The special relationship Alicante has with Algeria due to its proximity and maritime links means that the impact of the conflict over the Sahara caused by the change in the position of the Spanish Government will have a special impact on this province. And not only in terms of commercial and export activities, but also in the real estate market. And the suspension of the friendship treaty between the two countries Risked a 65m-euro business It was obtained through the purchase of a thousand houses per year by Algerian citizens whose preferred location for their second home is in Alicante. Industry critical of what it considers a “blunder” of the central Executiverequires urgent solutions.
The conflict between Spain and Algeria has left 135m euros in Alicante’s exports, as previously reported, and industries such as metals, textiles, footwear or food are among the main victims. However, the economic scope of the rupture of relations, which brings about the cancellation of banking exchanges between the two countries, will go much further.
The real estate market is another market that has seen the ears of the wolf. second-hand housing. This Algerian customers are British, Belgians, Swedes, Dutch, Germans, French, Moroccans, Russians, Norwegians, Irish, Italians and Romanians. In any case, a segment with a significant weight in the business world, especially if we take into account that the purchases of Algerian citizens before the outbreak of the pandemic were about a thousand houses per year, which is equivalent to about 65 million euros.
Summary of the last six years 4,143 homes sold to a global volume of 270 million euroshowever, we must take into account the decline in these statistics over the past two years, marked by the health crisis that has had an impact on business activity and the restrictions on international mobility.
Marifé Esteso, president of the Alicante Association of Realtors, points out what the industry expects in the coming weeks, but already warns that the Algerian market is important, “because we have many buyersIn this sense, he trusts that the conflict will be resolved because otherwise its impact would be significant.
Fernando Abarca, manager of real estate agency Abarca from the city of Alicante, draws attention to the fact that about 10% of his client portfolio comes from Algeria. “This – emphasizes – middle and upper class buyers, notaries, architects or doctorsThose who want to establish their second residence in the province and even obtain dual citizenship. It is normal to search for second-hand homes between 80,000 and 150,000 euros, so we are faced with a problem of more than extraordinary size”.
What he regrets most is that this conflict was caused by “a blunder by this government”, which, in his view, “did not adequately measure the consequences of its decisions”.
CEV analyzes the consequences of the conflict at a meeting in the Port of Alicante
CEV Alicante’s board of directors held a meeting at the Port of Alicante facilities this Friday, just after the integration of the business confederation into its unifying base. However, the meeting served to analyze the negative impact of the emerging conflict with Algeria. CEV Alicante president Joaquín Pérez emphasized the province’s special relationship with the North African country, noting that Spain is the third largest exporter to this region. “You have to take into account the shipping of goods and passengers by sea, which affects the companies established there, and especially the Port of Alicante,” he says.