Economic slowdown begins pass the bill Alicante real estate market and this is not a small amount. The decrease in the number of operations recorded in the first half of the year, Discount of over 200 million euros the volume of money this activity carries in the province. That is, a decrease of 4.7% according to the latest data of the Ministry of Transport, Mobility and Urban Agenda.
Total, Up to 27,983 houses were sold in the province between January and June. This is still a very high amount, well above the normal amount before the pandemic, but it represents: 1,611 fewer transactions compared to the same period last year. This is a fact that indicates that the market will have already peaked and will now be entering a contraction or normalization phase, depending on how you want to look at the situation.
In any case, this decline in sales is also a Decrease in the volume of money moved As a result of real estate activity, which we must not forget represents one of the biggest engines of the economy of Alicante. Thus, the total amount of transactions made before a notary public in the first six months of the year remained at 200 thousand TL. 4.189 million euros, up to 207 million less compared to the previous year. For example, some exceeds the volume reached by toy exports In all of last year, the province’s revenue was 156 million euros.
Foreign
state so far managed to avoid the fall Thanks to its significant weight, it has a significant impact on housing buying and selling throughout the country. international customers In the region that covers almost half of the market on the Costa Blanca. In general, buyers who did not resort to bank financing protected this segment from the consequences of interest rate increases.
However second quarter data They already reflect this Also foreigners are starting to think twice Before you make the significant investment of buying a home. Therefore, between April and June The number of international buyers increased from 8 thousand 263 to 7 thousand 898There was a decrease of 4.4%. However, the decline is much larger if only non-resident foreigners, i.e. Europeans looking for a second home, are taken into account. Europeans reduced their purchases by 8.2%, from 5,888 in the second quarter of 2022 to 5,400 this year.
And although interest rate hikes may not affect them as much as local, German, Dutch or British buyers, they too are hit hard in their pockets. The consequences of inflation and the paralysis of the economy.
Municipalities
If the situation is analyzed by different municipalities of the province, the decline in the real estate market in the second quarter of the year was generalized in almost all towns in the region, except for Alcoy, which showed an increase of 8%. total of 304 transactions. Just the opposite, TorreviejaIn the province where the most housing sales were made throughout the district, the number of transactions decreased by 7.8 percent to 2 thousand 113.
In the city of Alicante, the second largest real estate market in the province, the decline was even more pronounced. Here, a contraction of almost 16% was recorded in the number of sales and purchases, with a total of 1,752 units. A very similar situation OrihuelaIt fell to 1,249, recording 15.8% fewer transactions.
In Elche, the market fell by 7.6% and 974 houses were sold between April and June. Benidorm fared slightly better, with 599 sales, down just 1.1%. Denia Up to 28% fewer homes were sold through 480 transactions.
After a small break in August, Euribor rose again in September, which will mean additional effort for those having to review their mortgages in the coming weeks. Thus, the indicator closed the month at 4.149%, compared to 4.073%, its highest level since November 2008.
In this way, the average payment for a mortgage of 105,000 euros for 25 years in the state will already be 622 euros per month; This represents an increase of almost 250 euros compared to the amount paid in December 2021, when Euribor started. his climb. In other words, the mortgage already takes almost 3,000 euros more annually from the budget of Alicante families.
Moreover, everything indicates that the increases will continue. Because the increase in fuel prices in recent weeks shows that the ECB should focus on new interest rate increases to control inflation. Therefore, it can be predicted that the decline in the use of new mortgage loans and thus in house sales will continue. To date, the official price of money has already increased tenfold.
Source: Informacion
James Sean is a writer for “Social Bites”. He covers a wide range of topics, bringing the latest news and developments to his readers. With a keen sense of what’s important and a passion for writing, James delivers unique and insightful articles that keep his readers informed and engaged.