After the pandemic bracket, foreign buyers main engine once again Real estate market in Costa Blanca. The end of all restrictions put in place to stop the coronavirus allowed them to become official in the state in the first quarter of the year. 7,164 sales housing by citizens of other countries, i.e. doubled the figures compared to the same period last year -while there are still numerous limitations to mobility between different European states-, but also exceed 35% Activity volume in 2019, before covid comesAccording to data provided by the Valencian Notary College.
The almost vertical recovery of foreign demand is thus better performance than managed by local and national buyersIt also significantly increased the number of homes they had acquired in the region during the same period—about 24% compared to pre-pandemic figures—but only 6,783 remained in operation. In this way, the program continued in the recovery years in the province is repeated, especially between 2013 and 2019, when foreigners made up the majority of Alicante real estate agents.
A business that represents a significant injection of foreign currency for the state’s economy, which currently averages 171,680 euros per household, compared to the 115,544 euros Spanish people spend, especially given the increased amount of transactions. Thus, only in the first quarter of the year, home sales to foreigners moved to the Costa Blanca. 1.23 billion €More than three times the amount of shoe exports, it is the main industry of the region.
“There was a lot request stopped Europeans who are already planning to buy a house in Alicante, and the pandemic has convinced many who did not think so and are now more affected by the climate and quality of life in the region,” explains the Notary College of Valencia, Alicante. Yunus Martinez, while this also allows the majority of buyers to own homes to enjoy, purchases as investments are not so important.
An analysis that agrees with Jesualdo Ros, general secretary of the Alicante State (Provia) Association of Incentives, indicates that many companies are almost out of stock after selling. even homes that normally have a placement cost because they have a worse distribution or the smallest of the promotion. “Many buyers wanted a home overnight and that was all that was left,” says Ros, recalling that most projects are now being sold almost completely off plan.
Employers stop jobs due to rising costs
Despite the good moment in demand, Alicante supporters face serious difficulties in continuing work in progress or starting new promotions, given the increase in costs they incur, according to Jesualdo Ros, Provia’s general secretary. That’s why there are several companies that ask their customers to renegotiate prices in order to continue working to avoid incurring losses. They fear this employer that the current situation will lead to a reduction in supply given the uncertainty about the evolution of costs in the industry.
Regarding the origin of international customers, British continue to be the main buyers with the total 1,114 houses in the first trimester. The figures exceeding the notarized 1,037 in the same period of 2019, as well as doubling last year’s 513, which were very difficult to come by due to the quarantine imposed by the London Government. before the pandemic, but also before its entry into force BrexitThis demonstrates the great loyalty of these people to the state, despite the hardships caused by the loss of the status of community citizens.
Second, to consolidate Belgianwhich attachments 685 operations, 62% more than last year and 28% more than before the pandemic. Buyers are particularly attractive due to the high volume of sales they average over 225,000 Euros.
But, undoubtedly, one of the most striking cases, Dutch Y germans, from two nationalities that did not represent a very significant percentage of the market before the pandemic, partly because they preferred other parts of the Spanish geography. Now, however, they have increased their purchases in the region. The Dutch have grown from 246 sales in the first quarter of 2019 to 677 in the first months of 2022, while the Germans, who bought 290 homes three years ago, now reach 623.
In any case, increases are common. this Frenchfor example, they buy 50% more than in 2019 with 464 operations; and Swedes36% more with 582 residences. Among the few nations that have fallen below pre-pandemic levels are: NorwegianWith 280 operations in the first quarter compared to 245 in 2019.
Russians bought 280 houses in the first quarter
Although the outbreak of war meant the virtual disappearance of Russian buyers from the market, in the first months of the year – the occupation began on February 24 – a significant amount of transactions by these citizens was still recorded. So, according to data from the Notary College, in the first quarter the sale of 280 houses to Russian citizens was formalized in the province, which meant an increase of 41% compared to last year’s figures, but, unlike most nationalities, it was 20%. below the pre-covid numbers.
As might be expected, the data for the second quarter will be significantly reduced once known, since, apart from some purchases made by citizens already residing in Spain, almost no new transactions have been made due to the difficulties they have experienced. now there are Russians to carry their money.
What the data from the notaries also reflect is the increase in sales by Ukrainians, which totaled 150 operations (29% more than before the pandemic); and also by citizens of the Baltic states. Thus, Lithuanians bought 77 houses in Alicante in the first quarter (64% more than in 2019); Latvians, 15 and Estonians, 11.
Source: Informacion
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