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ARCHIVED - Purchasing power: how much do Brit and other overseas buyers pay for property in Alicante province?
International buyers spend on average 50% more for homes in Alicante province than Spanish purchasers
Following the lifting of the Covid pandemic restrictions, the interest of foreign buyers in buying property in Spain is returning with a vengeance, according to various real estate experts. And it would seem many overseas purchasers looking to secure a permanent or second home in the Mediterranean have set their sights on Alicante province.
Inland locations are proving just as popular as coastal towns, but just how much are international buyers paying for a place in the sun?
Overseas purchasers looking to invest in property on the Costa Blanca tend to have much more generous budgets than the local clientele, making them more profitable for the sector.
In fact, the average price paid by foreigners who bought a property in the province during the first half of the year reached 174,741, according to data from the Notary Association of Valencia. This is almost half, 47.7% to be exact, more than what Spaniards invested, both residents in the area and those arriving from other autonomous regions. Estonians paid an average of 234,187 euros but only account for 38 sales between January and June.
With an average budget of just over 200,000 euros, Belgians buyers paid an average of 232,853 euros; the Norwegians paid 212,683 euros; the French forked out 208,343 euros; and the Germans invested on average 202,156 euros per property.
With more modest figures, although equally higher than those invested by national buyers, are the province's two large traditional markets abroad: the British and the Swedes. The former pay on average 176,741 for each property they buy, according to the Notary Association. And interestingly, as the British are involved in the most transactions – 2,372 in the first half of the year – together they represent the largest volume of business for Alicante real estate agents: 415 million between January and June, 15% of the 2.8 billion that this activity moved.
Swedes spend 174,288 euros per home, but account for 50% less transactions than UK purchasers.
European buyers monopolise the most expensive market segments, according to the real estate experts, and account for up to 55% of buyers of new-build homes in Alicante province. Notary data shows that two out of every three villas sold in Alicante (66%) end up in the hands of a buyer from another country.
In contrast to the significant amounts spent by Europeans, the foreigners who spend the least when it comes to buying property in the province are purchasers from the Maghreb (Northwest Africa). Algerians invest an average of 99,051 euros for each flat or house they buy in the province, more than double that spent by Moroccans, who signed deeds for an average 41,262 euros per transaction.
Moroccans tend to be economic immigrants who come to the province to work, whilst many of the Algerian purchasers are looking for a second home outside their home country.
Image: Archive
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