Costa News Spain Breaking News | English News in Spain.
Property portal reports that the property prices in Alicante City have risen by 18.2% in the last 12 months, but the inventory of houses and flats available for sale has fallen by 15%. Idealist.
As interest rates have fallen, demand has increased. However, the housing supply cannot keep up with this increase. This is leading to prices reaching record levels.
Many middle- and low-income families are unable to afford the price increases of some city districts, such as Carolinas, Altozano and Babel.
READ MORE
Idealist said the average cost per m2 in Alicante last month was €2,275- climbing to above €3,100 in areas such as Cabo de las Huertas and Playa de San Juan- both coastal areas that are popular among foreign buyers.
Parts of the city centre reached €3,000 per m2.
The portal warns that the sales boom in the second half of 2024 has resulted in ‘the largest drop in supply ever seen in our country, with markets that are at minimum stock levels’.
Idealist spokesperson, Francisco Iñareta, said: “With low interest rates, demand will not fall over the coming months, which will then push up prices further.”
He added that despite the political efforts that institutions and parties announced to accelerate the promotion for new homes, reality on the market showed that tensions in prices would remain at least for the following few years as long as there is no way to supply the market with enough housing in areas where demand is higher.
