror a larger trend in the Alicante province, where average property prices rose by 9% year-on-year, outpacing the national average increase of 4.4%. Benidorm took the lead in price increases at 11.3%, but the substantial growth in Torrevieja and Orihuela underscores thier appeal in the region.
Surge in Property Sales and Mortgage Activity
The heat in the property market is further illustrated by the uptick in sales. In 2024, the total number of property transactions in the province soared to 52,867, reflecting an 8.8% increase from 2023.Mortgage activity also surged, with 19,250 new loans granted, marking a 14.7% increase and showing that buyers are actively seeking financing to capitalize on the current market conditions.
Looking Ahead: Strong Real Estate Projections for 2025
With sustained demand and rising prices, Torrevieja and Orihuela continue to play pivotal roles in Alicante’s real estate landscape. Despite affordability issues, the consistent growth suggests a robust potential for investment in these areas, making them key locations for homebuyers and property investors as we move into 2025.
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