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.
The European property market has shown clear signs of recovery so far this year; with the increase in house prices being the main trend. In this sense, searches for villas and condominiums in Europe have increased exponentially, with Spain being one of the most sought after destinations.
Demand is active, supply is tight, and mortgage costs remain low. That is why the demand for luxury homes in Spain continues to rise, and the news about the real estate boom continues. In short, the consolidated real estate sector has been one of the main engines of economic recovery in Spain. In this context, the luxury market looks with good forecasts and spends this 2022 with optimism.
Growth of the luxury housing market in 2022
With stock market earnings booming, mortgage rates locked in, pent-up demand and renewed consumer confidence, the luxury housing market is experiencing a busy season.
Working from home and remote training allowed people to enjoy the benefits of a resort lifestyle. In fact, it is estimated that the second home market will see a large number of buyers willing to buy luxury homes even in the off-season.
Luxury housing: a safe investment
Considering that the stock markets are in a time of many fluctuations, many investors decided to invest in the safest assets. But what are the alternatives?
For one thing, keeping money in a bank account is not a good option. According to data from the National Institute of Statistics, inflation in July was 10.8%. So, in this case, the purchasing power goes down if the money is not profitable. In addition, banks charge their customers 0.5% of savings when the amount exceeds 500,000 euros. On the other hand, in this context, luxury residences add to their appeal by their safe haven quality. Which means it's a good long-term investment. In fact, this is the reason for the increase in demand.
High-end housing movements in the coming months
When looking for homes in the Spanish luxury market, around 41% of buyers are looking for properties above 2.5 million euros, while the majority are looking for luxury flats; that is, less than 2.5 million.
For its part, the demand for virtual tours for the purchase of luxury homes is increasing, since the journey is easier, especially for international buyers, who wish to buy homes without having to visit Spain. In this sense, unlike the classic home purchase destinations for foreigners, such as the islands or the Mediterranean regions, the cities of Madrid and Marbella currently lead the first-tier global market.
Luxury houses in Orihuela Costa
This trend is especially notable in Orihuela Costa, where some of the most expensive houses on the market are being bought by wealthy owners who smell an opportunity to invest their money in a property that will protect them from further economic turmoil.
The luxury home market in Orihuela Costa has proven to be resilient to the pandemic, with sales volume remaining stable throughout 2022. Although sellers continue to see some price reductions on their properties, they tend to be modest. , and buyers remain willing to pay close to the asking price for luxury homes in this area. And the reason is that Orihuela Costa is a city that is located on the Costa del Sol. It has a favorable climate to live all year round, and easy access to various services such as shopping centers, golf courses and international airports.
The area is also home to many celebrities and other wealthy people. With so many amenities available, it's no wonder that Marbella was one of the first places in Spain to see property prices rise over the past decade.
Luxury houses in Benidorm
As has already been seen, the luxury markets in Spain are booming. In fact, according to a new report from international consultancy firm Knight Frank, it has been revealed that Benidorm is now Europe's fastest growing city in terms of high-end property sales.
Benidorm is consolidating its position as one of the preferred destinations for the ultra-rich, and luxury housing rates are expected to increase by 6% in 2022. On average, the largest supply of luxury homes in Benidorm stands out in residences of 105.5 square meters for one million dollars.
Trends in the luxury real estate market
Beyond space and location, investors focus on the features and condition of the property. The closing activity corresponds to second-hand homes that have been renovated to the buyer's liking, or that are homes with high quality materials in elements such as windows, floors, kitchen and bathroom.
In general, homes are usually equipped with the latest technologies in home automation, which facilitate automatic and efficient management, and provide security and comfort. Furthermore, sustainability and efficiency will continue to be increasingly important criteria, but will not have a significant impact on the final price of a property.
Similarly, the most important green trends in the luxury residential area are the use of renewable energies, the strategic direction of the property and the integration of artificial intelligence in the operation of the home.
In short, experts believe that quality real estate has a great future ahead of it. In fact, high-end real estate is still the best answer to price inflation. In addition, it is the most profitable investment in the world because its happy owners will enjoy it with their families for a long time.
The sale of homes increased by 18.8% year-on-year in June 2022, according to the latest INE report. In specific data, more than 58,000 operations were closed, the best figure since June 2007. And although it is clear that the real estate market continues to break records, statistics warn that the trend is beginning to change: according to the same report, operations they fell 3.4% in June compared to May.
Let us remember that, once the quarantine ended, the demand for flats skyrocketed nationwide thanks to the accumulated savings of families and the need of many people to find larger spaces, with a terrace or even leave the cities and move to the outskirts. The INE figures prove it: in 2021, 517,376 properties were sold throughout Spain, which represents an increase of 35.2% compared to 2020. We found the house of your dreams
The Costa Blanca continues to lead the sale of housing to foreigners, registering more than 5,100 operations in the second quarter (4.47% more than in the previous quarter). Thus, it continues to be above its main competitor, the Costa del Sol (Málaga), which has sold some 1,600 fewer homes to foreigners.
The weight of the international client is also higher in Alicante than in the rest of the provinces. Specifically, more than 42% of property buyers in the area are from outside Spain, well above the national figure of 14.66%. Alicante is followed by Santa Cruz de Tenerife and the Balearic Islands, with 38.3% and 34.6% respectively.
Even so, when comparing the total sales to foreigners this quarter with the same period in 2021, the increase in these operations on the Costa Blanca has been 93.46% in one year, almost double, reflecting the recovery of international purchases after the downturn of the pandemic.
The British, at a minimum; ukrainians increase
The British continue to choose the Costa Blanca as their preferred destination when buying a home. At the national level, although they continue to be the foreigners who buy the most housing in Spain in absolute terms, they continue to lose relative weight with respect to the total number of international buyers. In the second quarter, 9.77% of these clients were British, the second lowest figure since data is available. They have also decreased in total purchases (11.26% less purchases than in the first quarter).
Alfredo Millá confirms the trend: «Unfortunately, the British buyer who, together with the Spanish, had an enormous weight in the purchase of foreigners in Spain (it reached 24% of the total purchases in 2007), has already remained as a market minor, especially in new construction, of which they buy very little. They focus on resales and low-priced homes."
Moreover, the top five nationalities (British, German, French, Moroccan and Belgian) have lost relative weight compared to the previous quarter in favor of other origins. The largest increases in relative weight have been carried out by Poles and Ukrainians, confirming the effect of the war in Ukraine on the international movement of people and the real estate market.
However, although the relative weight of the total purchases by foreigners has decreased in important nationalities such as Germans, French and Dutch, the absolute numbers show that practically all of the most relevant nationalities are at maximum levels of purchases in recent years. Except for the British. The nationalities that have grown the most in the number of absolute purchases compared to the previous quarter were Italians (22%), Romanians (17.9%) and Germans (6.3%).
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