If you have been trying to buy or sell a property in the province for a while, you will also have noticed it, prices are going up . February was the month with the highest price for real estate in Alicante since December 2007 , before the bubble burst. A 100-meter house had an average price of 171,300 euros last month, while in December 2007, the price was 173,700 euros.
The price increase is 6.9% compared to February 2021 , when the same 100-meter property would have cost 160,200 euros. The data is from the Idealista real estate portal, which has more than 700,000 homes on offer in Spain, 76,000 of them in the province, and offers the history of the monthly price in the province since 2006.
- In the first place, to teleworking , since people who lived in the interior of the Peninsula have decided to move to Alicante and other places on the coast to work, as well as foreigners who have chosen the Costa Blanca.
- Secondly, to the accumulated demand of the resident in the province to change housing. "Many people have decided to change to a house with a terrace, garden or land" as a result of confinement. In addition, Zaragoza points out that "this type of client was waiting for the return to normality " to make the purchase effective, and "for many that moment is now."
- Finally, the accumulated demand of the foreign tourist . Zaragoza points out that, "although we have largely lost the British", it is "increasing that of other nationalities".
These reasons are also related to the most demanded type of housing in the province, which are single-family homes . Something that Zaragoza also highlights, who indicates that, "since the second half of 2021", these types of homes "are increasingly sold", despite the fact that "their price does not stop increasing". In addition, Zaragoza indicates that at a national level, prices are rising both in Madrid and in coastal areas.
"Clients who wanted to change to a home with land waited for the return to normality to buy, and for many that moment is now and will be until the end of the year."
This statement coincides with the data from the Idealista portal. In addition to Alicante, other provinces in which the price of housing has returned to that of 2007 are Malaga, the two Canary or Balearic districts . In Malaga, the price per square meter is 2,481 euros, even higher than in 2007 and 8.5% more than last year; in Tenerife, it is 1,955 euros, 8.9% more than in February 2021; in Las Palmas, 1,964 euros, 2.3% more; and in the Balearic Islands, 3,351 euros, 7.1% more.
The factors of the buyers are also linked to those of the market. The new demand and the increase in the cost of raw materials are "affecting new construction" and causing the "increase in the price per square meter of land," says Zaragoza. In addition, the low interest rates that have been maintained until now affect both new construction and second-hand properties, comments the Inversia group agent.
The price increase in the province of Alicante is not reflected in the entire Valencian Community , since Alicante is the only one of the three constituencies that sees the price of its homes return to that of 2007. In the province of Valencia, the price has dropped . Last month, the cost of a 100-square-meter home stood, on average, at 121,900 euros, 0.6% less than last year. In the province of Castellón, for its part, the same type of home had a price of 108,000 euros, 2.7% more than in the same month of 2021. However, in 2007 it would have cost 168,400, 56% more than nowadays.
The rise in the price of housing does not only affect the purchase and sale, but also the rental . According to the same real estate portal, the average cost of a home is 7.6 euros per square meter, 6.8% more than last year. The rental price is the same as it was in October 2007 and the highest since then.
- In Alicante the price of housing has fallen by 1.3% compared to last year and 20% compared to 2007. However, some neighborhoods in which single-family homes proliferate, such as Playa de San Juan, do register a rise price compared to the previous year.
- In Elche , the cost of a residential property has increased by 3.5% compared to 2021, although it still does not reach the price prior to the crisis , except in the district of La Marina.
- Orihuela is one of the municipalities in which the price increase is more pronounced . The average home in Orihuela is 7.2% more expensive than in 2021. In Orihuela, the price has only risen since the real estate crisis, and a home is 30% more expensive than at the beginning of 2008.
- In the Marina Baixa, the cost of a property is also on the rise . In La Vila Joiosa the price has increased by 12.4% compared to 2021, although it is still below the 2007 price; and in Benidorm it increased by 1.7% compared to last year, without reaching the pre-crisis price yet.
- The capital of the Marina Alta is one of those that has returned to the price of 2007 . A home in Dénia costs 2,075 euros per square meter, the maximum since October of that year, and 6.5% compared to 2021.
- Elda , for its part, has registered an increase of 8.9% compared to 2021 in the price of its homes. However, the comparison with 2007 cannot be made because the portal does not offer such extensive data for the capital of Medio Vinalopó.
- The same happens in Alcoy , where the comparison only covers up to 2009. In the municipality of Alcoy, the price of housing has increased by 11% compared to last year .
- Finally, in Cocentaina it is not possible to establish a comparison with the situation prior to the crisis, although compared to last year, the houses are 8.9% more expensive .