Investment in Alicante: Medium Renovation
South-facing home with a balcony in the bedroom and a terrace accessible from the living room and bedroom, communal garage, and ceiling fans. It is sold furnished and ready to use, currently used for tourist rentals. Renovation works included clearing out, adjustments to installations, painting, repair of blinds and windows, updates to the kitchen and bathroom (appliances, faucets, and grout), and final cleaning. Signed on March 13, 2025, and the property was ready on May 29. Deposit agreement signed on January 29, rented on August 11.
About the property
About the investment
Alicante
Alicante is one of the most dynamic cities on the Spanish Mediterranean coast and one of the most attractive real estate markets in the Valencian Community. With a gross yield of 7.9% (above the local average of 7.0%) and a potential capital gain of 3.4% over the next three years, it offers a well-balanced investment profile combining current returns with asset appreciation.
With over 358,000 inhabitants, an international airport, a commercial port, and excellent road and rail connections, Alicante has the critical mass needed to sustain robust, consistent rental demand. One-bedroom apartments rent at an average of €950/month and are absorbed in just 9 weeks, ensuring very swift occupancy. The average entry price of around €158,917 is competitive for a provincial capital with strong tourist and international appeal.
Why invest in Alicante?
An affordability index of 38% reflects that renting is the dominant housing choice for a significant portion of the population, underpinning structural long-term demand. At PropHero, we classify it as a validated city with no notable risk signals, making it a liquid and reliable market for investors seeking to combine yield, demand diversity, and quality of life in a single asset.
