Although interest continues national buyer, The profile of coastal home buyers continues to change fundamentally international And coming from england‘With the impact of Brexit, France recovered together with Germany and other central European countries. Yes, there is a shift towards a profile in the higher market segment.
The increasing trend in prices, Second home buyers’ purchasing power is above averageDue to high percentage purchases, they are less affected by the impact of inflation or rising interest rates because they have the savings to cover the purchase with their own resources.
The coastal municipal market is highly concentrated, with more than 70% of operations. HE The average price of holiday homes is significantly higher It continues to grow by increasing the average price registered in coastal municipalities compared to the general price of the province.
These average prices of the coastal municipalities of Alicante are similar to the average of the Mediterranean coast and the Atlantic coast but remain below the main coastal references such as the cities of Valencia, Málaga, Cádiz or other large municipalities.
«The average price of holiday homes is noticeably higher and continues to rise»
Our data shows that the average price of new and used housing in the city of Alicante is €1,546/m², 5.1% higher than a year ago and higher growth seen in the province (+6.4%) We set the price as 1.404€/m². High demand, significantly supported by purchases from non-resident foreigners and above all supply shortagecausing upward price tension to continue.
Housing continues to be a safe haven of choice for many investors in inflationary contexts such as the current one. The saver, the buyer profile who is less affected by these inflationary tensions and in most cases does not need financing, increasingly prefers to invest in holiday homes that provide high returns, given the product scarcity and very high demand.
This impact has a direct impact on supply, reducing the small supply of traditional rental housing and creating difficulties in accessing local demand. The situation does not seem to change in the short term lack of supply.
We continue to observe asymmetry with a significant difference in prices between the new construction and second-hand housing markets. Besides the obvious differences in the product, Insufficient supply of new housing It continues to push prices up, directing demand towards second-hand products.
«We continue to observe asymmetry between new construction and used housing markets»
The economic situation and the rise in interest rates are eroding some of this demand and creating a greater impact on this second-hand housing segment, where prices are expected to trend downward. stabilizationThis causes the imbalance to tend to increase further.
The real estate sector has shown an overall improvement. slowdown in trading operations, we find ourselves in a state of moderate activity and normalization after the intense growth of the previous years. Home buying and selling by foreigners is decreasing, but at a lower rate and accounting for an increasing percentage of total sales. Alicante is at the forefront of foreign transactions; This is an extremely positive situation considering the current macro environment.
The trend is towards price stability, but no correction is foreseen, which would suggest that after some time purchases will be cheaper than now. And from a financing perspective everything points to this: Mortgages could become more expensive, or at least sustainable In the coming months. Buying a house is a decision linked to very personal circumstances, but if you find one that suits your needs and you can afford it, it may be a good time to buy, taking into account the medium-term forecast.