Are the people of Alicante being victims of the success of their own city? If we look at the inflationary trend of its real estate market, which is growing in parallel with the international echo that the tenth most populated city in Spain has received in recent months in different foreign media, it can be deduced that they are in danger. Because while the difficulties of local residents in finding housing are accentuated, both due to sales prices and the scarcity of rental supply, reports and reports continue to be published that praise the lifestyle and conditions that the city offers for the foreigners.
The latest, a study by the real estate company InternationalLiving.com, reported by British media such as the Daily Express, according to which Alicante is one of the most affordable European destinations for retired British expatriates.
For its editors, “located on the Spanish Costa Blanca, the city is a popular holiday destination that many Britons use as a gateway to Benidorm and other important tourist centres.” The International Living team highlights that Alicante has one of the lowest rainfall in Europe, and registers temperatures of up to 30 degrees in July.
But the study does not limit itself to highlighting that Alicante’s sunny climate and beaches would be enough of an argument to tempt British expatriates, but also indicates that the city is also “much more affordable than the United Kingdom.” And not only that, InternationalLiving.com claims that it is “one of the cheapest destinations in Spain for expats, with one-bedroom apartments available to rent for 700 US dollars (about 650 euros) per month.”
That’s right? According to a report published last November by Tecnocasa, yes, because that would be more or less the average cost of renting an 80 square meter apartment in Alicante. And a quick search on the Idealista portal confirms that at that price it is possible to find studios and small one-bedroom apartments.
Specifically, in the Market area, we find a third without elevator of 20 square meters, or in Jorge Juan, near the Town Hall and Postiguet beach, another of 45 meters for 650 euros per month. And, although there are not many of them, it is also possible to find apartments for that price in Playa de San Juan (an eighth of 35 meters in an urbanization with a swimming pool), or in Colonia Romana, near La Albufereta beach (an eighth of 50 meters). square with one bedroom).
This limited supply, also insufficient for families with children, and current prices represent a problem for residents whose average salary (1,636 euros in 2023) is the third lowest among the Spanish provincial capitals, only higher than what they earn in Badajoz and Caceres. But it can be considered a bargain for the British, whose average salary far exceeds 3,000 euros, and for those retirees who, because of Brexit, find the possibility of acquiring a second home less attractive and prefer to opt for renting.
Furthermore, according to the InternationalLiving report, the cost of living is also much cheaper in Alicante than in the United Kingdom, and even cheaper than in other Spanish cities. For example, the study points out, in Alicante it is possible to have a coffee and a croissant for breakfast for only 2 dollars, a little less than two euros, “and a three-course menu can cost only 12 dollars (11 euros) per person, with a beer or glass of wine included.” It is possible, indeed, but increasingly difficult, it must be said.
Already in the recent study that placed Alicante as the second most attractive city in the world for expatriates, after Malaga and ahead of Valencia, the price factor was decisive, as it was the only one of all those considered by the study published by Forbes in in which the capital of the Costa Blanca had no rival, nowhere was it possible to find cheaper homes.
All this publicity could be having an impact on the fact that the rental price in the city has reached its historical maximum in February, having increased by 15.4% compared to February 2023: 10.8 euros/m2. It is little consolation for locals that a city like Malaga registers a similar increase and the square meter is still three euros more expensive. But the British take it into account.
