Market Overview

The Mercado rental market in Alicante is characterized by moderate inventory (77 active listings) and a broad price spectrum, with rents ranging from €550 to €2,400 per month. The average monthly rent stands at approximately €1,367, with a median of €1,300, indicating a slight skew towards higher-end properties. The average unit size is 109 sqm, and the typical property offers 2-3 bedrooms, aligning with the dominance of three-bedroom units (43% of inventory). The average price per sqm is €13.82, reflecting healthy demand for centrally located, well-sized apartments. Amenities are strong, with nearly 90% of listings offering air conditioning, though only 31% include parking. The market shows a relatively high churn (182 delisted vs. 77 active), suggesting dynamic tenant turnover. Yields are not explicitly provided, but the price structure and amenity mix suggest stable, mid- to upper-tier rental returns, especially for larger units.

Investment Thesis

Investors should prioritize long-term rental strategies targeting three-bedroom apartments, which are the most prevalent and align with local demand from families and professionals. The robust amenity profile (notably air conditioning) and central location support stable occupancy and premium pricing. Holiday rentals may face regulatory or seasonal volatility, while flipping is less attractive given the moderate price per sqm and absence of distressed pricing. Focus on well-maintained, mid-market units with strong tenant appeal for consistent cash flow and capital preservation.

Investor Shortlist