Located in southeastern Spain, Alicante is a coastal city on the shores of the Mediterranean Sea. Surrounded by turquoise waters and golden-sand beaches, it is definitely an attractive destination for tourism, investment, and residence. Furthermore, it boasts a rich and extensive history reflected in its architecture, making it a cultural treasure.
Certainly. Alicante has established itself as a sought-after option for real estate investment, which is booming due to its climate, tourist demand, steady economic growth, and business opportunities.
It also offers a wide variety of neighborhoods suited to different lifestyles and preferences. The city is very well connected, featuring a seaport, the Alicante-Elche Airport, and the Alicante Metropolitan TRAM, which provides transportation within the city and to the outskirts.
With numerous attractions—such as coastal towns, Santa Bárbara Castle, the historic district rich in monuments, traditional cuisine, and festivals—it has established itself as one of the most sought-after destinations in the real estate market.
Alicante is well-positioned in the real estate market, with an upward trend. In 2026, an increase is projected that reflects its appeal and growth. Here are the reasons:
This year, housing prices are estimated to rise between 4% and 6%, with a 5% increase in sales and a 10% increase in rents.
Supply and demand are so well-balanced that in 2024, homes spent only 60 days on the market after being listed for sale, making Alicante one of the most sought-after cities in the Spanish real estate market.
Alicante leads international searches for vacation rentals with a 25.9% share in Spain, and its international connectivity makes it attractive to buyers from Germany, the United Kingdom, Eastern Europe, and the United States.
It combines stunning natural scenery with history and modernity, making it an attractive destination not only for locals but also for foreigners. Below are the factors that make it irresistible:
With an average temperature of 17 degrees Celsius, featuring warm, mostly clear summers and cool, windy, and cloudy winters. The turquoise-hued sea on the horizon, combined with green spaces, fosters a relaxed and healthy lifestyle.
As mentioned earlier, real estate supply and demand are booming, with high property appreciation and strong returns on vacation rentals.
The Alicante-Elche Airport is one of the busiest in Spain, offering connections to a wide variety of destinations, as well as road and high-speed rail links to Madrid, Barcelona, and other cities.
Tourism, commerce, technology, and logistics are the pillars of the city’s economic development, as is the growth of the business sector, with industrial parks and a growing number of startups.
You may be interested in: investing in vacation rentals.
There are quite a few neighborhoods in Alicante that are recommended for their diversity and amenities; here’s a summary of the top ten:
Each neighborhood will include a detailed description, its advantages, and a profile of the types of people for whom living there is most suitable.
Located next to Avenida de Denia, one of the city’s main thoroughfares. It’s characterized by avant-garde single-family homes designed to maximize natural light, featuring two parking lots, a pool, a social club, and a gym. The green spaces, gardens, and open areas make the neighborhood stand out for its style and exclusivity.
Located northeast of Alicante, bordering the Vista Hermosa neighborhood, it stands out for its dark-sand beach. It offers a peaceful, family-friendly atmosphere right by the sea, with the comforts of residential developments featuring direct access to the water, where residents can enjoy kayaking, paddleboarding, and other water activities. It is a popular area for home purchases due to its location and easy access, as well as for seasonal rentals.
This is another highly sought-after area, a neighborhood situated between Playa San Juan and La Albufereta, just 15 minutes from downtown Alicante. It is known for its crystal-clear waters and peaceful surroundings. The real estate market here is dominated by luxury homes, detached villas, and gated communities with private security. It is well connected to the city center via the tram and city buses. It is close to international schools, private hospitals, golf courses, and shopping centers.
This is a modern, commercial neighborhood located near the city center with a wide range of housing options, offices, restaurants, and shops. It is situated near the train station, the port, and the financial district. Its infrastructure is modern, featuring new apartments and condos. It is in high demand among those seeking housing in the city center or for short-term rentals, with the advantage of easy access to all key areas. The demographic is diverse, ranging from young professionals to families and tourists.
This historic neighborhood is filled with plazas and parks; it is a growing residential area characterized by its proximity to the highway, its ocean views, and its proximity to supermarkets, schools, parks, and sports centers. The real estate market here features new, affordable housing developments with potential for appreciation. It is also ideal for families due to its peaceful atmosphere and availability of amenities.
It is home to Alicante’s most famous beach, known for its crystal-clear waters and soft, golden sand. It is easily accessible by tram and car. The neighborhood is primarily inhabited by families, retirees, and tourists. It offers a wide range of real estate options, including apartments with ocean views, luxury villas, and private gated communities with swimming pools, gyms, and gardens. It enjoys high profitability from vacation rentals, attracting both domestic and international tourists. Demand for rentals here is quite stable.
Known by its acronym (Urban Development Plan 5), this neighborhood is characterized as one of the most modern and rapidly growing areas, located near San Juan Beach with a wide range of new construction and high residential demand. It features numerous green spaces and wide streets, ideal for families with high purchasing power. In terms of housing, luxury apartments and penthouses with terraces predominate. It has good transportation links via the tram, city buses, and access to the main highway.
Its lively atmosphere makes it attractive to those who enjoy cultural activities and a vibrant social life. It stands out as the city’s cultural hub thanks to its program of theater, dance, and concerts. Located southeast of downtown, the train station is just a few minutes away. Its buildings blend classic styles with new developments, featuring residential complexes with interior courtyards and basic amenities—ideal for families. It’s also close to schools, hospitals, and parks.
This is one of the most sought-after areas in the real estate market, as it embodies urban life, combining commerce, history, and tourism. It is also bustling both day and night thanks to its dining scene and cultural activities. It offers apartments in renovated historic buildings and homes in modern neighborhoods. It has great potential for investment in vacation rentals and residential properties. It boasts the best access to trams, buses, and the train station. Real estate values are skyrocketing, and demand is steady with high returns. It is also considered an exclusive area with a significant foreign population.
With narrow, beautifully adorned streets and panoramic views of the sea and the city, this is the most historic part of the city, featuring unique architecture, along with bars, restaurants, and traditional events. The real estate offerings include traditional low-rise houses and renovated apartments, both of which have seen significant appreciation and offer excellent returns. It’s a highly attractive tourist area near museums, churches, and Postiguet Beach.
If living near the sea is your priority, the best neighborhood to live in Alicante is Playa San Juan. It stands out for its modern residential developments, schools, parks, tranquility, and water sports. It’s ideal for families with children looking for green spaces and a high quality of life.
If you prefer luxury, exclusivity, and privacy, we recommend Cabo de las Huertas, as it’s the most prestigious area in Alicante. It stands out for its luxury villas, private residential developments, and modern, sophisticated urban design.
Some areas of Alicante have higher crime rates, making them less attractive, although there are no neighborhoods that are extremely dangerous. There may be less prestigious areas due to infrastructure issues and shortcomings in urban development. These neighborhoods are: San Gabriel, Virgen del Remedio, Colonia Requena, Carolina Bajas, and El Pla del Bon.
Choosing the best neighborhood for you in Alicante depends on your preferences and tastes, lifestyle, needs, and budget. Here are some tips to keep in mind when making your decision:
If what you value most is peace and quiet and a relaxed atmosphere, we recommend Playa San Juan, Cabo de las Huertas, and PAU 5.
If you’re planning to buy a property to rent out, the Old Town, Downtown, and Ensanche-Diputación neighborhoods are known for their high rental returns.
If you prefer the vibrancy of city life and easy access to shopping, banking districts, and more, your best options are downtown Alicante, Ensanche-Diputación, and Benalúa.
If urban life definitely isn’t your thing, but you want to live in a sophisticated and luxurious setting, we recommend Vista Hermosa, La Albufereta, and Cabo de las Huertas.
Although the neighborhoods in the city offer a wide range of options, many residents seek out the best towns near Alicante to live in—whether for more affordable prices, a more relaxed pace of life, or proximity to the sea without the hustle and bustle of a big city. Towns like Altea and Dénia have become top choices along the Costa Blanca thanks to their combination of Mediterranean charm, good transportation links, and quality of life. What is the best area to live in Alicante? The answer depends on each person’s preferences: those seeking beaches and a tourist-friendly atmosphere tend to prefer coastal towns, while those who prioritize tranquility and lower prices lean toward inland towns. As for safety, the safest areas to live in Alicante tend to be these towns near the capital, which have lower population densities and a more family-friendly atmosphere than the city center.
Among the coastal towns and those along the Costa Blanca, Jávea (Xàbia) stands out for its coves with crystal-clear waters and its well-preserved historic center, while Calpe is renowned for the Peñón de Ifach and its selection of oceanfront apartments—both of which are in high demand for both permanent residence and vacation rentals. Altea, for its part, is often cited as the most beautiful town in the province of Alicante thanks to its historic center with cobblestone streets and its church with blue domes, and Dénia rounds out the selection with its port, its castle, and its highly regarded cuisine. For those who prefer to be closer to the capital without giving up the beach, towns near Alicante such as Sant Joan d’Alacant, El Campello, and Santa Pola offer a happy medium: well-maintained beaches, good road and tram connections, and prices that are somewhat more affordable than in the central coastal neighborhoods.
For those on a budget, inland towns (which are more affordable) like Biar and Onil are alternatives worth considering: both offer housing at prices significantly lower than on the coast, along with a rural pace of life and a strong local identity; Onil is known for its toy-making tradition, and Biar for its medieval castle and natural surroundings. In fact, these towns often top the list when people ask which are the cheapest places to live in Alicante.
What should you consider before moving near Alicante? It’s a good idea to assess the actual distance from the capital, the frequency of public transportation, the availability of schools and health centers, and whether you prioritize the beach or the tranquility of the inland areas.
Conclusion: Which town is best for you? There’s no single answer to which town in Alicante is best to live in, as it depends on the lifestyle you’re looking for: Altea and Jávea for those who prioritize coastal charm, Sant Joan d'Alacant or El Campello for those who want to be close to the capital, and Biar or Onil for those seeking tranquility and lower prices inland.
What are the most affordable towns to live in Alicante? Biar and Onil, in the province’s interior.
What is the most upscale neighborhood in Alicante? Within the city itself, Cabo de las Huertas remains the benchmark, as we saw earlier.
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In conclusion, Alicante is a city with enormous real estate potential and a diverse range of options, allowing residents and visitors with different preferences and needs to coexist. Its growth is steady, sustainable over time, and profitable for those looking to invest. Its attractions and quality of life make it one of the best cities in Spain to live in—now is the time to take advantage of the market’s opportunities.
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Calle Pilar Mateo
Funded
100%
1.167.964,69€
Target
1.167.964,69€
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