The Alicante Housing Market is a Mixed Bag.
A description of the real estate market in the province of Alicante, which is located on Spain’s Costa Blanca and is the most popular Spanish province among international investors.
Foreign investors, both expats and second-home purchasers, have made Alicante province in the Valencian Community, one of Spain’s autonomous regions, the most popular Spanish province in the past, and the picture is likely to be fairly similar in the future.
The Real Estate Market on the Costa Blanca
Since roughly 2010, home sales in Alicante have been on the rise, but the market looks to have run out of steam in the final few quarters of 2014. In Alicante, according to data from the National Institute of Statistics, sales growth has been negative in 11 out of the previous 12 months.
Houses for Sale in Alicante
Prices of single-family homes have been progressively increasing since early 2013, although they are still approximately 20 percent below where they were in 2007. The province of Alicante was one of the first to recover following the recession, thanks to the boost it received from international demand, as foreign purchasers from stronger economies flocked to the Costa Blanca to take advantage of the region’s low housing prices at the time of the catastrophe. All of the greatest prices have already been snapped up.
A Decline in Demand
Home sales in the province of Alicante are declining in part due to a slowdown in international demand, which is contributing to the decline. After that, if you look at the change in demand from those nations, you’ll notice that they’re all declining, which may help to explain why the property market in the province of Alicante is falling. For this reason, and because local demand is also declining, the market share of foreign purchasers in the province of Alicante has remained virtually steady at roughly 40%.
Summary of the Real Estate Market in Alicante
At the moment, the overall image that emerges from this snapshot of sales, pricing, and demand depicts a market that is slowing in terms of volume but continuing to grow in terms of value. Additionally, according to the most recent Spanish market report from Survey Spain, there is an oversupply of homes, particularly new ones, in many areas, and that “the popular area inland from and north of Torrevieja, has suffered from significant repeat flooding, so that owners and potential buyers will be concerned about the prospects of what Climate Change might bring.” A report by Survey Spain also warns that “the market prices for new developments and land in the northern Costa Blanca are very inflated, with speculative aspects heavily influencing the price of both.”