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Real Estate, Grupo Nexus, Informa

In this strip of coast, the buyer of vacation homes is both national and foreign in similar proportions. The foreign buyer is mainly from the United Kingdom and Northern Europe and the national buyer from Madrid and Northern Spain. Both domestic and foreign demand have remained unaffected, reaching previous levels. The forecasts are positive, only conditioned by the strictest mobility limitations.

The first months of the current year partially attenuate the sharp contraction recorded in 2020. Five years of increasing progress are interrupted in a market characterized by significant international demand. On the one hand, prices register decreases, as well as certain localities maintain values. Orihuela stands out with price increases. Work prices remain stable for the moment, despite the forced withdrawal of buyers. Rental prices have fallen by at least 5% in the last 12 months.

The coastal strip presents a low level of new construction stock and extensive secondary supply on the municipalities of the area, stagnant in the last 12 months. A slight decrease in vacation rentals has been identified in the last 12 months, with a derivation of the offer to the first residence market. According to Tinsa, a severe deterioration in the global volume of transactions and a notable increase in sales terms is observed in the few new developments, located in Torrevieja and Orihuela Costa. In the rest of the markets, there are postponements or cancellations in the beginning of new vacation construction.

The new developments, run by local operators, focus on semi-detached single-family typology of medium quality and about 100 m². Traditionally, apartments and semi-detached houses are developed. The demand is mostly international, with Swedish, Norwegian, Finnish, Icelandic or Belgian origin and to a much lesser extent, British, Russian or German. It has experienced a strong retraction in the last 12 months and the recovery is expected subject to the reopening of borders and the restoration of mobility. The recession and instability in employment restrict domestic, minority demand in the short and medium term. No significant changes in buyer preferences have been detected.

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