By Cole Sinanian •
Published: 10 Dec 2023 • 11:04
AMID widespread instability in real estate markets throughout Spain, Alicante’s housing market remains relatively stable and profitable for investors. More specifically, the towns of Elda and Alcoy have the greatest investor benefits, with average returns of more than 8 per cent reports La Información.
Due to its high profitability, the Alicante province accounts for half of all real estate transactions in the entire Community of Valencia. According to Julián de la Peña, president of Alicante real estate non-profit INMOADAL, there are a number of reasons for this, including the area’s consistently high demand and high profitability, which allows investors to weather increasing interest rates and mortgage prices.
“This year has been incredible,” he told La Información. Specifically, properties sold for €110,000 or less with the possibility to rent have been especially attractive to investors, indicating a shift towards more affordable properties.
Alicante’s sunny climate and mild winters play a role in its attractiveness to investors, as well as its low housing prices compared to other regions of Spain. Because of this, the province attracts many foreign investors, particularly from Latin America, Ukraine, and the United States. According to La Información, Alicante has seen a 30% increase in foreign buyers over the past year.
“We don’t usually have investors from the province,” de la Peña said. “Investment professionals we have are Argentinians, Colombians, Mexicans or from the United States, to whom we sell the homes often by videoconference. The majority don’t care where the property is or where it is oriented, as long as profitability is guaranteed.”
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