Alicante became one of the largest in the country attractive for small investors what are they looking for inside brick a way to take advantage of your savings. this relatively affordable prices can still be found in many popular neighborhoods cost effectiveness is to take the property out to rent raisedtherefore this type of operation has become one of the dynamic factors of the market.
Thus, in the special case of the city of Alicante 32.3% of sales registered ones managed by investorswhat it means five points above the national average, According to data provided this Monday by the Group’s Director of Analysis technoev, lazarus cubeand the person responsible for the chain in the region, José Angel Morcillo, during the presentation of their study on the Alicante real estate market. With some nuances, it’s a predicted situation for the state as a whole.
And it’s not just local guardians. “In the Alicante offices we bought Delegation requests from Madrid, Castilla-La Mancha and many other regions There are customers who want to buy apartments in Alicante as an investment”, assured Morcillo.
The reason for this is none other than the high profitability that can be achieved. Thus, those responsible for Tecnocasa, average residence selling their franchises in the state’s capital, predominantly those located in trendy neighborhoods. A house of 83 square meters, for which the buyer pays approx. 69.000 € and what you can claim in the market right now 500 euro monthly rentan equivalent its annual gross return is 8.7%.
Some numbers that far exceed the interest on public debt or the fee offered by current accounts or time deposits, and are of course more compelling than the Stock Exchange when we take into account that Ibex 35 has dropped 13.8 percent. last year. Thus, the ratio of investors to the total number of activities increased by three points since last year.
With these numbers, what’s also clear to those considering the dilemma is that for now it’s still much more attractive to buy than to rent, if the necessary resources are provided. Thus, a buyer who buys the same typical home for €69,000 can apply for a mortgage up to €55,200, which he will pay. 248 euro monthly fee, With an interest rate of 2.5% and a payback period of 25 years. A sum that barely represents half the cost of renting the same house, as Lázaro Cubero explains.
Yes, the expert also remembered that financial conditions have changed. interest increases approved by the ECB, which reduces the attractiveness of the grant. fixed mortgage by banks. Thus, while 92.6% of the loans provided through real estate franchises were fixed rate last year, this rate has decreased to 59.1% in 2022 until today. In contrast, floating rate mortgages represent 31.8% and mixed mortgages 9.1%.
overvaluation
On the other hand, the Director of Analysis at Tecnocasa pointed out that the prospects for improvement in prices cause customers to tend to overestimate the price they can charge for their properties. Therefore, on average, owners often calculate what they will get from the sale. 21% more than the price set by the market.
In this sense, another of the trends observed in the real estate franchise is negotiations between buyer and seller. Specifically, if the average discount accepted last year was around 9.2% on the price initially marked, operations close in 2022 with a big drop. about 11.1% discount. Of course, in any case, the final price paid is higher, since, according to company data, used housing becomes 4.5% more expensive per square meter.
Regarding the profile of franchise customers in the city of Alicante, it is the buyer. first house (66.2%), payment cash (60%), between the ages of 45 and 54 (44.6%), Spanish national (61.5%), indefinite employment contract (61%) and secondary studies (42.2%).
A very dynamic market
On the other hand, Tecnocasa analyzed the dynamism of the real estate market of the Community of Valencia and the province of Alicante compared to the rest of the country. A comparison that clarifies the higher trading volume recorded in the region. So while 2.4 operations recorded at the national level second-hand house sales for every hundred available houses, Valencian Community the number is equal to: 2.8 and Alicante shoots up 3.12.
And population figures such as inside the province San Fulgenciowith 4.48 transactions per hundred digits; Alteawith 4.40; in teulawith 4.27 or Xabiawith 4.24.
In new construction, the national average is 0.28 sales per 100 homes. The Valencian Community (0.32) is once again above the national average in this case. Alicante is once again the most dynamic province of Valencia under new construction (0.40). Finally, Pilar de la Horadada (1.10), Orihuela (0.90) and El Campello (0.80) stand out in terms of dynamism in new construction compared to the towns in Alicante.