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The holiday boom in Alicante: Is it a good investment?
In recent years, Alicante has established itself as one of the most sought-after tourist destinations in the Mediterranean. Its mild climate, beaches, gastronomy, and excellent connectivity have made it an increasingly attractive city and environment for both travelers and real estate investors.
In recent years, vacation rentals have gained prominence as an investment model, driven by international demand and the rise of digital platforms. The question is, is it still profitable to invest in vacation rentals in Alicante in 2025?
Return on investment in holiday rentals in Alicante
Alicante offers a unique combination of factors that directly influence the profitability of vacation rentals: high demand throughout most of the year, affordable prices compared to other Mediterranean cities, and a stable real estate market.
Pros and cons of investing in vacation rentals
Main advantages:
High occupancy throughout the year. Although peak tourism is in summer, Alicante maintains good occupancy during spring and autumn, as well as even in winter, especially among international tourists and European retirees.
Higher profitability than traditional rentals. Nightly income from vacation rentals is usually significantly higher. This allows for higher net profitability if managed properly.
Property appreciation. Many areas of Alicante are experiencing a gradual appreciation in value, which provides additional returns in the medium and long term.
Owner flexibility. Tourist use allows the owner to enjoy their home at certain times of the year. This isn't possible with a long-term residential rental.
Drawbacks to consider:
Intensive management. Vacation rentals require active management: cleaning, guest service, maintenance, reservation management, etc.
Regulatory changes . Regulations regarding tourist apartments are subject to change; in fact, some areas are already subject to restrictions. Up-to-date advice is essential.
Increased competition . The success of this model has attracted investors and owners, which can increase competition in certain areas if a differentiated product is not offered.
Key factors before investing
Before making the decision to invest in a property for tourism purposes, it is essential to consider several strategic factors that will make a difference in the results.
Most popular areas for vacation rentals
In Alicante, location is a key factor. The areas most sought after by national and international tourists tend to share a number of characteristics: proximity to the beach, good connections, services, and an attractive atmosphere.
Historic center and old town . Ideal for those seeking an urban experience, with access to cultural life, restaurants, markets, and beaches within walking distance.
San Juan Beach . A very popular area for families and international visitors. It has good transport links and a wide range of modern apartments.
Albufereta and Cabo de las Huertas . These are exclusive residential areas with great tourist appeal for those seeking tranquility and sea views.
Arenales del Sol and Gran Alacant. They are highly sought after by foreign tourists, especially from Northern Europe, as they are close to the airport and have extensive beaches.
Alicante's surrounding areas (Santa Pola, El Campello, Villajoyosa). These are towns with good investment opportunities, competitive prices, and growing tourist demand.
Tips to maximize profitability
Investing in vacation rentals is the first step. The real difference is made by the way the property is managed and presented to the market.
Marketing and property management strategies
Differentiate yourself with your product. Offering a home that's well decorated, equipped, and maintained will make a difference. Professional photography, well-lit decor, and impeccable cleaning are directly included in bookings.
Positioning on platforms. A presence on sites like Booking.com or Airbnb must be accompanied by a positioning strategy: profile optimization, prompt response to messages, and a good reputation based on reviews.
Professional management. Outsourcing management can be costly, but it also guarantees constant customer service, ongoing maintenance, and regulatory compliance. A specialized tourist rental agency in Alicante can handle the entire process and significantly improve profitability.
Low season. Don't underestimate its value. Many owners neglect the low season. Offering tailored prices and attractive packages for mid- to long-term stays can generate consistent income even outside of the summer season.
Optimize your investment for tax purposes . Consulting with tax and accounting professionals is key to maximizing net returns. There are deductions, legal structures, and investment options that can make a significant difference in your annual results.
Is it worth investing in vacation rentals in Alicante?
Everything points to yes, it remains a good investment in 2025, provided it is done with judgment, planning, and professional advice. The tourism market in Alicante is showing a solid recovery and growth, with strong international demand and a very favorable environment for investors who act with foresight.
It's important to understand that this isn't automatic. Choosing the right area, understanding local regulations, offering a well-maintained product, and employing professional management are key elements in turning a vacation rental into a steady source of income.
At Larrosa, we support our clients throughout the entire process, from selecting the most suitable property location to fully managing the asset. Our local market knowledge and strategic approach allow us to identify real investment opportunities that provide long-term value.
Are you considering investing in a rental property in Alicante? Contact us ; we'll be happy to help you make profitable and informed decisions, with the peace of mind of having a team of professionals at your side.
