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.

A group of immigrants who were previously housed in the Alicante town of Guardamar del Segura has been relocated to the Parquemar Premium Beach Hotel, a four-star establishment where hundreds of them were already accommodated last year. Numerous residents have expressed their dissatisfaction with the decision, as they anticipate additional disruptions.

Socialist José Luis Sáez, the mayor of the town, announced the initiative on social media. He stated that the program presently houses 30 families with children attending the municipality’s primary and secondary schools. They originate from a variety of countries, including Egypt, Mali, Jordan, Paraguay, Ukraine, and Mauritania. He asserts that the new location will provide “a stable and dependable environment” in which the residents can adjust to their new circumstances with assistance in a variety of fields, such as legal, psychological, and training.

In spite of this, her post has provoked criticism from certain residents. One resident in the comments enquires, “Why don’t they transfer people from Valencia who have lost everything in the Dana?” Another user recalls the issues that were previously caused by the presence of immigrants at this hotel, which resulted in sexual assaults and battles against the complex’s employees.

Sources indicate the measure is in accordance with the unanimous decision of the proprietors’ association of the Europa House complex, where they were previously situated, to discontinue the hosting of children at their facilities.

Some residents are concerned about the potential for a surge in disturbances involving North African residents with the advent of Easter, due to the new site’s proximity to the town centre. “They shift the problem from one place to another, but don’t provide a permanent solution,” they express disappointment. The proprietors of the previous site are “tired of the daily disturbances,” according to additional sources.

Altercations and protests

The coastal town has experienced months of tension, which has culminated in the transfer. A protest in front of Guardamar City Hall in January was attended by nearly 200 immigrants who were demanding adjustments in their living conditions. The local police and the Guardia Civil managed the demonstration, which resulted in public unrest in the town.

The sheltered residents have expressed concerns regarding the administration of the NGO Cepaim, which is responsible for their care. They have complained of overcrowding and a lack of resources. Additionally, they demand that the promises they were purportedly made be fulfilled, which include Spanish nationality and employment.

The tense climate in Guardamar is not a recent development. Sexual assaults and abuse allegedly committed by immigrants residing in the town were reported in the previous months. Two immigrants of Venezuelan and Mali origin attacked two labourers at the Parquemar resort, where they were residing. Additionally, a pub bouncer and a young male from the vicinity were reported to have been beaten. Nevertheless, the mayor characterised these incidents as “isolated” and refuted the notion that the town’s security was in jeopardy.

Inadequate resources and political criticism

Ángel Delfín, the spokesperson for Vox at the City Council, maintained that his party had previously issued warnings regarding the negative consequences of the mass reception of immigrants. “When we issued warnings regarding potential consequences, they labelled us as racists,” he stated in an interview with El Debate. Delfín also observed that immigrants are dissatisfied due to the fact that they were promised expedited legalisation, which has not occurred.

Marisol Gallud, the municipal spokesperson for the Popular Party, expressed her concern and sadness regarding the town’s inaugural socialist mayor’s lack of control. She also encouraged him to be “transparent” and refrain from portraying himself as a victim.

The Socialist mayor, on the other hand, characterised the residents’ coexistence as “exquisite” and stated that he had requested reinforcements from the Guardia Civil due to concerns regarding potential “racist outbreaks.” He also downplayed the assaults perpetrated by groups of North Africans in his town.

Residents and the opposition are currently anticipating this action, with the expectation that it will not result in additional insecurity in the town of Alicante.

The Balearic and Canary Islands are at a substantial risk of losing their air connections. The airlines have issued a warning, claiming that the central government’s “non-payments” for subsidised tickets for island residents are “suffocating” the companies. The companies have been obligated to advance these subsidies, which comprise 75% of the ticket price.

The Association of Airlines (ALA) has denounced this situation, asserting that certain companies that operate flights between the islands and the peninsula “could be compelled to cease operations on some of these routes or reduce frequencies as a result of the unsustainable situation and economic suffocation caused by the Government’s non-payment of approximately 810 million euros by January 2025.”

In Spain, the demand for these connections has increased by 9.6% since 2023. This circumstance is not unfamiliar to Alicante-Elche Airport. From the El Altet terminal, numerous airlines operate routes between the Balearic Islands and Alicante and the Canary Islands. Aena data indicates that traffic with these islands comprises 34% of the national total recorded in 2024.

The situation is concerning, as Palma de Mallorca is the second busiest domestic route at the Alicante terminal, with 497,547 passengers in 2024, representing an 8.5% increase from the previous year. The sixth and seventh busiest routes at the airport are Ibiza, with 176,592 passengers (26% more), and Tenerife, with 155,000 passengers (19.9% more). With 57,460 passengers in 2024 and a 39% increase, Gran Canaria is the eleventh busiest domestic connection.

Vueling, Ryanair, Iberojet, and Air Nostrum operate flights to Ibiza, while Air Europa, Iberojet, Ryanair, Enter Air, and Vueling operate flights to Palma de Mallorca. Ryanair, Vueling, and Enter Air provide connections between Tenerife and the Canary Islands, while Vueling serves Alicante and Gran Canaria.

The situation has been further complicated by the postponement in the General State Budget (GSE). The 2023 GSE was allocated 560.81 million euros by the government, an amount that ALA maintains has been “significantly exceeded” by demand that has exceeded expectations. ” They assert that the Contingency Fund has contributed an additional 170 million euros to this sum in order to finance credit modifications; however, they maintain that it still falls short.

ALA has expressed apprehension that the new extension will result in an increase in this debt to €1.5 billion. Javier Gándara, the president of the association, maintained that this allocation is “inadequately funded” and that it has been extended until 2023, rendering it “completely inadequate to cover the subsidies of up to 75% on air service fares.”

According to Gándara, the circumstance “is compromising the financial sustainability of these airlines to the point that, if this continues, it could make the operation of some of these routes unviable, seriously affecting the connectivity of the Canary and Balearic Islands.” Consequently, the president of ALA is urging the government to promptly pay the companies that operate these routes.

Simultaneously, Gándara emphasises the necessity of “correcting this situation in the future with sufficiently funded and more realistic budget allocations.” ALA anticipates additional delays in the upcoming year, during which the allocation for subsidies for residents will remain at €60.8 million. The anticipated expenditure for this year is €1.2 billion, and the outstanding €810 million must be added.

Airlines are merely intermediaries who are accountable for the program’s execution. They act as collaborating entities of the Administration in accordance with the established regulations, applying the legally established subsidy percentage at the time of ticket purchase and subsequently paying the Administration, in this case the General Directorate of Civil Aviation (DGAC), the remaining amount after the passenger has completed the trip subject to the corresponding discount.

The DGAC is accountable for the management of the budgetary appropriations that have been allocated to cover the subsidy and for the payment of the subsidy amounts to the airlines. In summary, the airlines apply the subsidy to the resident’s ticket, which the government must subsequently settle through the DGAC, using an expandable appropriation from the General Budget. The Ministry of Finance reserves the right to increase the allocated quantity in the event that it is surpassed.