The Property Market Has Gone Crazy – Why?
Whilst in Lockdown in Spain we began to receive calls from the UK that we thought were very strange. People were calling to ask about properties and how to proceed to purchase. At first, I thought are these people crazy? Are they really thinking of buying without actually seeing the property?
Two weeks into lockdown someone who had enquired about a property in Salinas had sent us a deposit of 20,000€ along with a WhatsApp asking us to contact a lawyer on their behalf and also confirm when completion can take place.
We presumed this was a “one-off” but no, the calls kept coming and due to being under Lockdown we didn´t have an opportunity to take on new listings.
Following the lifting of restrictions, we had a number of calls from Spanish Vendors asking for the Country Houses to be taken off the market as they had been making use of them. I should explain at this point that the Spanish in this area, Sax, Salinas, Villena, Petrer and Elda are wealthy people and own at least three properties, an apartment in the town, an apartment on the coast and, a Country House. Suddenly, the Spanish had begun to use their Country Houses more and more and enjoying them and many lost the desire to travel after Covid.
This was the beginning of the lack of availability of properties and with supply and demand taken into consideration it was also the beginning of the rise in prices.
The demand has never stopped and the times when inland agents had a staple product, 3 Bed 2 Bath Villas with a pool and 10,000m2 of land at around 150-175,000€ were over and, last week a 3 Bed 2 Bath with a pool and land sold for 240,000€ and a 4th Floor Apartment in the town of Sax without a lift was rented out at 425€ per month, a good 40% increase on rental prices pre-Covid.
The Alicante region and in particular Sax and Salinas due to their extraordinary infrastructure being only 30-35 minutes to Alicante Airport and a maximum of 35 minutes to the beach continues to increase in price and decrease in availability.
You may look at the advertising portals and say “nonsense, I can see loads of properties” and this is true but you will find to your frustration when you ask about them you either do not receive a reply or they were sold up to three years ago and agents with hundreds of properties shared between a group of them do not update each other when a property is sold. I know just how frustrating this is as I am currently looking for a town house in Sax to purchase, one can almost give up the will to live after 15 enquiries come to nothing.
Two properties on our books that represent extraordinary value are these two:-
Property 18134 on our Website - 4 bed Villa in Sax with Guest House, Pool and Land
Property 18099 - 4 bed Villa in Sax with Pool and Casita