The real estate market has been revolutionized since restrictions on the Covid pandemic began to ease, which in turn has affected second-hand homes. And when strong demand leads to a reduction in supply, inevitably, increased prices noticeably more. This is the case for the province of Alicante, which is only behind Malaga with 9.3% at the beginning of the annual increases at the national level. this An average of 1,670 Euros per square meter is paid.Likewise, they are approaching 2,079 euros for the new home, which casts doubt among buyers on choosing one option or the other. The municipalities of Marina Alta, Pedreguer, Teulada and Calp, recorded the largest increases.
Last year was a very positive year for housing, as sluggish demand and the decision of many families to move into larger homes after quarantine, strong increase in sales. This was expressed by Fotocasa Director of Operations María Matos, who stressed that this strong demand is accompanied by a reduction in stock, “leading to a 21-month consecutive year-on-year increase in prices in the second-hand market”
According to the data provided by this portal’s property index, the inter-annual variation across Spain was 3.5% in July, although there are regions where it is much higher. This is the case without going any further in the province of Alicante. Only Malaga is above this with a growth of 10.7% and a price of 2,648 euros.
Although Alicante is at the top of the increases, it is not one of the regions where second-hand housing is more expensive. there are 14 provinces exceeding this. Madrid is the most expensive region, with an average of 3,320 euros per square meter; Guipuzkoa with him 3192; Balearic Islands with 3,094; and Barcelona with 3,003. In any case, yes The province of the Community of Valencia where prices have increased the most.In Castellón, the increase last year increased by 3.2% to 1,140 euros per square meter, while in Valencia it remained at 1.2%, leaving the price at 1,450.
Regarding the municipalities of Alicante that recorded the largest floods, Pedreguer tops the list with 53.4% annually and a price of 1,706 euros; The teula added 27% to 2,178 euros; and Calp leaves 24.2%, at 2,878 euros. It is followed by Pilar de la Horadada with 23.3% and 1,883 euros and El Verger with 21.5% and 1,243 euros in short distance. In the capital Alicante, the increase was 13.5%, reaching an average of 1,836 euros.
The gradual increase has caused prices to come closer and closer to newly built housing prices in the state, which are currently at 2,079 euros per square meter, according to the Trovimap portal, raising suspicions among buyers.
Marifé Esteso, president of the Alicante Association of Realtors, explains that “there are no statistics that can cover the entire property market”, although he acknowledges that there has been an increase in prices. In his own words, “Demand built up during the worst of Covid, which caused prices to rise.” Operation is ongoing for the time being, but Esteso said:Increase in interest rates and return to school with the rapid increase in inflation“.
Jesualdo Ros, president of the Association of Real Estate Developers of the Province of Alicante (Provia), points out that the lower offer leads to an increase in prices, “above all – he emphasizes – because of this pressure – foreign buyers exist in the province”.
Preferred place for a second residence
A survey conducted by the real estate portal Pisos.com and published by the Spanish Mortgage Association reveals that the province of Alicante is the preferred place to buy a second home in the entire country.
According to the order of preference and according to the aforementioned study, the coast continues to be in greater demand than the interior. Thus, the most desirable provinces for a second residence are Alicante (8.8%), Malaga 8.5%, and Valencia 7.3%.
A good indicator of the health of second home purchases in Spain is the percentage of those bought by foreign citizens. According to the latest data corresponding to the first quarter, 13.17% of total homes sold in the country have been formalized by foreigners, returning to pre-pandemic levels, according to the College of Registrars. Again in this section, Alicante is followed by Alicante with 40.7%, Mallorca with 35.37% and Malaga with 33.7%.