The Costa Blanca Property Market

Costa Blanca property is becoming an ever more popular choice for expatriates, and prices are increasing rapidly at most of the popular areas in Spain, in some areas at an astronomical rate. It is therefore imperative for those wishing to invest in property on the Costa Blanca to acquire property as soon as possible, in order to capture the maximum potential of this ever-growing market. While at some point the market for Costa Blanca property is going to slow down in terms of price increases due to eventual saturation, there is evidence portraying an increasingly expensive market for property.

According to a report from the "Asociación de Promotores y Constructores de Edificios" (APCE) (Association of Building Promoters and Constructors) from August 2004, tourists from foreign nations own roughly 300,000 holiday homes in Alicante province. This estimated figure is expected to increase by 26.32% over the next 4 years from the date it was commissioned. Sales of houses to holidaymakers or permanent residents from other countries are expected to total approximately 65,700 during the 2004-2008 time period. In fact, housing prices in Spain as a whole have gone up by a mind-blowing 220% over the past 5 years, according to TINSA (report currently available only in Spanish). Last year alone property across Spain increased in value 17.5%, and in certain areas as much as 30%. It has been said that some investors in Spanish property have doubled their investment across a period of just a few years. Spain's National Institute of Statistics reports that the immigrant population in this country will increase as much as 5.5 million by the year 2010. This figure equates to 12% of Spain's population, while in 2001 this percentage was just 5%. Coupled with the Spanish's government's objectives of attracting tourism and external investment, the future for growth in Spain's property market looks bright.

For those that seek holiday homes in order to rent out during ununsed summer periods, there are a range of locations ideal for this purpose, as the demands of the tourist market have diversified in recent years. Now, people may wish to rent property in villages and towns in the mountains to get away from it all, and might prefer a more typical Spanish town slightly inland from the Costa Blanca to a busy tourist resort on the coast. Before, the focus on Costa Blanca property to rent was aimed mainly at those wishing to enjoy the Costa Blanca's beaches, though some holidaymakers may prefer a more peaceful location to stay in, and don't mind travelling around to see the Costa.