Costa Blanca is a tourist name for the Mediterranean coast. It stretches from the municipality of Dayna in the north to Pilar de la Horadada in the south. It consists of 244 km of beaches, coves and rocky outcrops. North of Costa Blanca is Costa de Valencia and to the south is Costa Calida (Murcia region).
Buying a house in Spain is one of the biggest investments you can make. The idea of buying real estate in a foreign country may cause doubts and seem like a difficult task but currently, there are more opportunities in the sector due to slight decreases in the country’s property prices.
In the Costa Blanca region, buyers have much to see and do. The variety of real estate is huge. Costa Blanca offers a diversity of styles for people with different tastes and desires. There are villas on the coast, apartments with sea views, Spanish houses for permanent residence, second homes or even rentals as an investment.
CONTENT:
- How much does real estate in Alicante cost?
- Real estate market analysis: Costa Blanca
- Changes in housing prices on the Spanish coast
- The real estate market in Costa Blanca after the coronavirus
- Forecasts for the real estate sector on the coast
- Exclusive real estate on Costa Blanca
HOW MUCH DOES REAL ESTATE IN ALICANTE COST?
The average price of a property in Alicante ranges from EUR 1,311 per m2 to EUR 1,371 per m2. It should be noted that prices depend on the area. Based on the most common queries, we have compiled a list of the most popular places in the province of Alicante:
- Torrevieja;
- Alicante;
- Denia;
- Javea;
- Villa Martin;
- Orihuela Costa (Playa Flamenca, Cabo Roig, etc.)
- Althea;
- Calpe;
- Moraira.
Property prices in Torrevieja are in the range of EUR 116,000 while in Moraira, the average asking price is roughly EUR 550,000. On the other hand, prices in Java and Althea are usually higher.
Average prices in Orihuela Costa range from USD 150,000 to USD 160,000 (Villamartin, La Zenia, Cabo Roig and Playa Flamenca).
It should be noted that foreign citizens are required to obtain an NIE (identification number for foreigners) before buying real estate in Spain. This document is necessary to conduct any legal business in Spain and it is a valid and unique number for life. An NIE can be obtained either in person or by proxy.
After receiving an NIE, collecting all the legal information about the property, and if all the documents are drawn up correctly, the contract of sale will be signed by a notary.
REAL ESTATE MARKET ANALYSIS: COSTA BLANCA
Alicante
Average sale price in Alicante
In December 2019, the average property price in Alicante increased by 6.3% year-on-year, amounting to EUR 1,513 per m2. At the end of the year, the cost of housing in the city had increased by just over 19% for the last 5 years.
Average rental price in Alicante
In December 2019, the average rental price in Alicante increased by 6.5% year-on-year and at the end of the period, the average reached EUR 7,6 per m2.
Volume of sales in Alicante
The number of transactions in the city of Alicante decreased by 12.8% in the first 3 quarters of 2019 (4,645 sales) compared to the same period in 2018 (5,325 sales). Compared to the first 3 quarters of 2014 (2,651 sales), the number of sales increased by more than 75%. However, it is still almost 25% lower than the same period in 2007 (6,181 sales).
New houses for sale in Alicante
New buildings in the city of Alicante accounted for 8.3% of total sales in the first 3 quarters of 2019, which is lower than in the same period in 2018 (11.2%). This percentage is also lower than the first 3 quarters of 2007 when it accounted for almost 35% of total sales.
Denia
Average real estate price in Denia
In December 2019, the average price of housing in Denia experienced an annual increase of 2.5%. At the end of the month, the average reached EUR 1,974 per m2. Since December 2014, housing prices in Denia have increased by more than 20%.
Average rental price in Denia
In December 2019, the average rental price in Denis decreased slightly year-on-year by 0.4%; at the end of the year, the average was EUR 7,4 per m2.
Volume of sales in Denia
The number of transactions in Denia decreased by 8.9% in the first 3 quarters of 2019 (1,040 sales) compared to the same period in 2018 (5,325 sales). Compared to the first 3 quarters of 2014 (2,651 sales), the number of transactions increased by almost 16.5% but is still almost 65% lower than the same period in 2007 (6,181 sales).
Real estate for sale in new development projects in Denia
New buildings in Denia accounted for 5.8% of total sales in the first 3 quarters of 2019, which is higher than in the same period in 2018 (2%). This percentage is, however, significantly lower than the first 3 quarters of 2007 when new buildings accounted for 49% of total sales.
Pusol
Average real estate price in Pusol
In December 2019, the average house price in Pusol (including Los Monasterios) increased by 2.9% year-on-year. At the end of the year, it reached EUR 1,277 per m2. However, since December 2014, prices in Pusol have fallen by just over 9%.
Average rental price in Pusol
In December 2019, the average rental price in Pusol increased by 12.9% year-on-year and at the end of the month, the average reached EUR 6,5 per m2.
Volume of sales in Pusol
The number of transactions in Pusol decreased by 19.2% in the first 3 quarters of 2019 (185 sales) compared to the same period in 2018 (229 sales). Compared to the first 3 quarters of 2014 (91 sales), the number of transactions has more than doubled but is still 51% below the historical maximum reached in the third quarter of 2007 (377 sales).
changes in HOUSING PRICES ON THE SPANISH COAST
More than 10 years ago in 2007, the real estate market plunged into a serious crisis. During these 3 years, real estate prices on the coast were prohibitively high. The situation along the Spanish coast best demonstrated the collapse of the housing industry with real estate prices falling to a historic low.
At that time, this did not bode well for the future of the coastal real estate market. However, a few years later, houses by the sea became the only ones in certain areas with rising prices while the downward trend continued in the rest of the country. This data is not entirely relevant today but we must consider the unexpected event that broke all previous trends and shocked not only the real estate market but the whole world – Covid-19.
the REAL ESTATE MARKET ON COSTA BLANCA AFTER THE CORONAVIRUS
The medical and social collapse caused by Covid-19 undoubtedly affected the real estate sector and housing prices in Spain. The Tinsa study on coastal housing in 2020 reflects this. It states: «After 4 years of steady growth in real estate activity on the Spanish coast, COVID-19 led to a sudden halt and a high level of uncertainty about what will happen to the local real estate market».
There has been a general freeze in prices. On Costa Blanca between Calpe and Villajoyosa, prices remained at a level typical for the year preceding the study (2019). Even in Calpe, along with other municipalities such as Benidorm, there has been an increase in prices. Covid-19 has not affected this region as much as one might expect and the estimated price drop is less than 5%.
The highest prices for multi-apartment housing are seen in Benidorm, Calpe and Villajoyosa. It is from EUR 2,000 to EUR 4,000 per m2.
The data tells us that at least in Costa Blanca, the pandemic has not affected housing prices as much as it may have elsewhere. We are looking to the future. What are some price forecasts?
FORECASTS FOR THE coastal REAL ESTATE SECTOR
First of all, it should be noted that we live in a period of uncertainty and instability – thus, forecasts should be considered with great caution. The newspaper ‘El País’ claims that 2021 was a time when housing prices fell again. Despite this, experts predicted that the decline will not be as pronounced as during the crisis and some government measures (rental assistance, ERTE or mortgage moratoriums) mitigated the impact of the coronavirus. The rental sector will suffer the most but the secondary real estate sector on the coast may even get a little more expensive. This is because it is valued not only as a vacation destination but also for remote work throughout the year.
So, we are faced with a slight decline in prices in Costa Blanca. If you've been thinking about buying a property, now is the right time! You can buy an apartment in Calpe and enjoy all the advantages of this municipality like a good climate, relaxation, wonderful places, numerous entertainment activities and the best cuisine in the country. Those who do not take risks, do not win.
EXCLUSIVE REAL ESTATE iN COSTA BLANCA
Morning Breeze is the most expensive and spectacular real estate in Costa Blanca. It is in Las Colinas Golf and Country Club (Alicante) where the cost of a square meter ranges from EUR 4,300 to EUR 5,000. The luxury villa is the work of architect and interior designer, Monica Armani, who clearly had an inspired vision from the very beginning.
Based on the desire to respect the original geography of its location, the design of the homes has minimal impact and incorporates sustainability.
«Sustainable development is an important component of our work. This is an important guideline in design, in the use of technology and the choice of materials. It is all with an eye for the long term», the expert adds.
The villa, sold by Viva Sotheby's International Realty, is equipped with an air duct system with heat recovery and a triple function of indoor air renewal, air conditioning and an energy-saving SATE system (outdoor thermal insulation system), as well as cross-ventilation.
The interior of the house, which has 3 bedrooms, 5 bathrooms, a kitchen, a living room, a gym, a spa center with a Jacuzzi, and a sauna, highlights the furniture especially chosen by the designer. For instance, the exclusive coffee table in the living room, a Tao table made of lightweight concrete in the kitchen, or handmade furniture pieces in the bedrooms.
Outside is a 55 m2 infinity pool with tempered, laminated glass that is 50 mm thick and a beach area on the main floor. There is an elaborate garden that has local vegetation and is close to its original form.
The quality of design and materials used brought recognition to this home at the European Property Awards 2020-2021 ceremony in the categories «Residential real estate» and «Architecture of a residence».
The design, construction, location and services of this impressive villa led to these awards by a jury of 80 industry professionals. They ranged from architects, interior designers, and others from across the world who independently analyzed diverse aspects, such as quality, originality, sustainability and innovation.