The recovery of the real estate sector in Alicante
That the real estate sector is "progressing well" is an open secret, but also that buyers are now treading carefully. We analyse the recovery in property sales, focusing on the Alicante market.
Based on the numbers in the INE (National Institute of Statistics) and the Ministry of DevelopmentThe predictions have undoubtedly been borne out and we are witnessing a clear recovery in the real estate sector.
At national level, from the free fall in units sold from 2007 (775,300 units) to 2013 (312,593 units), which meant a loss of 59.68%, we have moved on to sustained growth, year after year, which has meant that we have recovered 19.58%, reaching 464,423 units sold in 2017.
In the same way that the reduction in the number of homes sold had as a logical consequence the brutal fall in prices, from an average transaction value of €187,070 in 2007 to €133,094 in 2013 (a fall of 29%), the recovery of the sector has also dragged prices upwards, which by the end of 2017 had recovered 6% of the lost ground, reaching €144,194.
And what about Alicante?
These data, as generalists that they are, must be studied square by square, zooming in according to our interest, and in this case we are going to see what is the radiography in the province of Alicante.
The parallelism with respect to the national figures is evident, although with some nuances. From 52,320 units sold in 2007, the figure fell to 21,757 units in 2011, a drop of 58.41% in just 4 years, two years less than the national average. The bottom was reached earlier in a more drastic way, but on the other hand the recovery started earlier, reaching 24.65% in 2017, with 34,659 units sold in the province.
However, in terms of prices, the fall from 2007 to 2013 was 32.52%, from an average transaction value of €165,947 to €111,976. The recovery started later, the fall was greater than the national average and the recovery with the current 4.30% is lower than the national average.
In the province of Alicante, the number of housing units sold is growing at a faster rate than the average for the rest of Spain, but prices are growing at a slower pace.
With these data in hand, everything points to the fact that the recovery is evident and, as 2018 has started, everything seems to indicate that the trend will continue to rise. A new cycle has begun and we will have to follow it with caution so as not to fall into past mistakes.
