The new edition of the Map of “Urban Planning Time” in the Mediterranean, published by the Appraisal Society, reflects that the residential land market is once again moving with great efficiency in 2022 in Alicante. The report points out that the quality product gains weight (in terms of demand and supply), and increases the interest in single-family homes in the province of Alicante, aimed at a population with a high purchasing power.

In addition, in municipalities such as Moraira, Xàbia or Denia, high-level self-promotions form a large part of real estate investment. Likewise, the coastal areas continue to attract the interest of developers, with Benidorm, Sant Joan, (and again) Xàbia, Denia and Moraira being the locations where most of the construction activity is concentrated.

Specifically, they point out that cities such as Benidorm, Elche or Torrevieja are at a time of increased activity in the land market at a general level. And it is that, in general, the market is stable in the province and that the average cost of construction in the area is about 700 euros per square meter. There is some exception on the coast, where the price goes up to 950 euros per square meter. In addition, they point out that Denia is especially influenced at an urban level by its General Plan. Similarly, they point to the influence of Pativel on the residential market throughout the Community.

In this aspect, and in general, they point out that the province of Alicante and its residential market have been revived after the end of mobility restrictions, recovering activity levels prior to the outbreak of the pandemic, exceeding the number of transactions registered in 2019 , and causing accelerated sales rates and price increases. And it is that it is a market that depends on the foreign market, so its real estate sector focuses on the habitual residence and second residence.

On the other hand, the prices of new housing would be on the rise due to the rate of sales of new construction and greater domestic and foreign demand. They emphasize that in Torrevieja the details of the Modification of the Partial Plan of Sector 20 “La Hoya” are being finalized to launch one of the largest urban projects in the area, with the forecast of building more than 7,000 homes.

The new Law for the Right to Housing indicates that it will have a limited impact in areas such as Benidorm or Alicante, where the rental of first residence is practically non-existent. Of course, from the report they assure that a normative modification that could have an impact on the promotion of new construction is the autonomous law that obliges to allocate a reserve of 30% of the Developable Land for public housing.

If we talk about alternative uses to residential, the commercial and industrial segments linked to the good data from the tourism sector are reactivated. In turn, with the modification of the Elche General Urban Development Plan (PGOU), which is still in process, the aim is to expand the Elche Business Park area and thereby enhance the supply of the tertiary and industrial sector.

The market in the Valencian Community

At the regional level, the General Delegate of Valencia of the Valuation Society, José Puchades, points out that at the level of the provinces of the Community “Valencia has experienced great dynamism around residential activity. The city and its surroundings are the protagonists of a solid demand, both for multi-family and single-family homes” and the low rental offer shifts the demand towards purchase. On the other hand, in Castellón the demand for quality housing predominates, with larger surfaces, open and sustainable spaces, in accordance with the requirements in terms of energy efficiency. The balance between supply and demand can be seen in the containment of prices in the province of Castellón as a whole, higher in Benicàssim.

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