Alicante is Spain’s most popular province for foreign purchasers of real estate. According to Q1 2018 statistics of the Association of Land and Mercantile Registrars of Spain, 41% of all property transactions were completed by foreigners, while accounting only for 13% nationwide.
Demand for Costa Blanca exceeds the national average
Alicante makes is among the three most desired Spanish vacation areas. 10,000 real estate deals were completed in Alicante in Q1 2018, as reported by the Association of Registrars, which was 18% more year on year. The nationwide increase was a little bit worse; during the first three months of 2018, 15% more real estate objects sold than during the last year. All in all, property for sale in Costa Blanca remains in high demand for buyers from all over the world.
Real estate prices showing an upward tendency
As reported by the Spanish property media Idealista, in June 2018, the average price of the square metre in Spain was around €1,664. In Alicante, however, property prices are lower than the average, running at €1,331/m², which is two times cheaper than in Madrid and Barcelona. As for the largest Spanish cities, the chances of rising prices in Alicante are remarkably higher than in Barcelona or Madrid, for example, where the numbers have nearly archived the pre-crisis peak figures.
Residential homes taking over the region
Today in Alicante there so many new houses, building as fast as never before since 2008. As reported by the Spanish web portal Expansión, 2,100 residential real estate objects began to be developed in the Alicante region in the first quarter of 2018, 73% more than in the same quarter during the last year. According to Anna Boyarchukova, Tranio sales manager for Spain, “the development growth is the indication of the recovery of the Spanish market”.
Rent is a beneficial enterprise
Alicante is among the top four Spanish cities where tourists rent apartments the most, as reported by the National Institute of Statistics. In 2017 visitors spent 7.7 million nights in Alicante residential units, therefore rising the profits of the Spanish rental services. Rental rates, both for short-term and long-term leases, are steadily growing every year. In fact, Alicante is among the few regions where the rental yields are growing really fast. As a result, property for sale in Costa Blanca remains among the less risky ones, generating a steady income for homeowners. The average property yield in Alicante is 7% for a year.