The Association of Real Estate Agents of Alicante notes that interest in rental real estate investment has increased. Global economic uncertainty, which led to a 15% drop in global stock markets this year, contributed to this. A significant drop in stock market indices in recent weeks has been reflected in the real estate agencies in Alicante, which have recorded an increased interest in buying housing from investors. The Spanish market, and especially Alicante, has a great potential for generating income that is difficult to find in other investment products.
According to the forecasts of the Bank of Spain, the expected yield on the housing market is 10%. Although rates are expected to rise in the medium term, mortgage interest rates are still low, which helps finance transactions at an affordable price. A recent study of the real estate portal shows that Alicante is the Spanish capital, where the rental price has increased the most over the past year. This has a positive effect on profitability for property owners.
Marife Esteso, president of the Association of Real Estate Agents of Alicante, explains that rented real estate is at an unprecedented level in the Valencian Community, accounting for 25% of the total. "The instability of financial products that we are experiencing has made it more attractive to buy real estate for rent, in addition to high demand and rising rents over the past year," she says.
The high real estate sales figures are also supported by the growth of sales to foreign nationals, who have become more active on the Alicante coast since the beginning of the year. Britons, Belgians, Swedes, French, and Germans are the main buyers of housing in Alicante.