The sale of houses to foreigners: Break records in Alicante

British and Belgians lead the market, but Dutch and Germans are the ones who have increased their purchases on the Costa Blanca the most.

 
International clients had never bought so many houses in the province of Alicante. The demand retained during the pandemic and the social changes promoted by the months of confinement have caused a real avalanche of operations in the  last year, which has triggered the figures of a business in which the Costa Blanca traditionally occupied a prominent place.
 
Only in the first nine months of 2022 the sale of real estate by foreign citizens moved 4,238 million euros in the province as a whole, according to data provided by the Notarial College of Valencia. An amount that already comfortably exceeds that registered throughout the previous year, when this business represented a contribution to the Alicante economy of 3,588 million, but which is also up to 80% higher than that recorded in the same period of 2019, before the appearance of the coronavirus.
 
"It has been an exceptional year", corroborates the vice-dean of the notaries of the Community, the Alicante Delfín Martínez, who highlights the important economic injection that  this business supposes for the Costa Blanca and advocates to "take care of it" so that it is sustainable over time. " It is not only the amount they invest in the purchase, it is all the expense that this acquisition then entails: the reforms, the furniture ... It is a resource that we have and that in times of crisis has already shown that it can be very valuable, "insists Martínez.
 
The spectacular increase in 2022 is the result of both the increase in thenumber of operations and the higher average prices that have been paid. In this way, according to the figures compiled by the notaries – through which all these operations necessarily pass – between January and September the citizens of other countries bought 23,920 homes in the province, a figure that exceeds the operations carried out by the Spaniards, who totaled 21,930.
This figure represents an increase of 69% over those counted in the  same period last year, when many of the restrictions that prevented movement between countries still weighed, but also 46% more than those registered in 2019, before the outbreak of the pandemic.
 
Likewise, the average amount of each transaction has also grown significantly. If in the last year before covid each house that foreigners bought in the province meant a disbursement of 144,157 euros, the average of the first nine months of 2022 already amounted to 177,213 euros,  although if only the third quarter is taken into account, the average price already reaches 182,645 euros.
 
An even more remarkable amount if one takes into account that the vast majority of the market – 86.16% – is covered by second-hand properties, with a more affordable price than those of new construction. However, we must bear in mind that an important part of the increase in transactions has come from the side of single-family homes, such as villas or bungalows, which already account for almost 35% of the international market on the Costa Blanca.
In total, in the first nine months of 2022,the province of Alicante accounted for up to 20.11% of all home sales that foreigners made in Spain. "We continue to have an undeniable attraction for these customers," says the general secretary of the Provincial Association of Promoters (Provia), Jesualdo Ros, who also highlights the importance in these results of the important international sales network that Alicante companies have developed over the last decades, which gives them an important competitive advantage.

By country

As for the evolution by nationality, the British remain the undisputed leaders among international home buyers in Alicante, despite Brexit  and all the vicissitudes that the country is going through. Until September, they had 3,599 acquisitions, 71% more than  last year and 14% more than before the pandemic.
 
In second place are also repeated by the  Belgians, one of the most established markets of provincial real estate, with 2,204 operations, a year-on-year growth of 42% and 29% on pre-covid figures.
However, the two nationalities that have had a more outstanding evolution in the last year have been theDutch and the  Germans, which have become, respectively, the third and fourth market in importance. The former added 2,099 transactions in nine months, 164% more than was usual before the pandemic; while the latter reached 2,078, also 128% more.
 
On the other hand, the Swedes added 1,683 sales (+24% over the figures of 2019) and the French, 1,399 (+39%). Among the few nationalities that reflect a decrease in their purchases are Russians, since with  the sanctions applied by the war in Ukraine they can only buy those who already had residence within the EU. Even so, they added the not inconsiderable figure of 736 transactions, 24% less.
Likewise, the Norwegian market  remains 15% below pre-covid figures, with 692 transactions, although it recovers ground compared to 2021.
Torrevieja, Orihuela costa, Benidorm, Altea, Santa Pola, Pilar de la horadada among others are locations where more homes have been sold. 
 
Ukrainians triple their purchases on the Costa Blanca
The exodus of displaced Ukrainians caused by the Russian invasion has triggered home purchases by these citizens in the province of Alicante. According to data from the Notarial College of Valencia, until September 709 transactions were registered, almost triple that in the same period of 2021, when they totaled 261, and double that in 2019, when there were 326. Purchases by Lithuanians have also soared, totaling 443 operations, four times more than in all of 2019 and, to a lesser extent, Estonians (79 operations) and Latvians, with 88 transactions.