By Anna Ellis •
Published: 10 Dec 2023 • 8:36
Alicante: A Beacon of Stability in Spain's Real Estate Landscape. Image: gzabala / Shutterstock.com.
In an era rife with economic uncertainty and surging interest rates casting shadows over regions across Spain, Alicante emerges as a bastion of stability and profitability in real estate.
It stands tall, representing over 50 per cent of property transactions in the Valencian Community, beckoning investors from far and wide to capitalise on its resilience.
What sets Alicante apart in this challenging landscape?
The answer lies in a confluence of factors. The province boasts a robust and unwavering demand, complemented by the allure of affordable real estate prices.
Investors revel in the promise of high profitability, with some Alicante towns, such as Elda or Alcoy, yielding returns that soar above 9 per cent.
This unique blend positions the province as a sanctuary for investors navigating the tumult of rising interest rates, escalating mortgage prices, and the meagre returns from languishing in bank deposits.
Julián de la Peña, the president of INMOADAL, effuses enthusiasm as he reflects on the trajectory of this year.
He underscores a notable surge in demand and successful deal closures.
The investor landscape is diversifying, welcoming seasoned professionals alongside newcomers eager to embark on their investment journey, often commencing with their primary residences.
De la Peña astutely points out, “When seeking profitability in real estate, one must factor in the associated expenses to gauge the return on investment.”
“Consider this: investing €300,000 in a property might yield a maximum monthly rent of €1,500.”
“However, opt for a more modest €80,000 property, and you can still command a rental income of €700, resulting in a significantly higher and attractive profitability.”
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Originally from Derbyshire, Anna has lived in the middle of nowhere on the Costa Blanca for 19 years. She is passionate about her animal family including four dogs and four horses, musicals and cooking.
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