Historical prices. This is the problem that the province of Alicante is experiencing in the housing sector. Offers reach an average of 205,500 Euros for second-hand flats of 100 square meters, and 1,080 Euros per month for rentals of the same area.. This is also revealed by the latest report published by the Idealista portal, which highlights that the city of Alicante has reached record prices in both departments. According to real estate professionals, the lack of supply lies behind this increase in prices.
Idealista evaluates last year in its report and comes to the following conclusion regarding second-hand housing: Prices increased by 11% in Alicante provinceAn average of 2,055 euros remained per square meter. Highest price since the real estate bubbleThe record was reached in 2006 with 2,184 euros.
It was the fifth region with the largest increase, after Tenerife’s 20.2%; 12.7% from Soria; and 11.3% from Malaga. However, there are also provinces where prices are higher. This is the case of the Balearic Islands, where the square meter is priced at 4,083 euros; Guipúzcoa, 3,505; Madrid with 3,208 people; Malaga with 3,079; Vizcaya with 2,758; or Barcelona with 2,638. At the bottom is Ciudad Real with 745 euros; Jaén, by 830; and Cuenca, with 852.
Regarding rent, the province of Alicante has indeed reached its historical maximum, following a 16% increase last year.This leaves the price at 10.8 euros per square meter. It was also the fifth region to record the largest increase, after Segovia, with 21.8%; Balearic Islands with 18.3%; Tenerife with 17.7%; and Valencia with 16.8%. Barcelona leads the list of the most expensive cities, with a square meter costing 17.5 euros; Madrid with 16.2 points; Balearic Islands, with 16.1; and Guipúzcoa, with 15.2. The cheapest province in terms of rent is Jaén with 5.5 euros, followed by Zamora with 5.8 euros; Cáceres with 5.9 points; and Ciudad Real, 6.
The idealista portal also carries out an analysis of prices in state capitals across the country. Alicante, along with Cádiz, Madrid and Málaga, are currently recording record figures for both used and rental housing.
In the first part, The average square meter price in Alicante increased by 17.5 percent last year to 1,915 euros.in Cádiz, 2,786; 4,118 in Madrid; and 2,668 in Malaga. In Alicante, the rental price increased by 16% to 10.8 euros; Cadiz at 11; 17.9 in Madrid; and 13.6 in Malaga.
Regarding Alicante, the report notes that five out of ten districts of the city recorded maximum prices for used housing, making it the most expensive in the capital. ahead of Playa de San Juan-Cabo de Huertas with 2,738 euros per square meterIt is followed by the Center with 2 thousand 597 euros and Parque Avenidas-Vistahermosa with 2 thousand 176 euros. Completing these “top 5” were San Blas-Pau with 1,796 euros; and Pla del Bon Repós-La Goleta-San Antón with 1,706 euros.
When it comes to rent, the prices of Playa de San Juan-Cabo de Huertas also stand out with 12.3 euros per square meter per month.; Central, with 11.2 euros; and Pla del Bon Repós-La Goleta-San Antón, at 10.9 euros.
Finally, regarding other municipalities in the province of Alicante, The most expensive second-hand houses are in Moraira, with an average price of 3,668 euros per square meter; Benissa followed with 3,050 euros; and Benitachell, with 3,043. In Benidorm, the price is 2,532 euros; in Orihuela, 2.177; in Elche, 1,259; In Alcoy, it is 845. In the rental area, El Campello ranks first with 11.3 euros per square meter per month; Calpe followed with 11 points; and Altea, with 10.2.
So what were the reasons that caused prices to rise rapidly? Pedro Casamayor of Alicante real estate agency Casamayor attributes this directly to the lack of supply. And he gives capital as an example, in his own words, Flats for sale have fallen by 30 percent in the last year. “The years 2021 and 2022 were so good in terms of sales that there were fewer arrivals than departures, so prices increased,” he emphasizes. AND One of the factors contributing to this high commercial activity is, in his words, the war in Ukraine.“This has led to many citizens of both this country and neighboring regions deciding to settle here.”
He adds that these factors also serve to explain the increase in rental prices, but adds another condition such as tourist apartments in this area. “People find tourist rentals more affordable than residential rentals. “In addition, the new housing law, which imposes price limits, has also deterred some homeowners.”
Idealista’s spokesman, Francisco Iñareta, does not hesitate to state that 2023 is a bad year for those looking for a house at both the purchasing and rental level. “The high demand, which remained strong despite the interest rate increase, and the clearly insufficient supply were the factors that caused prices to continue to rise,” he underlines.