The Alicante Province Property Developers’ Association (PROVIA) has presented the report “The housing market in Alicante. A graphic analysis”, prepared by the valuation company Euroval. It describes the shrinking supply and its effect on rising prices, and also looks at the growing number of sales involving foreigners.
The share of homes bought by foreigners is rising, not because of a significant increase in demand on their part, but because of lower activity among Spanish citizens and residents, driven by rising prices, higher interest rates and the availability of mortgages for the average buyer.
Foreign investors currently account for 87% of sales in Orihuela, 40% in Alicante and its suburbs, and around 20% in Elche. Most of them are citizens of the Netherlands, Belgium and the United Kingdom, despite a large influx of people from Eastern and Northern Europe.
Resale homes account for an average of 88% of sales, and their volume is falling, especially on the coast, with the exception of Benidorm and Villajoyosa. All this supports price growth, which has slowed only very recently. New builds are also rising in price because of the shrinking supply and the growing number of properties with better energy efficiency and better layouts, which is partly linked to a general improvement in construction quality.
