With data from the end of 2023, the province of Alicante has recorded a 0.3% decrease in sales and purchases, which shows its strength in the real estate sector, compared to the -8.7% decrease in Spain.
According to the transfer statistics of the National Statistics Institute (INE), 42,320 homes were sold in the province of Alicante between January and October, a very slight year-on-year decrease. This amount represents 50.39% of property sales in the Valencian Community.
Situation of the real estate market in Spain
- Inflation: the prices of all products and services, including housing, are rising.
- Law of supply and demand: demand for housing is higher than supply, so prices rise.
- Geopolitical instability: Wars in the West (Ukraine, Gaza) lead to uncertainty and increases in construction costs, resulting in a slower pace of residential construction.
- Legislation: the Right to Housing Act, which delimits stressed areas, with limits on price increases. The law prevents landlords from evicting vulnerable tenants without prior conciliation or arbitration. The legislation has led to a shift from long-stay to short- and medium-term rentals.
Forecasts for the real estate sector in Spain in 2024
Idealista also expects a fall in transactions, as well as a reactivation of part of the demand.
According to the notaries, the accumulated volume of mortgage contracts between January and October amounts to 230,476 operations, with a fall of 23% year-on-year.
In addition to the fall in the signing of new mortgage loans, the year 2023 has also been marked by rises in the Euribor, above 4%, by the boost in mixed mortgages to the detriment of fixed mortgages; by a wave of mortgage changes by households and the early repayment of loans.
Real estate market report in Costa Blanca North
We explain how the price of housing is in the area and our forecast
Forecasts for the property market in Moraira – Costa Blanca North
In her opinion, as a real estate expert in Moraira and Costa Blanca North,“in 2023 real estate transactions have slowed down a little, but even so, the volume of sales and purchases has been good, with many investors, especially Dutch who continue to bet on our area as a safe value.
In 2024, I think the luxury real estate market will become more important