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The real estate market in Spain
The real estate market in Spain has shown a trend of moderation in 2024, although it remains dynamic in various regions. Housing prices have started to stabilize after a period of significant increases, largely driven by a lack of supply and sustained demand. However, prices have not fallen across the board, and some local markets are still experiencing increases, especially in popular urban and coastal areas.
Focusing on the province of Alicante, steady growth has been observed in recent years, driven by high demand from both local and international buyers. Alicante is one of the most attractive provinces on the Costa Blanca, renowned for its climate, beaches, and quality of life, making it a popular destination for those seeking second homes or even for those looking to relocate permanently.
In 2024, the supply of new housing in Alicante remains quite active, although the scarcity of available and attractive land for construction is becoming evident, and high construction costs have influenced prices. Finding a newly built home in the most sought-after areas may become the new “treasure hunt” without the right allies by your side.
Developments are mainly concentrated in areas near the coast, in cities such as Alicante, Benidorm, San Juan de Alicante, and Elche, but also in areas farther inland, where prices may be more affordable, and the offer of “quality of life” is found in rural and mountain areas with different features but the same conveniences.
The profile of new home buyers includes both those looking for vacation homes and those interested in permanent residences, particularly with 2 to 4 bedrooms. Additionally, real estate developments in Alicante have diversified, with growing interest in modern apartments, luxury homes, and chalets with sea views or in exclusive residential areas.
Among the challenges buyers may face are higher interest rates, which have limited access to mortgages, especially among younger buyers, slowing the pace of sales in this segment of the population.
Despite this, Alicante remains one of the most coveted areas for purchasing new homes, thanks to its appeal for both national and international buyers.
In summary, while it is difficult to make a 100% realistic forecast of how the real estate market in Spain will evolve, it remains attractive, and future growth prospects will depend on economic factors such as interest rates and the evolution of supply and demand in different areas.
