Used house prices in the province of Alicante started the year in the midst of an acceleration period. And this Shortage of supply, together with the rise in interest rates and strong foreign demand, led to an annual increase of 15.4%., placing this region in fourth place nationally where it becomes more expensive at 1,817 euros per square metre. It’s also the biggest increase since the start of the real estate crisis.
In the province of Alicante, the prices of second-hand homes have skyrocketed even higher, following in the footsteps of new homes that became 14% more expensive within a year. This is revealed in its latest report last February by Fotocasa, one of the main real estate portals in the country. According to the information collected, the annual increase in Spain reached an average of 2,086 euros per square meter, with an annual increase of 9.9%. In the province of Alicante, the increase was five and a half points higher.
Actually, There are only three regions where the increase is more significant.. These are the Balearic Islands with a growth of 20.2% leaving the price at €3,466; Santa Cruz de Tenerife with 19.1% and 2.150 Euros; and Navarra with 17.5% and 1,914 euros. The smallest increases correspond to Albacete with 1.6% and 1,355 Euros; Ciudad Real with 1.5% and 974 euros; and Asturias with 1.2% and 1,602 euros. The province of Alicante also ranks twelfth among the most expensive regions, after the Balearic Islands, Madrid, Gipuzkoa, Barcelona, u200bu200bBizkaia, Málaga, Álava, Girona, Santa Cruz de Tenerife, Navarra and Las Palmas.
The increase in prices in Alicante was also higher than the Valencia Community average.Combining an 11.1% increase leaves the average price at 1,608 euros. In the province of Castellón, with a total price of 1,203 euros, the increase was 7.1%; In Valencia, it was at 6.9% with 1,532 Euros.
Regarding municipalities, the biggest increases both in the province and in the Community of Valencia Pilar de la Horadada, up 59.4%; El Verger with 47%; Rojales with 46.4%; and Finestrat, with 41.7%. Pedreguer behind with 39%; and Calp with 36.4%. Regarding the most expensive prices, Calp leads the regional ranking with 3,293 euros per square metre.followed by l’Alfàs del Pi with 3,021.
Among the capitals of the Community, the largest increase was in Alicante., leaving the price per square meter at 2,012 euros, with 18.3%. In Castellón, the gain was 7.9%, remaining at 1,320 euros, and in Valencia it was up 0.9% to 2,354 euros.
Acceleration
Photocasa Director of Studies, María Matos, points out: These increases represent the biggest acceleration in the last 17 years.. “This is an uptick that puts us at similar levels to 2006 during the pre-real estate bubble warming period,” he emphasizes. While stating the reasons for this growth, Matos mentions that the monetary policy change in the interest rates of the European Central Bank (ECB) has made housing loans more expensive, causing a resurgence in second-hand housing demand as a result of being more affordable and cheaper. It puts pressure on prices due to the shortage of supply.
However, from the real estate portal, they think that these increases are temporary and it’s only a matter of time before the price starts to show signs of moderation and returns to a stable path based on the increase in the mortgage rate. The crisis caused by Euribor will also be reflected in second-hand houses.
Marifé Esteso, president of the Alicante Association of Realtors, also agrees that low supply is driving prices down. “It varies by municipality and region, but overall there is no doubt that this type of housing offer is quite limited,” he emphasizes.
A phenomenon, according to Pedro Casamayor of the Alicante real estate company named after him, This has to do with the strong demand from foreign customers in the province.. In his words, “To the usual pressure was added the effects of the war, which now leads to increased demand from both Ukrainians and other Eastern countries, and not only second-hand housing, but also new construction.
Foreclosures reduced by 15%
According to data published by the National Institute of Statistics (INE), home foreclosures in the state of Alicante fell 15% to 1,414 in 2022. This decline comes after foreclosures increased from 1,313 to 1,686 as a result of the Government’s moratorium on mortgage payments due to the pandemic, following the increase recorded in the previous year. But foreclosures on rustic farms rose 7% to 178 in 2022.