Sunday, April 7, 2024

NB-ESTATES IN BUSINESS AM: Despite rising prices, foreign demand for properties in Costa Blanca increases

While in many countries and regions property prices are falling due to the tightening monetary policy of the European Central Bank (ECB), there are still areas where buying a home has become more expensive. This is the case, for example, in Costa Blanca, where the price tag of a house skyrocketed by about 10 per cent last year. "Despite the increased price, demand is still on the rise," notes Carl Vorsselmans of the real estate agency "New construction in Spain".

In the news: Rising property prices are not stopping foreign house hunters from buying property in the Spanish province of Alicante, and Costa Blanca in particular.

  • Figures from the Spanish Property Registry show that almost half (43.76%) of foreign property purchases in the third quarter of 2023 were made in Alicante.
  • Over the past decade, that figure was never so high. It comes out at an average of 15.4 per cent.
  • "The Alicante region thus beats the other popular Spanish beach destinations such as the Balearic Islands (31.69%), Malaga - Costa del Sol (35.33%) and the Canary Islands (20.85%)," adds Freyke Van Looveren of "New Construction Tenerife".

Noted: Foreign buyers themselves are responsible for rising prices.

  • Vorsselmans notes that real estate prices in Alicante have shown steady growth since 2014-15. In 2010 - shortly after the financial crisis - they had reached a low point.
  • "But the average property price in Alicante is still lower than in other parts of the country. This can be attractive to buyers looking for value for money," he adds.
  • Experts predict that the property market in Costa Blanca (Alicante) will continue to grow, driven by continued demand and the development of new real estate projects.

Details: Real estate in Costa Blanca also catches the eye of Belgians.

  • "Of these foreign home buyers, 20 per cent are represented by Belgians and Dutch, followed by Swiss, Germans, Scandinavians and Ukrainians. British, German and Polish buyers include a strong presence in Benidorm, one of the Costa Blanca's attractions," clarifies the owner of "New Build in Spain".
  • In 2023, Belgians bought 4,566 homes in Spain. That amounts to an average of almost 13 homes per day.

Source: Business AM