The Price of Second-Hand Housing in Alicante Reaches Record High Due to Lack of Supply

The price of second-hand housing in the province of Alicante has started the year in the midst of an acceleration process. And it is that the shortage of supply, together with the rise in interest rates and strong foreign demand, have led to an interannual increase of 15.4%, which places this territory as the fourth at the national level in which it has become more expensive, reaching 1,817 euros per square meter. It is also the largest increase recorded since the beginning of the real estate crisis.

Following in the footsteps of new housing, which in the province of Alicante has become 14% more expensive in one year, second-hand houses have also seen their prices skyrocket by an even higher percentage. This is revealed by one of the main real estate portals in the country, Fotocasa, in its latest report corresponding to this past month of February. According to the information collected, while in Spain as a whole the year-on-year increase stood at 9.9%, reaching 2,086 euros per square meter on average, in the province of Alicante the increase was five and a half points higher.

In fact, There are only three territories in which the increase has been more important. These are the Balearic Islands, with a growth of 20.2%, which leaves the price at 3,466 euros; Santa Cruz de Tenerife, with 19.1% and 2,150 euros; and Navarra, with 17.5% and 1,914 euros. The smallest increases correspond to Albacete, with 1.6% and 1,355 euros; Ciudad Real, with 1.5% and 974 euros; and Asturias, with 1.2% and 1,602 euros. The province of Alicante is also in the twelfth position of the most expensive territories, behind the Balearic Islands, Madrid, Gipuzkoa, Barcelona, ​​Bizkaia, Málaga, Álava, Girona, Santa Cruz de Tenerife, Navarra and Las Palmas.

The increase in prices in Alicante has also been higher than the average for the Valencian Community, which brings together an increase of 11.1%, which leaves the average price at 1,608 euros. The rise has been 7.1% in the province of Castellón, with a total price of 1,203 euros; while in Valencia it has remained at 6.9%, with 1,532 euros.

Regarding the municipalities, the largest increases both in the province and with the Valencian Community correspond to Pilar de la Horadada, with a rise of 59.4%; El Verger, with 47%; Rojales, with 46.4%; and Finestrat, with 41.7%. Behind are Pedreguer, with 39%; and Calp, with 36.4%. Regarding the most expensive prices, Calp leads the regional ranking with 3,293 euros per square meterfollowed by Alfaz del Pi with 3,021.

The largest increase among the capitals of the Community was that of Alicante, with 18.3%, which leaves the price at 2,012 euros per square meter. In Castellón the rise was 7.9%, to stay at 1,320 euros, and in Valencia 0.9%, with 2,354 euros.

Acceleration

María Matos, Director of Studies at Fotocasa, points out that these increases represent the greatest acceleration in the last 17 years. “This is a rise that places us at levels similar to 2006, in the warm-up period prior to the real estate bubble,” he underlines. When specifying the reasons for this growth, Matos refers to the change in the monetary policy of interest rates by the ECB, which, by making mortgages more expensive, has caused the demand for second-hand housing to resurge as a result of more affordable and put pressure on prices due to the scarcity of supply.

However, from the real estate portal they consider that these increases are temporary, and that it is a matter of time before the price begins to show signs of moderation and that it returns to a stable path, on the basis that the rate of mortgage increase caused by the Euribor will also end up taking its toll on second-hand houses.

For her part, the president of the Association of Real Estate Agents of Alicante, Marifé Esteso, agrees that the low supply is pulling prices down. “It depends on each municipality and region, but there is no doubt that, in general terms, the offer of this type of housing is quite limited,” she emphasizes.

A phenomenon that, according to Pedro Casamayor, from the Alicante real estate company that bears his last name, It has a lot to do with the strong demand in the province from foreign customers.. In his words, “to the usual pressure, the effects of the war have now been added, which have led to an increase in demand from both Ukrainians and other Eastern countries, and not only second-hand houses, but also new construction.