Costa Blanca Property Soars In Popularity With Overseas Buyers Accounting For The 50 Percent Of Sales In The Region

 

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Data from the Ministry of Development states that 50.21 percent of sales in Spain’s Alicante region are attributed to foreign property buyers in the Q2 of 2016.

The increase in the number of sales in Costa Blanca is mainly attributed to foreigners who are interested in properties that are for resale.

Legal specialists Fuster & Associates released the latest report on the Costa Blanca Property Market.

The sun kissed Costa Blanca has long been a firm favourite with both domestic and foreign buyers looking to purchase that dream second home. However, the most recent statistics to be released by Spain’s Ministry of Development confirm that it is the significant rise in sales to overseas buyers that is re-establishing the region’s property market.

As Figure 1 above reveals, the percentage of foreign buyers in the province of Alicante has increased dramatically from 25% to over 50% since the beginning of 2011, with no sign of slowing down. In Q2 2016, over 50.21% of sales in the region of Alicante were to foreign buyers. And it is one type of property in particular that seems to be welcoming the most attention.

Spanish legal specialists Fuster & Associates, who provide both legal and tax services to international clients on the Mediterranean coast, believe that the rise in sales to foreigners in this region has been made almost entirely on resale property. After the Spanish property crash of 2007, house prices dropped dramatically and subsequently for the next five or six years there were just resale properties on the market.

David Fuster, Founder of Fuster & Associates, from his office on the Costa Blanca explains further,

“It wasn’t until approximately 2013, when the Spanish banks had resold the majority of properties built pre-crisis, that developers could start competing in the market once more. Sales of off-plan properties are now increasing, but at a much slower in comparison to resales.

“Legally, the key difference between the two is that with a resale you do not pay anything until you complete on the property, there is no risk. In contrast, off-plan properties require a higher level of precaution as buyers make payments in stages while the property is being built and must ensure those payments are guaranteed 100%.

“The bargains available to buyers remain in the resale sector where prices are considerably lower. However, with market growth set on a positive trajectory once more, we would expect this disparity to equalise in the next couple of years.”

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Costa Blanca, Spain – Photo by Phillip Capper, Wikimedia Commons

 

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