Status for the property market on Costa Blanca South
“So, do you sell anything ? ” , “Is the market starting to move again? ” and ” The property market is quite dead in Spain ” .
This is the general preconception that currently exists around the housing market in Spain. It is not totally wrong when you look at whole Spain . But in terms of selected areas , the story is quite different.
Costa Blanca South ( south of Alicante) ,where Torrevieja and Orihuela Costa are located, is a growth area where the housing market since 2010 has evolved differently from the rest of the Spanish housing market. It is well known in the housing market that especially Costa Blanca South saw a big drop of around 30% in prices in the fall of 2008 due to “financial crisis” and drop of British Pound, around. In 2009, prices continued to fall, but not at the same rate as previously seen .
In 2010, one of the financially strongest construction companies on the Costa Blanca ” Trivee ” took advantage of the opportunity to launch new and modern properties with a good quality which was not usual in this area. This was the beginning of a new era in the housing market on the Costa Blanca. Faster construction times started and the choice of better materials, better construction, attractive prices and different architecture set Trivee as a standard model of construction to follow in Costa Blanca. This was a big news after 2 years without any new construction in the area.
Quickly Trivee was followed by several construction companies with the result of a large variety of new good quality residential projects in the area. It should be mentioned that the EU requirements for construction at the same time were features like better insulation, ventilation , solar panels or other environmentally friendly source of heating .
So what is the situation today ? Housing prices do not fall in Spain – and especially on the Costa Blanca South .On the Costa Blanca south we have seen prices increasing on the last 12-18 months in new homes and second hand as well. The average increase in price in new construction has been of approximately 10%. However, there are some differences between regions and locations.
The Construction Company “Contrimar”, with its successfully promotion called “Oasis Beach” is another example of how Costa Blanca South is growing in the real estate business. In 2.5 years , they have sold more than 400 Oasis Beach properties in 6 phases, in La Zenia area. Today they are also building in Campoamor and Punta Prima area. Every time they start with a new promotion, they have a waiting list of buyers!
Many customers come to us and expect to see homes that have been empty since 2008 , and then offer 50% below the sale price but this is something that is not happening in Costa Blanca South.
Costa Blanca is the easiest area of Spain for properties sales. In the Costa Blanca the numbers of sales to foreigners is almost the same of Costa del Sol, Costa Brava and Mallorca put together. Sales of new houses to foreigners increased 30% in 2013.
Costa Blanca South offers an infrastructure that is prepared for the future market for much more people and homes, including airports, hospitals, sports and shopping facilities.
There are high expectations for a positive growth in the general housing market on the Costa Blanca in the future.
