Renting and buying real estate in Campo de Gibraltar is becoming more and more expensive, even despite the economic problems caused by the pandemic and the current international situation. There is a steady increase in demand, sales and, as a result, prices in the local market. The highest price increases were recorded in the municipalities of Algeciras, Los Barrios, La Linea de la Concepcion and Tarifa. At the same time, both the secondary market and new buildings are growing.
According to Lucas Carrasco, a member of the board of directors of the Association of Real Estate Agents of Cadiz (GICA): «For investors today, the growth in medium-sized housing in suburban areas will be especially attractive. One of the reasons for the growth is the rise in the price of rent, which forces an increasing number of end buyers to choose the purchase of real estate as a cheaper alternative in the long term».
According to GICA, which includes 15 regional real estate agencies, today in Algeciras the average rate for renting an apartment with two-three bedrooms is about EUR 450-650 per month. In cheaper areas such as El Saladillo, La Pinera and La Bahadiera, similar offers in residential complexes, even without an elevator and repairs, do not fall below EUR 300. The problem is compounded by the lack of sufficient supply with steadily growing demand. According to Carrasco, the situation will lead to several consequences.
First of all, there is a great chance that more and more homeowners prefer to withdraw their offers from the market and put them up for rent, since the profitability of the lease demonstrates more significant potential incomes. Such actions will further reduce the already insufficient number of properties on sale and, naturally, will push the price increase even higher. Speaking specifically about the rental sector, at the moment potential tenants are ready to put up with the increase in rates, since the Campo de Giblartar, at most, is a place for temporary residence. The region is an extremely large area for industrial workers, port workers, hospitals, even law enforcement agencies. However, the patience of renters is not infinite.
The working population is the main source of income for the local real estate sector. According to Juan Jose Luque, a representative of the HipoCasa real estate agency, tourism is still far from being a determining factor for the growth of the market in Campo de Gibraltar. The main categories of demand are either permanent residents or migrant workers, and for both categories real estate in the region is becoming less and less affordable.
So far, negative market trends do not affect the indicators, the region and, especially, Algeciras, maintain the stability of development. But the growth over the past year is, according to Luke, «crazy». It takes a day, two at most, to sell a new object on the market. Everything is for sale, both secondary and new buildings. It is difficult to predict when such an explosive growth will turn into problems for the region, but currently local agencies continue to earn by selling two-bedroom apartments for EUR 160,000.