Alicante: A beacon of stability in the Spanish real estate industry. Image: gzabala / Shutterstock.com.
In a time of widespread economic uncertainty and soaring interest rates casting a shadow over regions across Spain, Alicante has emerged as a bastion of real estate stability and profitability.
This accounts for more than 50% of real estate transactions in the Valencian community and brings in investors from all over the world to take advantage of its resilience.
What makes Alicante stand out in this difficult situation?
The answer lies in a confluence of various factors. The state boasts strong and unwavering demand, complemented by attractive real estate prices.
Investors are overjoyed by the prospect of high profitability, with some towns in Alicante, such as Elda and Alcoy, earning returns of over 9%.
This unique combination has made the state a haven for investors weathering the turmoil of rising interest rates, soaring mortgage prices and meager returns due to weak bank deposits.
INMOADAL President Julián de la Peña is full of enthusiasm as he reflects on this year’s trajectory.
He highlighted the significant surge in demand and successful deal closings.
The investor landscape is diversifying and often welcomes experienced professionals as well as beginners who want to embark on their investment journey from their home base.
Mr. de la Peña astutely points out that, “When pursuing profitability in real estate, it is necessary to take into account related expenses in order to measure the return on investment.”
“Think of this: If you invest €300,000 in property, you could potentially earn up to €1,500 a month in rent.”
“However, if you choose a more modest €80,000 property, you can still earn €700 in rental income, making it much more profitable and attractive.”
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