Altea real estate blog May 2024
Have you still not decided where you are going to buy your beach house?
What are you waiting for?
If you have class and money, come to Altea, otherwise go somewhere else…….
Although it may sound harsh to you, this is a global reality.
Those who pull the strings want the world to be strongly divided, in every sense, and especially in the economic sense.
And Altea has already chosen its path.
In this blog I am going to show you why more and more Altea is becoming a place for exquisite only…
Even though they are filling us with 1-day tourists who only spend in supermarkets.
If this continues, we are going to have to do like in Venice….charge the entrance fee!
And why do I say all this?
There are several reasons that prove this:
1.- Look at the photos I took on Sunday of the ZEM Wellness Retreat in Altea Hills.
If you look at the ones I did from the Main Avenue that goes up to the Sierra, where you can see the swimming pools…
Well, look at them carefully because if you don’t have a lot of money you won’t see them (in the pools) again.
These mounds of earth are the base of a wall that will block the view of the recreational area.
And why do you do that?
Because they expect celebrities and billionaires and they want to respect their privacy!
2.- The price of the properties:
They don’t stop going up and there are few of them for sale.
(A few days ago an owner informed me that he had sold his house in Mascarat.
The price was €3,950,000)
It had been for sale for 10 years.
And there is a lack of good houses and apartments for sale, and plots (one in Altea Hills of 1100m2 has been sold for almost €700,000), and so on every day.
There are a lot of clients waiting for their opportunity…that doesn’t appear!
Keep in mind what I am going to tell you:
If you want to buy, do it now before the hotel opens, because once finished prices in the area will rise between 10 and 20%.
A real estate guru tells you.
3.- The new trend of this world and this society.
High-class people have already had enough of this hyperconnected world that they want a non-crowded place where they can feel free without being overwhelmed.
Altea gives it to him.
And they also seek very personalized treatment in EVERYTHING.
And in Altea they get it!
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Since I have already satisfied my need to give my opinion without being asked by anyone, and this is a Real Estate blog, I will get to the point.
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LET’S GO TO THE NEWS:
NEWS 1:
The price of used housing for sale accelerates the rise in April and is already close to maximums
The price of used housing in Spain has registered an increase of 1% during the month of April, standing at 2,098 euros/m2, according to the latest idealista real estate price index. This figure is 6.9% higher than that of the same month last year while it is 0.8% below the historical maximum price of housing in Spain, recorded in June 2007.
12 Spanish Autonomous Communities show prices higher than last month.
Comunitat Valenciana (1.7%) leads the increases, followed by Murcia (1.1%), Andalusia (1.1%), Catalonia (1.1%), Community of Madrid (1.1%) and the Balearic Islands ( 1%).
Up to 38 provinces have prices higher than those registered in the previous month. The greatest increases have been experienced in Almería, where sellers’ expectations have risen by 2.5%, followed by Alicante (1.6%), Girona, Valencia, Guipúzcoa and Soria (1.5% in the four provinces) .
During the month of April, 38 capitals have also experienced increases in housing prices. The most pronounced increase is that experienced by Valencia, where sellers’ expectations grew by 3.6%, followed by Alicante (3.1%), Pontevedra (2.9%), Tarragona and Málaga (2.7% in both cases)
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NEWS 2:
The profitability of investment in housing reaches 7.3%
The gross profitability of purchasing a home to put it on the rental market has grown during the first quarter to 7.3%, since at the end of 2023 the return it offered was 7.1%, the same as in the first quarter of 2023. According to idealista’s profitability study, which relates the sales and rental prices of different real estate products, offices (11.8%) remain the most profitable real estate investment, despite giving up more than one point compared to last year, followed by commercial premises (9.9%) and garages (7%). The profitability of housing in large capitals reaches 5.8% in Barcelona or 5.2% in Madrid.
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NEWS 3:
Vicenç Hernández Reche, economist, doctor in Economic Psychology, CEO of Tecnotramit, founding partner of ENLACE and president of the real estate associations ANAI and AIC, summarizes the keys to the real estate sector:
«More policies based on incentives and less ideological interventionism are necessary»
“We are in a moment where uncertainty completely marks the business game board and, although it is not new, the different risks to which we are exposed are. The main threat is the paradigm shift that is occurring in society in which the changes are increasingly exponential and cause management skills to change and require more agility. We need to incorporate a strategic squint to continue maintaining our businesses while we monitor what is happening in the environment, which is increasingly faster and, thanks to digital disruption, more transversal and threatening for traditional businesses.”
How do you see the current situation of the real estate market a year after the Housing Law came into force?
“Worse than it was, since not only have we not achieved the necessary results to improve accessibility to housing for the most vulnerable groups, but it is also confirmed that we have an administration more focused on making politicized decisions full of biases.” ideological than in taking structural measures that go beyond the nearest electoral calendar. They have wanted to focus on the increase in prices, which is only a consequence, instead of focusing on the root of the problem, which is the lack of supply. And time is never on our side when faced with these types of measures. The luck is that the Spanish real estate sector has a high level of both experience and knowledge, and it is private initiative that will continue to drive its development and evolution.”
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Altea has suspended licenses for tourist rentals for one year.
What does Vicenç Hernández Reche think about this type of measures?
“The result is obvious.
They say that we should wait because these measures will see results in the medium or long term, but the historical reality is that these types of regulations have never worked.
It didn’t in Catalonia when it was applied for a specific period of time, nor in any city where it has been applied since the end of World War I. It didn’t in Catalonia when it was applied for a specific period of time, nor in any city where it has been applied since the end of the First World War.
In the few times that it has partially worked, it has been through specific interventions and very limited in time.
It should not be forgotten that the desire for interventionism in rental prices is not something new and we have more than enough historical evidence.
In fact, there are numerous studies published in scientific journals that show that it does not work in accordance with the proposed objectives.
But it is a measure loaded with populism and that generates electoral gains in the short term, so for political marketing it fulfills its function.”
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Well, my Stoic friends, I hope and wish with all my soul that you have a lot of HEALTH, never forgetting to practice always the ……. HAPPINESS!
See you soon
Abel
