Real estate activity in the province of Alicante is going like a shot, as the latest data provided by the Spanish Property College and Trade Registrar shows. According to this information, in the second quarter of the year, 12,146 sales transactions in this region, which is the best figure in the last 15 years.. However, this fact has an explanation that is still conditional and will be diluted in the coming months. Statistics add up on the one hand still limited demand generated during the covid pandemic, on the other hand Recovery in purchases by customers from countries surrounding Ukrainethose who decide to leave that area due to armed conflict. Therefore, the sector considers that the ceiling should be reached and after that there will be a gradual decrease in operations as a result of the worsening economic situation.
The total number of home sales recorded in the Community of Valencia in the second quarter reached 24,906, the highest result in the last 15 years. surpassing 2018 and 2019 balances with solvency. In particular, transactions increased by 2.5% compared to the previous quarter and by 32.9% compared to the same period of the previous year. As such, the Community is the third Autonomous Community with the highest total sales, after only Andalusia and Catalonia, and has a market share of 15.20% relative to Spain combined, surpassing Madrid in more than 3,000 operations. Of the total operations, 21,922 correspond to used residences, a segment where the Valencia region ranks second only to Andalusia, and the remaining 2,984 to new residences, which ranks fourth after Andalusia, Madrid and Catalonia.
According to data provided by the College of Registrars, the province of Alicante has a lot to do with this evolution and with 12,146 operations this second quarter, it recorded its best 15-year numbers of over 10,534 in 2018 and 9,473. 2019. To find a higher record, you need to go back to 2007, when 13,967 transactions were formalized in the same period. Compared to the first quarter of the current year, which closed with very good figures, the increase was 0.8%. Alicante became the third city with the highest sales, just behind Madrid and Barcelona. Of the total, 1,398 became new homes, in a ranking that surpasses only Madrid, Barcelona and Malaga.
It should also be noted that in this last quarter, Spain made 163,909 purchases, representing a decrease of 0.2% from the previous quarter, adding more value to the data corresponding to both the province of Alicante and specifically the province of Alicante. as the Community of Valencia in general.
The declared price per square meter of housing in the community reached 1,432 Euros, exceeding the result of the previous quarter by 1.5%. Eighth cheapest price in Spain, up 2.4% on average to 1,957 euros. The Balearic Islands, Madrid, and the Basque Country have the most expensive rates, while Extremadura and Castilla-La Mancha are at the opposite extreme. As a result, the increase in prices in the province of Alicante was more, especially by 4.4%. square meter prices brought to 1,620 Euros.
The report reveals the following regarding the type of housing: 21% of operations correspond to detached housesClose to all-time highs reached in Spain in the fourth quarter of 2020. Overall, the trend that started with the pandemic is declining
It was underlined from the College of Registrars that the housing market has shown remarkable strength, particularly in the context of uncertainty and with negative expectations on related variables. The annual figures and regional distribution of results confirm the good dynamics of the housing market, with a predictable correction towards lower figures than those achieved in previous quarters, but with very significant activity levels over a longer period from a retrospective perspective. -period approach.
Health crisis causes one-time decline in residential real estate activityHowever, the recovery process started quickly, leading to figures far above the figures reached before the pandemic. Registrars point out that house arrest causes intense home use and leads many citizens to consider changing their flat, which in turn has led to this overreaction of the market, with savings levels at the maximum parameters. still showing its effects.
A very similar assessment is made by Jesualdo Ros, general secretary of the Real Estate Developers Association of the State of Alicante (Provia). blocked demand generated during the pandemic, currently being released. “We must take into account that the data currently published corresponds to operations developed earlier, both in the last quarter of last year and in the first of what is available – emphasizing that it coincides with a time when the economic situation is much more favorable”.
Ros also refers to the increase in demand recorded by customers from countries close to Ukraine. In his words, “we are talking about both Ukrainians and citizens of neighboring countries. they decided to change their place of residence as a result of the armed conflict. They don’t represent significant volume on their own, but when combined they have contributed to growth.”
But the industry was convinced. Sales will fall in the coming months“because – adds the person in charge of Provia – the effect of stifled demand will gradually fade as the economic situation worsens”.
Antonio Fernández, CEO of Maisa Promociones, reassured that the first six months of the year were “extraordinarily strong in the real estate market, both in new construction and second-hand housing, among other things due to the ongoing operations at the moment.” what is reflected in the statistics comes a little late.” However, the sector representative believes that there will be a gradual decrease in transactions after that, because “the economic situation is not so clear anymore.”
There is another factor that will affect this downward trend, for example inflation and Increase in costs incurred by the industry. “This phenomenon – as Fernández highlights – has not yet been reflected in new homes sold, but will start to be noticed next year,” he said.