In 2023, amidst a double-digit decrease in property transactions across Spain, the Costa Blanca region emerged as a beacon of resilience in the real estate market. With over 640,400 operations finalized before a notary, the Costa Blanca recorded its fourth-best figure since 2007, demonstrating its robust position in the property landscape.
Cash Dominance in Property Transactions
A notable aspect of the Costa Blanca’s real estate scene is the prevalence of cash purchases. Surprisingly, more than half of the transactions (56.2%) were completed without a mortgage, solidifying the autonomy’s position as a formidable player in Spain’s property market. The Community of Valencia led this trend, with a staggering 70.2% of acquisitions made without the need for mortgage financing, showcasing a preference for straightforward, cash-based transactions.
Resilience Amidst Economic Uncertainty
Despite economic uncertainties and the European Central Bank’s intervention to curb inflation, mortgage loan approvals for property purchases faced challenges, leading to a significant decline in mortgage transactions across Spain. The surge in the Euribor made financing more expensive, contributing to the downturn in the residential real estate market. However, the Costa Blanca’s real estate market showcased resilience, with a decline that was less severe than anticipated.
Property Preferences: Apartments Reign Supreme
In line with national trends, apartments remained the preferred choice for property buyers on the Costa Blanca, accounting for 76.9% of total transactions. This preference for apartments reflects a consistent trend in the region’s real estate market, underlining the allure of coastal living and the convenience offered by apartment living.
Shifts in Property Types: Single-Family Homes
While apartments continued to dominate, there were noticeable shifts in the market regarding single-family homes. Madrid slipped to the sixth position in single-family home transactions, while Andalusia, the Community of Valencia, and Catalonia emerged as leaders in this segment. This trend underscores evolving preferences among buyers and highlights the diversity of property offerings on the Costa Blanca.
Adaptation Post-Pandemic
The real estate market in 2023 signaled the end of the post-pandemic boom, with a gradual decline in villa purchases. However, the Costa Blanca’s property market showcased resilience and adaptability, navigating through changing dynamics and emerging as a stable investment destination.
In conclusion, the 2023 real estate trends in the Costa Blanca reflect a blend of resilience, adaptability, and shifting preferences among property buyers. With cash transactions leading the way and apartments remaining the preferred choice, the Costa Blanca continues to be a compelling destination for real estate investment.
For those looking to explore opportunities in the Costa Blanca property market, Adaleta stands ready to provide expert guidance and assistance every step of the way.
