The rental prices in the city of Alicante increased by 0.7% in February, reaching €11.9 per square metre. In comparison to the same month last year, this figure has increased by 9.8%.
The rental reference index is once again providing some respite to tenants who are required to renew their leases this March, as rental prices have experienced a significant increase. According to the National Statistics Institute’s reference figure, the utmost rent increase is 2.08%.
This is the lowest value since the implementation of this percentage in December of last year, with the intention of restricting rental renewals and mitigating price increases. The value, which is based on February data, has decreased by 0.11 percentage points and is at a four-month low.
This percentage will be applicable to residential rental contracts that were executed subsequent to the implementation of the Housing Law in May 2023. The remaining items will continue to be updated in accordance with the Consumer Price Index (CPI), which is approximately 3% this month. Consequently, the INE index suggests an increase that is less than the inflation rate.
In a market with high demand and limited supply, a price increase that is significantly different from the current situation. Therefore, the index’s annual increase in Alicante is nearly 7.8 percentage points. This implies that Alicante residents who renew their leases will be saving a substantial sum when the actual market price is considered.
An 80 m2 flat was priced at an average of 864 euros a year ago, while the current average monthly price is approximately 952 euros, as per Idealista data. A discrepancy of 88 euros per month, or 1,056 euros per year.
This flat was unable to achieve these values under the INE limit, as it was subject to a limitation of 2.08% increase, as opposed to the current 9.8%. This implies that individuals who renew their tenancy would be required to pay an additional 18 euros per month, which equates to 882 euros or approximately 216 euros per year.
The disparity between the present market value increase and the increase proposed by the INE is more than substantial. In 2025, rents that are renewed and subject to the government’s percentage increase could not increase by more than 24 euros per month. This would result in an average savings of up to 840 euros per year for Residents of Alicante.
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