The Alicante Association of Real Estate Agents points out that national buyers have partly compensated for the fall in property sales to foreign nationals.
The Alicante Association of Real Estate Agents forecasts a stabilisation of the property market in the province in 2021, with a downward trend in the first part of the year and a significant reactivation in the last four months of the year. However, the continuous changes in the health situation are generating a lot of uncertainty and make it difficult to make a reliable forecast of the evolution of the market. The president of COAPI Alicante, Marifé Esteso, explains that the market has had an uneven performance in the province of Alicante in 2020 but, in many places, the national client has partly compensated for the fall in sales to foreign citizens.
"The first part of the year will follow the same trend as 2020, but we are convinced that activity will pick up as soon as the health situation improves, something that could happen in summer or autumn," he says. In this sense, he affirms that there are many Spanish buyers and, above all, foreigners, who are waiting for mobility to resume in order to visit properties and close deals, so the upturn is going to be "very significant. We have very high expectations for when the vaccination process is completed and herd immunity is achieved," he says.
As a result of the pandemic, the type of property in greatest demand will continue to be villas, detached houses and penthouses with terraces, large properties with open spaces such as gardens and terraces. "The pandemic has led many buyers to prioritise size over location. We have clients with high purchasing power who used to look for luxury homes and are now looking for homes with outdoor space in more peripheral areas," he argues. In addition, it seems that teleworking is here to stay, so we are noticing the interest of people who previously only came on holiday to buy a property in Alicante to work from here all year round.
As for the rental market, the API Association of Alicante maintains that after the price correction in 2020, rents will remain stable throughout 2021, with an upward trend when the economy begins to revive and both tourism and educational activity pick up again. "Last year rents fell, especially the higher rents, due to the increase in supply caused by the transfer of property from holiday rentals to traditional rentals, and we do not expect significant changes in 2021," he says.