The price of the floors rises on the Costa Blanca after seven years of crashes

  • Costa Blanca BoatPrice has picked up 2% in Benidorm in the first quarter, although still slightly downward in Alicante, Orihuela and Torrevieja, while Crevillent, Elda and Novelda are cheaper places

The price of housing in the Costa Blanca not only has bottomed, as already anticipated last April the President of the Banco Sabadell, Josep Oliu, when it presented the results of the first quarter of the entity, but it began again to rise. At least, in the city of Benidorm, the tourist capital of the region of Valencia. The table official price of square meter built, both new flats and those who have more than two years, was reported yesterday by the Ministry of public works and collects a rise 2% in Benidorm and mild fall, what was common in the inter annual since 2008 comparative quarter-to-quarter basis, in the case of Alicante Torrevieja and Orihuela.

Between 35% and 45%, it has fallen half price of new flats and second-hand of the province, in areas of interior or coastal, first secure residence, since the beginning of the crisis, after pop the housing bubble, in early 2008, after the U.S. sub-prime scandal. in the summer of 2007. At the rate of 7% per year on average in almost all of the municipalities of the Property Costa Blanca, although not so much in the central areas of the large municipalities or first line littoral.

Now, after more than 80 months, rates begin to recover after hitting bottom clearly. In Benidorm, at the end of March was built square meter 1.823 euros, compared with 1,787 March 2013. In Alicante, the decline in the value of housing is clearly slows, adding one 5.1% less in the last twelve months, half that crash that registers Torrevieja, with 11%, where square meter goes from 1,170 euros metro in 2013 to 1.045 in Q1 2014. Orihuela, including its coastal area, also adds another YOY decline of 9.7%. Xàbia is still, after Benidorm, Alicante most expensive city to buy housing, with 1.369,4 euros subway, opposite 1,517 of twelve months ago.You record one of the biggest falls in value (- 10.8%).

In the interior it falls more

The area of the province records even higher percentage fall, even though the value is much lower. Thus, Alcoy records a 19 percent slump in the value of housing new and used a year official pricing, price remaining 662 euro metro. In Crevillent price is 605 euros, compared to 707 from a year ago. In Elche was worth 887euros the underground a year ago and now 744 (15% less in only twelve months). San Vicente costs 952 euros compared with 1.060 of the start of the year 2013.

The most economic to invest in housing from Alicante municipalities remain Crevillent, Elda and Novelda, with 564, 605 and 619 euros square meter, respectively. They are part of the Group of towns with more than 25,000 cheaper inhabitants in Spain, Jumilla, Ontinyent and Tomelloso.Neighboring Jumilla, with 527 euros meter, is the most attractive area to invest right now in brick. They also record falls even more moderate than the average Calpe, Denia, Santa Pola and Villajoyosa. For communities, the Valencia falls 2.3%, below the average, which is located at 3.5%.

Will property in Spain rise this 2014 or will they remain in free fall?

costa-blanca2014 can be seen as a transition year for housing in Spain. Prices or the sale will give many joys. In addition, funding will remain dependent on the improvement of employment.  Experts offer the keys to take advantage of the new year in the real estate field.
It’s almost to say goodbye to another year minimum. The main indicators that measure the health of the residential market has broken historic barriers, and only in the last quarter of 2013, we are now seeing some movement. Price forecasts point to a stabilisation of products while shopping will follow depending on the cash payment, the mortgage market remains closed the band at a general level. We collect a dozen questions that help draw the state of housing in Spain for the next twelve months.
1 2013 was the final year of the crisis?
Although there are signs of change, the crisis remains latent. Among professionals, optimism is spreading slowly, but the purchasing power of the demand for a foot continues to shrink under a framework of economic difficulties. For Juan Manuel Rallo, a founding member of the Juan de Mariana Institute in the year that is about to close is not the end “or the economic crisis and the housing market crisis,” given that imbalances are still present.
At the end of 2013 opens the doors to twelve months of  new data, do not expect big surprises, but I prefer a flat local real estate: “We hope that 2014 is the year that marks the point of the manager of the portal turning and therefore will be very striking as the results generated by the reforms implemented under the context of austerity “he says.
2. What you would expect in 2014 begin to raise prices or keep falling? What extent?
Prudence returns to position itself as the main criterion when assessing the latest price report from the National Statistics Institute (INE), which reflects the price of housing rose 0.7% in the third quarter of 2013 compared to the previous quarter. “I hope for the industry is that the price stabilises in 2014, then we can say it has touched the ground,”. According to data, there are three fundamental reasons for the demolition of the demonstrations: “restricted demand from deleveraging that family was not complete, complete oversupply and demographic changes.”
To the right of real estate agents (COAPI) Madrid, “most likely causing a brake on falling prices.” That is, continue to be areas where further down, but with less intensity and only in isolated areas and some monthly periods increases being observed. “Specialist, ensuring that prices” will continue downloading in general, but with less force “is positioned almost on the same line.
If we take the example of other countries, it is normal that after a gradual decline, there is a period of stabilisation that leads to trend upward in a couple of years. There are specific exceptions, such as London, where Citi analyst ensures you moved from one side to the other without a previous consolidation. The expert believes that, given the stock ratio and gemstone available if further falls expected-but “half price developments may obscure important differences by areas and qualities.”
director of the Institute for studies says that variations in 2014, up and down, will not be as intense, but rather there will be a deadlock, “after a year with annual declines that have passed – 11% I anticipate that this figure runs out between – 10 and – 11% at the end of 2013 to 2014 expect an adjustment from -. 7 and – 8%, “says, pointing out that the cumulative decline in house prices in second hand from 2009 (the year the portal began measuring this variable) exceeds the fall of 32 per cent. ”
3. Economic recovery that begins to realize somehow in real estate? Foreign interest perhaps?
Spain takes a few years now in the sights of international, institutional and private investment of individuals: “small investors buying opportunities in ‘money’ or marketing of new developments in areas with no stock at very reasonable prices”, are two of consequences of increasing interest to buy property in Spain. Skip to top expectations that are behind this growing interest, but in a residential area, according to Martinez Campuzano, the influence is still limited.
The small investor has seen the value under. Os ups and downs of the stock market and the decline in the profitability of deposits became attractive to provide residential. After buying homes and facilities in small packages at a substantial discount, “buyers have sold a portion and the rest who rented, get a return of between 5% and 6%,” says, which ensures that these investors are very parochial and bet on markets they know well. The strange, the spokesman for  indicates that this substance “want to buy below replacement which is still waiting for the price drops to stabilise.” Periods of alienation come into play for these opportunistic giants.
4 predictions that are manipulated for buying, selling and mortgages? Remove the low recorded?
Everything indicates that although the mortgage bearing opening would directly increase sales in the short term are not expected to be large movements in both indicators, which will hover around current levels. The credit crunch is the main cause of security, stability in granting mortgages, an appearance that “today shows no signs of changing, then it is possible to follow as it is now,” stated COAPI in Madrid, adding that “This is one of problems impeding the recovery and the lack of jobs. ” In the same vein pronounced Alemany, stating that “the housing market is now more attractive than ever, but if financing fails, only a few will benefit from the chances that are presented.”
Greater transparency and safety are imposed, but “does not seem to have banking is based on its market and just financed their homes,” indicates. However, some studies, such as BBVA Research Department, recently pointed out that in 2014 would credit again, something, considered possible happen late next year. The activity requires that credit flows, so that families can finance the home you want, to enable both companies to develop projects that provide new jobs.
5. Advantages or disadvantages that will be 2014 2013 for buying a home?
In the section on the advantages, the fact that prices will fall even more in certain areas to play bass is good news, as “more to get the best financing to buy far forward,”. In terms of disadvantages, noted: “a certain over-confidence for the future.” I think the crisis reached its end point and “can lead to many sellers waiting for the market to improve, so there would be fewer opportunities available,” as the expert points.
6. Could be expected that, in 2014, the government approved tax incentives for buying houses?
In any case, will be the opposite. Since the controversy erupted with filtering a possible retroactive elimination of the deduction for purchase executive hastened to deny. “The government is obsessed with raising taxes, not reduce them,” said. In line think Ruiz, noting that Spain “is pro-cyclical in property taxes, making the accentuation of trends.”
7 Euribor behave as expected in 2014? Have we invest in fixed rate?
The main benchmark for mortgages in Spain remains at a historically low strip, in fact, as the experts expect more falls Citi: “I honestly believe we will see the reference to one year, at levels of 0.25% – 0, 3%, perhaps in the second quarter of 2014. ” The European economy is still weak to withstand increases, as pointed Ruiz, which focuses on the fixed rate “should be the norm in mortgage financing, as the most stable and reliable markets, but now the fixed rate in Spain is prevented, it is very expensive. ” This specialist generates a desirable agreement between financial institutions, the Bank of Spain and the political power so that “once the credit normalizes going toward a model in which predominates the fixed rate.” If not, just “30 years the view is a good time to bet a fixed rate,” according to.
8 what kind of homes are the best investment in terms of expectations revaluation?
Areas are areas where reassessment is ensured ‘prime’ the big cities, but in limited supply because existing demand. In terms of places of departure harder, higher returns means higher risk, but the price is a plus. Moreover, according to Ferrer, there are places where high deeds done for “If you go with money, they put the red carpet.” The spokesman consulting firm refers to certain places of the Mediterranean axis and inland provinces like Toledo and Guadalajara, where it was built “middle of nowhere”.
The coast is a reference with regard to investment, because where there is greater volatility. “They fall a lot more, but they also have an expected rise even more,” declares Ruiz, who advised him to be careful because there is a large excess inventory in certain areas of the coast. It is for this reason that Martinez bets for big coastal cities, although he admits that “there are unique opportunities in situations of uncertainty like the present.”
9. Whether I am a seller, under the best price to sell now or hope that 2014 advance and improve the demand?
The urgency of the seller will be the difference. The personal situation may be needed to the current property owner simply bowing to the counter-offers up to 20% off been suggesting to potential buyers, as shown by Ferrer. Bartolomé, “you are not rushed and can afford to wait to do it. Those who need to sell, I do not think a few more months will improve your chances of selling more expensive. In any case, the market evolves very slowly. ”
10 months of the year which usually register more real estate deals?
Seasonality of sales is misleading. We witnessed rallies favoured shopping by tax changes, such as the VAT increase or withdrawal of deduction. According to an analyst at Citi, “earlier this year, during the second quarter and especially before the summer” times are more movements in transactions, but in the expert opinion “you have to be careful with seasonality”, even in times as little predictable as those now living.