Alicante Real Estate

Summary: Alicante real estate has enjoyed booming times as the ever improving and positive status enjoyed by the town is directly reflected in the growing prices of property in and around the town. If you're interested in Alicante real estate this article offers an overview of what's available and what investment potential property in the area can offer.

Alicante is the second largest town in the Costa Blanca region of Spain’s Valencia province; over the past ten years it is a town that has magically transformed itself from a slightly tacky and seedy resort into a beautiful and cosmopolitan and important port town in its own right.

Alicante real estate has enjoyed booming times as the ever improving and positive status enjoyed by the town is directly reflected in the growing prices of property in and around the town.  If you’re interested in Alicante real estate this article offers an overview of what’s available and what investment potential property in the area can offer.

In 2004 property prices across the Valencia region rose by 19.99% according to the Spanish Ministry for Housing; that was a significant increase on 2003 figures and so far in 2005 this trend has continued with the conservative outlook predicting a rise in property values in Alicante itself in 2005 of 15%.  This bodes well for anyone buying Alicante real estate for investment purposes.

The main airport for the entire Costa Blanca region of Spain is Alicante’s El Altet airport, this is one of the most important and busiest international airports in Spain and its close proximity to Alicante means the town is literally massively accessible internationally. 

This has had a direct bearing on the mix of people living in and around the town and also on the types of property being built in Alicante.  Many people can take full advantage of everything beautiful Alicante and the stunning Costa Blanca resorts offer for weekends and short breaks and then hop on a plane and be back home or at work in a few hours.  As a result the amount of holiday homes owned and being built in and around the town is high.

If you’re interested in owning holiday property in this area you’ll be please to know that short term rental demand in the region is massive.  It’s therefore possible to purchase real estate in Alicante, rent it out when you don’t want it and then use it as a fantastic base for a great holiday whenever a break in Spain takes your fancy.  The rental yields vary throughout the year depending on the season.  Alternatively for a more balanced yield you could consider letting your property out in the medium term to those working in Alicante...this has the disadvantage that you cannot then access the property for a holiday - but if you simply want buy to let then this option is certainly worth considering as employment in Alicante is high and there is a strong demand for quality rental accommodation among professionals working in the town.

South of Alicante there are many new building projects that offer immediate investment potential to the buyer willing to buy off plan and wait for his ideal home to be built.  It’s not uncommon for properties bought in this way to increase in value by as much as 25% during the one to two year build period which enables the investor to make money immediately on completion of his home.  Some investors simply buy into developments like this and sell up without ever having moved into the property thus realising the maximum immediate gain from selling a brand new property on a newly completed development.

Some of these new developments ask for very low deposits of around 30% with the balance due upon completion.  Occasionally buyers with only the 30% buy in this way and sell up before having to pay the final amount and effectively gear their investment lump sum up!  This is a slightly risky way to invest as you run the risk of not being able to sell up before having to make the final payment, and if you can’t make the final payment you may lose your initial deposit.  Another way some people choose to make money from these types of development is to buy through a company offering guaranteed rental yields on the property.  You buy into the development early on and basically fund the build; in return the company lets out your property to holiday companies once completed and gives you a fixed rental sum in return. 

Such an opportunity in Algorfa, Alicante exists currently where you can buy a town house for EUR 160,000 for 30% down with a completion date in 2006 which will offer you a guaranteed 6% rental yield upon completion.  In terms of what you can expect to pay for real estate in Alicante itself, a basic resale one bed apartment in the town will start from around EUR 68,000 and a quality three bed villa close by will go up to around EUR 400,000.  Average house sale prices in Alicante in 2004 were in the EUR 230,000 to EUR 330,000 price bracket and the average rental return on property let out in and around Alicante in 2004 was between EUR 18,000 and EUR 20,000.

SHARE: del.icio.us   Digg   Facebook   Google   Mixx   NewsVine   StumbleUpon   Technorati   YahooMyWeb