50% of Costa Blanca property sold to overseas buyers with even more expected in 2017
- 50.21% of sales in Alicante region to foreign buyers during Q2 2016 (Ministry of Development)
- Rise in Costa Blanca sales to foreigners from resale properties (Fuster & Associates)
- Legal specialists Fuster & Associates unveil brand new Costa Blanca Property Market Report
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.”
These in-depth market findings can be found in Fuster & Associates’ newly unveiled Costa Blanca Property Market Report. The first in a series of free to obtain market reports, Fuster & Associates are committed to providing a detailed insight into specific regions in Spain, designed to aid prospective buyers. To download your own copy of the report, please visit http://fuster-associates.com/lp/costa-blanca-property-report/?src=newsletter.
To find out more about Fuster & Associates and the services they offer, please visit http://fuster-associates.com/