Purchasing Property in Torrevieja – Spain at the Beginning of 2023

Property in Spain

The beginning of the year is an ideal time to make decisions and draw up medium and long-term plans. In anticipation of the profitable year, a large part of the investors has already set their goals – and one of those goals is the purchase of real estate by the sea. Speaking about property prices for sale Torrevieja, Benidorm, Marbella can become highly attractive among the investors.

The situation as a result of the pandemic has had an impact on the real estate market, which saw a decrease in the number of transactions in 2020, mainly due to uncertainty and restrictions introduced to curb the increase in the number of infections. In 2022, the sector has reactivated due to the economic recovery and there are good forecasts for 2023.

Moderate price increase

2022 was characterized by the peak of real estate sales. According to leading experts, a new real estate bubble is still too far away, but prices will continue to rise as demand grows.

According to some forecasts, this year there may be an upward trend in prices due to high demand, while the supply of real estate remains unchanged. This situation creates more buyers than new buildings. Second-hand apartments may also increase in price if the imbalance between supply and demand continues to grow.

Price developments in 2022 point to a small incremental increase ranging from 1% to 2% by the end of 2022, for both new and secondary market housing. Some stability is expected next year, although growth of 5% and in some cases even 10% is possible in parts of Spain, mainly in tight areas such as Barcelona, Madrid and the Balearic Islands.

Despite this, experts assure that the situation in the market is quite stable and there is no risk of “sharp” jumps, with a very exaggerated rise in prices, which means that buying and selling decisions can be “more deliberate and less impulsive.”

So the start of the year can be the perfect time to finally reach your goal of buying a new home without being hit by a price increase a few months later.

Low interest rates

Mortgage interest rates remain at historically low levels – experts say it’s “better now than never” if you’re looking to buy a home. Not all countries recover in the same way, so the European Central Bank (ECB) will try to delay the end of stimulus measures and interest rate hikes as long as possible.

Despite this, it is likely that in a few months or a year, interest rates will start to rise as a result of inflation. In any case, according to experts, the increase will be a maximum of half a point, which will not have a significant impact on the real estate market.

Real estate in Torrevieja

Torrevieja is a beautiful coastal region on the Mediterranean coast with a population of about 85,000 and is the fifth largest city in the Valencian community.

Tourist attractiveness is provided by a combination of three main factors:

  • 20 km coastline,
  • Average annual temperature 18º,
  • Lots of sunny days.

Hence the attractiveness of Torrevieja as a city for investing in property for rent or as a holiday home during the summer months.

It is important to understand that the main revival of life in Torrevieja occurs during the summer holiday season. Also a distinctive feature of the city is the high percentage of the foreign population choosing this place to live or live for long periods of the year.

This is especially true for people of retirement age who come here in search of a mild climate and more affordable prices than in their native countries. According to the census of the population of Torrevieja, more than half of the people registered here are foreigners. These include communities from the UK, Russia, Ukraine, Norway, etc. In addition to permanent residents, vacationers double the number of local residents during the summer months, creating a large influx of population during the summer.

Torrevieja is a place where there is not only sun and beaches, but also a huge cultural heritage (churches, modernist architecture, museums, etc.). And heavenly places for a beach holiday, such as Playa de la Mata, Playa los Locos, Playa del Cura or Cala Piteras, will not leave anyone indifferent.

Property prices in Torrevieja

The average cost per square meter in June 2022 was about 1,600 or resale properties and 1,905 for new buildings. At the same time, prices rose by about 0.9% and reflect the general trend of rising property prices in Spain, which are gradually returning to pre-crisis levels.

Statistical data indicate that the largest increase in prices over the past 3 months was registered in the category of houses with an area of more than 120 square meters, valued at less than 100,000 with an increase of 1.63%, and the maximum decrease, -5.96%, was recorded in categories of houses; with an area of ​​more than 120 square meters, worth more than 250,000.

It should also be taken into account that the price per square meter of real estate in Torrevieja is 3.5% lower than in Alicante, the capital of the province.

Property for sale in Spain

Spain-Real.Estate website has a great database for the real estate in Torrevieja and other Spanish cities. Visit the website and start your search!

Leave a Reply

Your email address will not be published. Required fields are marked *