Alicante among Spanish cities where rents have risen the most since 2015

This week we bring an article written by our partner Alegria Real Estate.

The residential rental market in the province of Alicante ended 2024 with the strongest price increase in recent years and a full decade of continuous growth. The experimental statistics of the Housing Rental Price Index (IPVA), published by the National Statistics Institute (INE), also place Alicante among the provincial capitals where rents have risen the most since 2015, confirming widespread growth in practically all municipalities with more than 10,000 inhabitants.

Rental growth in Alicante and the province

For example, across the province as a whole, the index reached 124.481 points in 2024, taking 100 points in 2015 as the base. These data indicate cumulative growth of 24.5% since that year and 25% compared with 2014. Over the last year alone, the increase was 4.6%, the highest annual rise recorded over the entire observation period.

The provincial capital of Alicante is above this average. It ended 2024 with an index of 127.5 points, which means cumulative growth of 27.5% since 2015 and 28.2% compared with 2014. In annual terms, the increase was 5.1%, one of the highest rates among Spain’s provincial capitals, surpassed only by Valencia (5.9%) and Málaga (5.2%).

The Valencian Community became the region where rental prices rose the most in 2024 – by 5%, ahead of the Balearic Islands and Andalusia. The National Statistics Institute (INE) also notes that prices rose in all autonomous communities.

Dynamics by municipality in Alicante

All municipalities in Alicante with more than 10,000 inhabitants included in the statistics showed growth in 2024. The most notable increase was in Almoradí – 5.5%. It was followed by Alicante and San Vicente del Raspeig (5.1% each), Elche and Santa Pola (5% each), Altea (4.9%), Torrevieja and Castalla – 4.8% each.

The highest cumulative figures are seen in the suburbs of Alicante and in some coastal municipalities. San Juan leads the provincial ranking (131.7 points), while the top five also include San Vicente del Raspeig (128), Alicante (127.5), Castalla (126.8) and Mutxamel (126.5). At the opposite end are Monóvar (114.6), Rojales (116), Cocentaina (117.2), Villena (118.1) and Callosa de Segura (118.7). However, in all cases the indices exceed 2015 levels.

As for the most sought-after locations, the figure is 119.9 in Benidorm, 122.6 in Calpe, 124.6 in Dénia, 126.4 in Elche, 123.1 in Jávea, 121.7 in Orihuela, 120.1 in Torrevieja and 124.8 in Villajoyosa.

Type of housing and size

The statistics also show differences depending on the type of housing. Rental prices for apartments in multi-family buildings rose by 3.6%, while prices for single-family homes increased by 3%.

In addition, there are differences depending on surface area. Since 2014, rent for homes of up to 60 sq.m. has increased by 26.8%. For homes between 75 and 90 sq.m., growth was 22.9%, while for homes larger than 150 sq.m. it was 18.9%.

How the IPVA index is calculated

IPVA is an experimental statistical indicator calculated on the basis of information obtained from the Tax Agency and cadastral data. INE explains in its technical project that the index measures the annual price dynamics of homes rented as a permanent residence, not average market prices.

This statistical operation is based on the information declared in form No. 100 for personal income tax and is carried out annually. The methodology takes into account variables such as the location of the home, surface area, type of building, size of the municipality, duration of the lease agreement and year of construction of the property. INE notes that since 2021 the indicator has already included all rented residential premises declared during the financial year that did not appear in the list in previous years.

Article written by Alegria Real Estate.