The boom in the real estate market since the post-pandemic health situation began to normalize will lose its intensity. In this regard, Alicante Realtors Association expects both sales and house prices to moderate next year, although it predicts that the province will continue to be dynamic and better resist the overall decline in current large demand in coastal areas. areas, especially by foreign customers.
Association president Marifé Esteso explains that 2021 was an extraordinary year in the number of operations, while 2022 returns to a more measured path that will continue into 2023.Alicante is a market that experiences less volatility due to the great gravity of the coast. and substantial housing demand by foreigners, which continues to be very strong. Also, the significant rise in interest rates, which affects other markets, has less impact here because half of sales in Alicante are cash and the development of Euribor does not affect them,” he emphasizes.
In this sense, he underlines that the possible effects of Brexit or the war in Ukraine do not have a significant impact on sales. Many operations are performed in areas such as Altea, Calpe or Benidorm. With nationals of the Netherlands, Norway, Sweden, Denmark or Germany. “Digital and climate nomads, young and middle-aged professionals working in teleworking joined the great appeal of Alicante, with its beaches and excellent quality of life, and they wanted to move to a place with a better climate where they wouldn’t have to face it. “There are enormous energy costs for heating in countries of origin,” he says.
As a result, real estate agents predict that the price restraint and slight decline in sales in the last months of 2022 will continue into next year. without reaching serious corrections.
Regarding the new housing market, Alicante APIs expects to perform well in 2023, with the delivery of developments started in previous years and significant demand to keep prices high.
Regarding rent, the school is clear that prices will become even more stressful due to low supplytherefore, it returns to demanding tax incentives and legal certainty measures from administrations for owners to decide to rent their homes.
An example of the recent good moment for the industry is represented by the summer season between July and September. Up to 14,540 transactions have been formalized in the provinceAccording to the data of the Ministry of Transport, Mobility and Urban Agenda, it represents an increase of 22.4% compared to the same period of the previous year, well above the national average of 3.8%. It was the largest transaction volume for this period of the year since 2006, when 17,223 houses were sold in the middle of the real estate bubble.
discharges
Regarding the agent group itself, Marifé Esteso hopes: maintain high enrollment rate in school and the relevant Alicante Association of Realtors (APIAL), after the entry into force of the Valencia Community Register of Realtors. “We are ready to help industry professionals obtain legal liability and surety insurance at an advantageous cost, complete the registration process or access the necessary training to enter,” he states.
The state’s upper limit on rental costs will reduce the offer
Marifé Esteso, president of the Alicante Association of Realtors, warns that the 2% cap imposed by the central government on the increase in rent prices will greatly reduce the already scarce supply of such housing in the state. “It’s eating away at owners because of inflation, and it’s unacceptable that they don’t pass it on to others,” he says.