The demand for new build properties in the province of Alicante has driven prices up, and for the first time since 2008, prices have risen to more than 2,000 euro per square in several coastal towns.
This is evident from the latest report prepared by Sociedad de Tasación (ST) called ‘Study of New Housing in the Valencian Community’. This has analysed the prices for the first half of 2024 and the figures indicate that they continue to rise in the province, partly due to the strong demand that the sector has experienced in recent years.
The average price for a square metre in the region is therefore 2,016 euro, exceeding the 2,000 euro barrier. This limit is exceeded in some coastal municipalities, such as Benidorm, which has the highest price per square metre.
In the tourist capital of the Community, the cost of new housing is close to 2,300 euro per square metre, an increase of almost 5% compared to the first half of 2023 and 2.5% compared to the second half of the previous year.
This is the largest price increase in the province, where the upward trend stands out among coastal municipalities. The ST report shows La Vila and Santa Pola with increases in their prices of 4.5% and 3.7% annually and costs per square metre that exceed 1,700 and 1,600 euro, respectively.
The provincial capital is not far behind either, with the cost of new housing standing at around 1,677 euro, 3.3% more than the same half of the previous year and 1.5% more than the second half of 2023.
The company highlights the “great dynamism” of new construction in the province. The general delegate of Sociedad de Tasación for Valencia Norte, Castellón and Teruel, Paloma Escuriola, explained that the upward trend “is influenced by a sustained demand for new housing, to which is added the increase in construction costs and a shortage of supply in the market.”
The report also includes several indices, such as the Real Estate Confidence Index, which has risen by 4.3 points in the Valencian Community, reaching 55.3, the highest of all the autonomous communities in Spain. This evolution confirms “the recovery of optimism in the real estate sector in the region,” the company says.
The de-escalation of interest rates and the new direction taken by the European Central Bank have acted as a stimulus for many buyers, gradually reactivating demand “both on the side of sales and the granting of new mortgage loans for the acquisition of housing.”
