Alicante has become one of the most attractive areas of the country for small investors looking for a way to take advantage of their savings in brick. The relatively affordable prices that can still be found in many popular neighborhoods mean that the profitability of renting out the property is high, which is why this type of operation has become one of the factors that stimulates the market.
Thus, in the specific case of the city of Alicante, up to 32.3% of the purchases that are registered are carried out by investors, which is five points more than the national average
And it's not just local savers. "At the Alicante offices we receive requests from delegations from Madrid, Castilla-La Mancha and many other areas that have clients who want to buy flats in Alicante as an investment."
The reason is none other than the high profitability that can be obtained. Thus, those responsible for Tecnocasa have given the example of the average home that its franchises sell in the capital of the province, located mainly in popular neighborhoods. An 83-square-meter home for which the buyer pays around 69,000 euros and for which he can currently claim around 500 euros of monthly rent on the market, which is equivalent to an annual gross return of 8.7%.
Some figures that far exceed the interest on public debt or the remuneration offered by current accounts or term deposits, and, of course, are also more attractive than the Stock Market, if one takes into account that the Ibex 35 has fallen by 13.8% in the last year. Thus, the percentage of investors over total operations has increased by three points since last year.
With these figures, what is also clear, for those who are considering the dilemma, is that, for the time being, it is still much more attractive to buy than to rent, as long as the necessary resources are available. Thus, a buyer who acquires the same typical home for 69,000 euros, may apply for a mortgage of up to 55,200 euros, for which he will pay a monthly installment of 248 euros, with a rate of 2.5% and a repayment period of 25 years. An amount that barely represents half the cost of renting that same home
The prospects of price recovery have caused customers to tend to overvalue even more than usual the price they can get for their properties when they put them on the market. Thus, on average, owners usually calculate that they will get 21% more from the sale than the price set by the market.
In this sense, another of the trends they observe is that the ranges in which the negotiations between buyer and seller move are widening. Specifically, if last year the average discount that was accepted was around 9.2% on the initially marked price, in 2022 the operations are closing with a discount of around 11.1%. Of course, in any case the final price paid is higher, since the square meter of used housing has become more expensive by 4.5%, according to company data.
Regarding the profile of clients in the city of Alicante, it is a person who buys their first home (66.2%), pays in cash (60%), is between 45 and 54 years old (44.6%), is of Spanish nationality (61.5%), has an indefinite employment contract (61%) and secondary education (42.2%).
A very dynamic market
On the other hand, the dynamism of the real estate market of the Valencian Community and the province of Alicante, in relation to the rest of the country. A comparison that makes clear the higher volume of transactions recorded in the area. Thus, while at the national level there are 2.4 transactions for the sale of second-hand houses for every hundred existing homes, in the case of the Valencian Community the figure rises to 2.8 and in Alicante it shoots up to 3.12 .
In new construction, the national average is 0.28 sales per 100 homes. The Valencian Community (0.32) is once again above the national average in this case. Alicante is, once again, the most dynamic Valencian province, now, in new construction (0.40). Finally, by towns in Alicante, in terms of dynamism in new construction, Pilar de la Horadada (1.10), Orihuela (0.90) and El Campello (0.80) stand out.
Buyers choose the northern part of the Costa Blanca for luxury properties. Sales of luxury homes in Spain by non-resident foreigners increased in 2021 and will continue to increase in 2022, with the Valencian neighborhoods north of the Costa Blanca being the neighborhoods most in demand by foreign buyers in the Spanish autonomous community. Broken down by nationality, luxury home purchases in 2021 are evenly distributed across countries: UK, Netherlands, Belgium, Germany, France, Switzerland, Poland, Denmark, Norway, Czech Republic and Austria. The trend in 2022 after the start of the invasion of Ukraine is the same as in 2021, with the addition of the Ukrainian, Estonian, Lithuanian, Latvian and Slovak nationalities. Buy a luxury home for a second residence or permanent residence, being the towns of Moraira, Benissa, Dénia, Jávea, Calpe, Altea, Benitachell, Finestrat and Benidorm in the north of the Costa Blanca.
This is the Delfin Tower building
With 98 meters high, 22 floors and 39, this skyscraper is configured as the last residential apartment building for sale in Benidorm on the beachfront that will see the light in many years. For this reason, with the aim of putting an end to its building process and beginning its new stage as an exclusive reference skyscraper in the town, Goya Real Estate, the developer that has raised the construction of the property. The residential tower is now available to its current and future owners.
Location next to the Mediterranean Sea
Striking architecture. Characterized by a peculiar sail shape, the double curvature of the building's façade has not only been a real architectural challenge, it has also allowed each floor to have a unique character, moving away from the concept of overlapping repeated floors.
Construction with a sustainable seal, thanks to its Leed Gold certificate. It is the first residential tower in Benidorm to have this standard. This distinction endorses its high standards in terms of the use of sustainable and quality materials, energy and water efficiency or indoor air quality.
Privacy and comfort. For its design, various aspects have been taken into account: large space between floor and floor to achieve a greater sense of spaciousness, lots of natural lighting, uninterrupted views of the beach and the sea, individual terrace, high level of privacy, since the first floor of housing really corresponds to a 4th or 5th floor, etc.
Very unusual common areas. Delfin Tower is made up of common spaces where you can enjoy the views, relax, organize events, take care of your body and mind, or watch the sunset. All this, thanks to a high-rise lobby, a state-of-the-art gym with sea views, a heated pool, a social club, an infinity pool in the garden area, outdoor paddle tennis courts or unique halls with striking artistic details on each floor.
Exclusive interior and exterior design. Alejandra Pombo and her team of interior designers, as well as the architect Jesús Pastor Muñoz, apply their aesthetic criteria with a selection of quality materials, elements and finishes, as well as through innumerable details that accentuate the complex's goal of bringing the concept of Modern luxury apartments for sale in Benidorm.
Homes with state-of-the-art equipment and home automation. All properties include fully furnished kitchens, top-brand equipment, a home automation system to control blinds, temperature and humidity, or lighting projects adapted to the characteristics of each home.
The Association of Real Estate Developers of the Province of Alicante (Provia) is carrying out a communication and public relations campaign with the aim of promoting awareness of the Costa Blanca as a tourist and residence destination in Belgium. The objective is to transmit the benefits of the Costa Blanca, the stability in the real estate market and the ideal destination for teleworking. The campaign is carried out with the support of the Costa Blanca Provincial Tourist Board.
As a result of this campaign, Provia is present every week in the Belgian media related to real estate, tourism and lifestyle. In addition to press releases and opinion articles, the association has participated in several interviews, and is organizing other actions, until the end of the year, aimed at publicizing the market and the existing housing supply.
Among these actions is the press trip that has taken place these days, organized so that different journalists could learn first-hand about the benefits of the territory and the possibilities to invest, reside and telework. Hand in hand with Provia, the Costa Blanca Provincial Tourist Board and several town halls, for four days, Belgian reporters have been able to learn about the province's tourist offer.
During the first day they visited the northern part of the province, towns such as Dénia, Moraira, Benidorm or El Campello. In the second, they toured other southern municipalities such as Torrevieja and Orihuela, among others. In addition, on the last day a meeting was held in the capital to publicize the real estate offer on the Costa Blanca.
The Costa Blanca has become one of the favorite destinations for Belgian residential tourists. This market is one of the most important for the second foreign residence in our province, not only in number of sales, but also in terms of their average price, which in the first quarter of 2021 increased by 14%. Currently the profile of the Belgian residential tourist is slowly changing, with an average age that has dropped to 52 years, and purchasing power that is increasing. In this regard, he stressed that the prices of new homes purchased by this market range between 300,000 and 600,000 euros for single-family homes, and between 180,000 and 350,000 for apartments.
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