Rising interest rates reduce Madrid residents’ purchases of homes on the Costa Blanca

HE real estate stoppage The increase in interest rates and losses in the purchasing power of families affect the Costa Blanca market, one of the markets with the greatest weight in the sector, with particular intensity. national second home buyers and especially to the people of Madrid, who make up more than half of this segment. Representing a type of customer more than 10% of the entire market The number of residences in the province is very large, which is very important in many coastal towns or the city of Alicante, especially in the central region of San Juan or on the coast, where they have traditionally been one of the driving forces of the sector.

According to the latest data from the Ministry of Transport and Urban Agenda, between January and September last year Buyers from other provinces purchased up to 4,799 houses along the entire border line representing 17.8% decrease According to figures from the same period last year. a fall Much higher than the experience of the entire market, which fell 7.8% At the same time, there was a decrease of well over 4 percent in purchases from foreigners, the other major foreign customer group of real estate agents in the region.

Unlike the latter, which conduct most of its operations in cash, national second home buyers They apply for financing more frequently and they also have slightly lower purchasing power, so most vulnerable As explained by the president of the Association of Realtors of the Valencian Community (Asicval), the increase in the cost of credit, Nora Garcia.

A view of Torrevieja beach. Tony Seville

This group has the largest number of customers MadridThey have always chosen Costa Blanca as one of their favorite destinations due to its ease of communication. But they are one of the markets that are suffering the most right now. almost 25% drop. Specifically, between January and September, they purchased 2,723 homes statewide; Last year this number was 2,057.

generation change

In this sense, the manager of the Alicante company, Abaco Servicios Inmobiliarios, Juan Carlos Sempere, He points out that beyond the current situation that has caused this collapse, there are also deeper, structural reasons that threaten this segment of the market. Among these, The mentality change of new generations who prefer to rent Before you buy to avoid being tied to one goal. Moreover, Increase in housing prices in MadridHome loans requiring longer mortgages make it harder for families to save money to access a second home on the beach, according to the expert.

In any case, Madrid residents are not the only ones who bought fewer homes on the Costa Blanca last year, as the decline is general. For example, valenciansPeople who represent the second largest group and buy primarily in Marina Alta also bought 19% fewer homes in the state, with a total of 750 homes. castellanomanchegos With a total of 365 flats purchased, the decline exceeded 20%; while a customer Basque This rate, which was one of the most important in municipalities such as Benidorm some time ago, fell by 24% with 176 operations.

Apartment blocks in Benidorm. David’s Revenge

Among those who can withstand the blizzard best CatalansThere were 231 home buyers in the province, only 1.2% fewer than in the same period in 2022.

As explained, regarding the type of housing they purchase, nationals generally prefer apartments and residential houses compared to foreigners preferring detached houses. Pedro Menarguezfrom Marsol Internacional who admitted this Price increases in recent years represent another brake for such customers compared to the higher purchasing power of expatriates.

The locomotive of the real estate industry stopped: Sales decreased in Torrevieja, Alicante and Orihuela

Beyond the situation of national second home buyers, statistics from the Ministry of Transport and Urban Agenda reflect a general decline in housing transactions in most municipalities of the province; Sectors in the region: Torrevieja, Alicante and Orihuela.

The salt city remains the largest local market in the region, with 5,532 transactions between January and September last year, despite recording a 6% year-on-year decline. The capital of the province ranks second with 5,058 operations and an annual decrease of 13.3%. Orihuela fared slightly better, accounting for 8.4% less with the addition of 3,641 home sales.

In this sense, the decline recorded in cities such as Santa Pola (1,447 operations, 19.5% less) is noteworthy; El Campello (661, 20.6% fewer); or San Vicente del Raspeig (503, -31.4%). Elche manages to contain the decline with 2,631 operations, only 2.6% fewer, while only some towns, such as Benidorm (1,719, +0.8%), maintain positive figures in the year’s total figures; Calp (1,069, +2.8%) or La Vila (841, +9.3%).

Source: Informacion


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