Green Shoots of RE Activity Rooted Along the Alicante Coast

4/07/2014 – Inmodiario

Real estate activity on the coast has not only increased, but also became sustainable. Some banks started to notice that the prolonging price adjustment caused two things to happen: the housing stock has shrunk significantly and the construction of new housing developments has been announced.

Although no one dares to speak of an overall recovery in home construction, developer activity shoots in some areas, such as Torrevieja, Santa Pola, Guardamar or Pilar de la Horadada. These cities are often visited by foreign investors – usually Britons, Russians and Norwegians – looking for holiday or permanent dwellings.

Sabadell and its servicer Solvia hold the biggest market share in the Valencian Community with one fourth of the entire sales volume and a 40% share in the total number of sold homes.

As per the data gathered by Solvia, in the first quarter of 2014 the entity traded 3.271 houses in Spain for the total of €657.26 million, out of which 1.415 units (€167 million) were sold in the Valencian Community and the Balearic Islands. The volume is by 25% greater than a year earlier and the marketed number is by 43% better. 60% of the sales corresponed to resales, while 40% to new homes.

By provinces, Solvia sold 170 units in Alicante for joint €19 million, 24 houses in Murcia (€3.33 million), 47 in Valencia (€4.93 million), 22 in Castellón (€2.69 million) and 6 in the Balearic Islands (€1.36 million).

In geral terms, the sales develop similarly to the year 2013 but with smaller average discount, indicating demand consolidation. Briefly, the same amounts are being sold but at higher prices and giving better returns.

The most eye-catching indicator of the improvement is the price. In some housing developments like in Peñíscola (Castellón), they jumped by 10%.

 

Original article: Inmodiario (by Juan C. Martínez)

Translation: AURA REE

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