The year is anticipated to close on a note of resilience despite ongoing economic uncertainty driven by inflation, higher interest rates, and tight housing supply. Analysts expect housing prices to rise by about 3% to 5% on an annual basis, reflecting a cautious but stabilizing market.
On the sales front, the latest figures point to a recovery pattern that mirrors a shift away from suppressed mortgage demand and a growing interest in home transitions, all amid the drag of inflation. If current trends hold, total sales could approach levels seen in 2021, with early forecasts hovering around 566,639 units and possibly nearing 600,000 in the peak year. This projection assumes inflation cools and central banks maintain measured policy actions.
– What is viewed as the key to the real estate sector’s resilience in the face of rising prices?
The core challenge remains the shortage of available housing. Even as developers push forward with new projects, the market hinges on a favorable building environment and faster land-use reforms that unlock development potential. A more conducive policy and regulatory climate would accelerate the transformation of land for housing, easing prices and meeting rising demand.
There is a growing consensus that launching more construction projects benefits not just the housing market and the economy, but society as a whole. Expanding supply helps stabilize prices and broadens access to housing for a wider range of households.
This objective is central to Solvia. In today’s climate of uncertainty, with demand expanding and supply tightening, maximizing profitability in land management remains a critical priority for professional real estate development. Recognizing this need, Solvia is strengthening its Land Management and Urban Development division to oversee more than 20,000 parcels and over 1,550 million square meters in total value, with a portfolio worth about €2,000 million. This focus supports responsible growth and sustainable urban planning. (Source: Solvia internal outlook)
– Does rising rent influence the decision to buy a home?
Affordability is a decisive factor for many buyers. When mortgage payments align with or fall below typical rent, buying becomes increasingly attractive, especially when households can marshal an initial investment. Yet the broader takeaway is the strong incentive for investors, reinforcing real estate’s role as a store of value during inflationary periods. In the Solvia Market View 2022, the gross rental yield in the second quarter stood at 7%, roughly seven-tenths higher than the same period in the prior year. The private rental segment currently manages more than 25,000 leased assets, underscoring steady demand in rental markets. (Citation: Solvia Market View 2022)
– What real estate opportunities exist in Alicante today?
Alicante presents attractive opportunities for buyers, thanks to housing prices that remain below the national average. The II Solvia Market Outlook 2022 reported a second-quarter price per square meter of €1,620 in buying and selling, versus a national average of €1,957. The province also stands out for its coastal appeal, drawing significant tourist activity and strong second-home demand. In particular, Costa Blanca has a notable share of foreign buyers, surpassing 40% of total transactions this year, outpacing other popular regions like the Costa del Sol or the Balearic Islands. (Source: Solvia Market Outlook 2022)
In addition to traditional markets, buyers from Northern Europe—especially middle Europe—represent around half of Alicante’s foreign transactions, with average ticket sizes that reflect a steady appetite for quality properties. The leasing market mirrors these trends, with rents averaging around €8 per square meter monthly, and pockets offering higher values where demand remains solid. Alicante also boasts the highest provincial population, housing stock that accounts for about 11% of the national total, and ongoing consolidation despite a 26% year-end decline in the capital. This combination positions Alicante as a leading, accessible market with broad appeal. (Citations: Solvia Market Outlook 2022)
Solvia notes that the province hosts more than 6,000 homes for sale, with over 30% allocated to second-home areas. Torrevieja stands out as a notable market within this portfolio, illustrating the region’s capacity to blend residence with leisure opportunities.
– How can access to housing be made easier for young people?
Youth in Spain are reaching housing independence around age 30, several years after the European average, largely due to the challenge of securing suitable properties at affordable prices. Given that renting is a common option, the strategy centers on expanding rental supply and driving more favorable pricing. Achieving this balance requires guarantees for landlords to encourage renting, along with tax incentives and clearer legal frameworks that support private investment. Concurrently, affordable housing initiatives such as build-to-rent programs are essential. Solvia has managed more than 9,000 rental contracts and emphasizes the importance of public-private partnerships to ensure affordability, including programs like the Vive Plan in the Community of Madrid, which seeks to provide newly built social rental housing for those in need. (Source: Solvia program notes)
– What opportunities does Solvia offer and how does it assist buyers through the process?
Solvia operates as a real estate services firm within the Intrum group, serving individuals, companies, and investors across all market segments since 2019. With a portfolio exceeding 150,000 assets under management, Solvia provides comprehensive management for residential, commercial, unique properties, and land, available for sale or lease. Notable strengths include specialization in large rental portfolios, a dedicated new construction unit, and robust land management capabilities. The firm maintains a multi-channel presence through its website, digital tools, Metaverse activities, an extensive sales network, and a distinctive franchise model (Solvia Stores) that provides broad market reach.
Solvia also promotes a compelling set of assets under promotional campaigns such as Houses under €99,000, Discounted floors, Second Residence, Beach or Mountain properties, and Lands with houses. These promotions help shorten the path to ownership or rental for interested buyers, with a focus on properties in Alicante and surrounding areas. The client journey is supported from the first contact to the final signing, with a personal advisor guiding each step. The omnichannel approach of Solvia Digital ensures that the entire process can be managed in a tech-enabled environment if desired.
– Has the buyer profile changed?
Solvia observes that the rise of the pandemic accelerated a shift in housing needs toward larger spaces, outdoor areas, and higher-quality features. While these preferences remain relevant, the emphasis on location has become more flexible as the market normalizes. The interest in new construction remains strong, with Solvia continuing to leverage its dedicated unit to serve this demand. In recent years, new-home buyers have included not only upper-middle-income families but also professionals seeking remote work-friendly homes away from dense urban centers, young buyers seeking first homes, and investors looking to capitalize on the development boom. There is also growing demand from foreigners who seek detached houses across markets in Western Europe, with Dutch, Belgian, and German buyers increasingly contributing to the mix. They often favor two out of three-bedroom detached residences, reflecting a preference for space and privacy.