slowdown in real estate market It’s already completely affecting international demand Number of second houses represented in the province of Alicante More than half of total transactions. If last year’s initial rate increases didn’t impact much on a customer base that typically doesn’t need financing, loss of purchasing power The existence and persistence of European middle classes uncertainty The economy also took a hit among these buyers in the third quarter of the year. They reduced property purchases on the Costa Blanca by 14.3%.
According to data collected by Valencia Notary CollegeIt was put on sale in the province between July and September, bringing the entire community together. 6,817 houses citizens of other countries, 1,140 less Compared to the same period in 2022, this is equivalent to the aforementioned 14.3% decrease. A easing decline in data collected since the first nine months of the year -Which accounts 22,588 transactions, only 5.65% fewerThanks to the good results still recorded at the beginning of the year.
Although the situation still persists better than national segment This trend, which experienced a contraction of 17.2% in the third quarter and 13.6% in the accumulated year, is as follows: worryingEspecially if we consider that residential tourism is one of the largest types of tourism. Engines of Alicante’s economy. Both because of the direct impact of real estate transactions and because of buyers’ spending on other goods and services during their stay at the property.
In this way, the decline in operations recorded only through September 345 million drop 1,000 euros compared to the amount carried by this business in the same period last year, when total sales and purchases by foreigners represented an investment of 4 billion 334 million euros, compared to 3 billion 989 million euros this year.
Deputy dean of the Notary College, man from Alicante Delfin MartínezHe attributes these data directly to the effects of inflation and the worsening economic developments in Europe.It strengthened the purchasing power of the continent’s middle classes and, above all, pushed them to be prudent. “There is less joy,” summarizes the representative of Alicante notaries.
Countries
Data by nationality reflects the extent to which uncertainty affects different countries. English They continue to be the top international clients of real estate agencies in the region, with 964 homes purchased in the third quarter and 2,985 homes purchased year-to-date.21.1% and 17% decreaserespectively.
The decline recorded between is even greater. Germans — one of the states hardest hit by price increases — bought 26% fewer homes in the state in the last quarter (490 operations); or between Frenchdown 27.6% (312). But the cake goes swedesIt otherwise represents the second most important market in the region, compared to the current sixth place, adding just 318 transactions after a 37.2% drop last summer.
Among those who can withstand the blizzard best Belgianswhich purchased 700 properties in the province in the third quarter, only 1.8% fewer than the previous year and still maintaining a positive balance of 7.7% with 2,374 transactions for the year. masts And Dutch it also includes declines, with declines of 9.8% and 7.9% respectively in the quarter, and are the only ones that continue to deliver positive numbers. Russians And UkrainiansDue to migration caused by the war.
In the first case, they have purchased so far in the first nine months of the year: 1,022 houses in the area, 38.8% moreHowever, in the third quarter this growth was already limited to 9.7%. For your part, Ukrainians added 1,046 transactions through September, up 47%. but the increase in recent months is only 8.3%.
from Provincial Supporters Association (Provia), they put the figures into perspective and remember: The comparison was made with the best exercise in history Therefore, they think the market is adapting to a “more normal” pace, in the words of general secretary Jesualdo Ros. Ros assures that there are no concerns among businessmen in this sense and that the slowdown could even be positive for companies, as many of them have run out of stocks due to the recorded sales intensity.
Banks started to open the tap for housing loans
Delfín Martínez, deputy dean of the Notary College of Valencia, predicts that the figures in the last half of the year may reflect a certain recovery in the national market, as banks once again open the mortgage tap. It is a measure by which they try to balance the decrease in loan balances on their balance sheets with the increase in customers’ repayments. That’s why many people will opt for what’s called a hybrid mortgage to reduce the cost of rate increases their customers have to pay.