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The building market around the Coast

It happens to a lot of Brits after, having spent a large budget this summer to stay on the beachfront; should we buy second residence near the beach or should we pay a fortune every year?

My advice

Whether you may use this new home for a private use or to put it for rent, at all times select a consolidated area with an upward trend, that factor alone will always provides a plus for your investment to be revalued and have a greater attractiveness for renting.

 

Focusing on the coast of the Valencian Community Tinsa one of the largest property values in Spain published their “Report on Housing in the Costa 2018”. I have extracted the part on the Valencian region which includes the evolution of 29 coastal municipalities.

 

Although there is a lot of numbers but I think it may help you to know more about the market, which concentrates very diverse realities.

 

The Alicante coast is leading the recovery and stands out with a wide range of new construction. Also the Valencian coast, especially the southern zone, shows signs of recovery thanks to the increase in demand in areas such as Oliva Nueva. The coast of Castellón, although it is gradually digesting the oversupply generated in the boom era thanks to a reactivation of purchases, is still finalizing the adjustment in terms of prices.

 

In what areas has the price of holiday homes risen most significantly in 2018?

The prices have gone up in Orihuela Costa (+ 16.7%) followed by Calpe (+ 16.5%) and the Valencian Alboraya (+ 14.5%) are the coastal municipalities that, according to the Tinsa appraisals, have increased the average prices in the Valencian Community in the first quarter of 2018 compared to a year earlier, trailed by Jávea and Altea (both with a rise of more than 11.3%).

If you are looking for a good location, you can find apartments of about 85 m2 in a good area on the beachfront in Alboraya at around € 2,200 / m2. That's also the starting price for a well-located single-family home in Orihuela Costa (between 2,200 and 2,500 € / m2).

 

The Alicante coast concentrates a great volume of new build

 

Thanks to the push of the international buyer, the coast of Alicante is leading the recovery in the Valencian community.

 

The total sales registered in the 15 Alicante municipalities analysed in the report reached 28,761 homes in 2017 compared to 25,504 in the previous year. And the number of new construction applying for building licence, a leading indicator of construction activity, increased by 23% last year, to 4,984 homes.

 

Prices have increased in the last year in 12 of the 15 municipalities analysed in the province, although they are still far from the levels reached in 2007.

 

Except for Orihuela Costa, El Campello, Calpe and Jávea, the decrease from maximums exceeds 35% of average in the finished house (new and used).

 

Prices in the Valencia Coast

Value €/m2

2017

Value €/m2

2018

% variation

2017-2018

Variation since maximum of 2008

Alicante province (Coast and interior land)

1.098

1.146

4,4%

-42,0%

Alfàs del Pi (l')

1.484

1.535

3,4%

-37,4%

Alicante, Capital

1.162

1.215

4,6%

-38,0%

Altea

1.535

1.709

11,3%

-28,3%

Benidorm

1.581

1.709

8,1%

-39,5%

Calpe/Calp

1.428

1.664

16,5%

-31,5%

Campello (el)

1.422

1.482

4,2%

-27,8%

Dénia

1.409

1.387

-1,6%

-44,0%

Elche/Elx

876

851

-2,9%

-50,8%

Guardamar del Segura

1.272

1.240

-2,5%

-42,6%

Jávea/Xàbia

1.521

1.693

11,3%

-31,7%

Pilar de la Horadada

1.298

1.249

-3,8%

-43,5%

Santa Pola

1.270

1.310

3,1%

-39,5%

Torrevieja

1.238

1.227

-0,9%

-45,0%

Villajoyosa/Vila Joiosa (la)

1.107

1.152

4,1%

-48,8%

 

If you are looking for a second residence of a new build, Orihuela, where 1,150 licences application for new construction were signed off in 2017 is a good bet with plentiful supply of high quality single-family homes on the beachfront and close to commercial areas and golf courses. Among the most relevant, it is worth mentioning the reactivation of a promotion of 120 homes, paralyzed during the crisis, and the construction of apartments of between 70 and 80 m2 and 100 m2 townhouses.

 

It is an area with a significant presence of a foreign buyer, as also happens in Guardamar del Segura, where it has just completed a promotion of 60 homes in two phases, in the area of Los Estaños.

 

There is also a new construction offer in Torrevieja, where, in addition to a project of 100 holiday homes restarted in 2016, new semi-detached houses of medium quality have been promoted in the area of Los Altos and multi-family dwellings in Rocío del Mar. This is an area with predominance of the national buyer (of Madrid, Castilla-La Mancha and Castilla León), as also occurs in Pilar de la Horadada.

 

I hope that these arrays of numbers have helped you in making a decision one way or the other.




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