How Does Tourism Affect Real Estate Prices in Costa Blanca?
Tourism plays a key role in shaping the real estate market in the Costa Blanca region. In this article, we analyze how the influx of tourists impacts property prices, investment demand, and the availability of housing for local residents.
🏖️ Tourism as a Driver of Real Estate Price Growth
Costa Blanca, with its picturesque beaches and mild climate, attracts millions of tourists each year. This interest translates into:
- Increased demand for properties: Investors, both domestic and foreign, are purchasing properties with the intention of short-term rentals for tourists.
- Price hikes: In cities like Calp, property prices reached €4,190/m² in 2024, one of the highest rates in the region.
🌍 Foreign Investments and Their Impact
Foreign buyers play a significant role in the Costa Blanca real estate market:
- Dominance of foreigners: In the province of Alicante, which includes Costa Blanca, over 20% of real estate transactions are made by foreigners.
- Investor preferences: British, German, and French buyers often choose this region for purchasing a second home or investing in tourist rentals.
🏠 Consequences for Local Residents
The dynamic growth of tourism also brings challenges for the local community:
- Rising rental prices: In tourist towns like Benidorm, rents have increased by nearly 20% over the past year, averaging €16/m².
- Limited housing availability: Converting residential properties into tourist accommodations reduces the supply of available housing for permanent residents, making it harder for them to find affordable living spaces.
📈 Future Prospects
Tourism remains a key factor influencing the real estate market in Costa Blanca:
- Continuation of the upward trend: Further increases in property prices are expected in attractive tourist locations.
- Legal regulations: Authorities may introduce regulations aimed at protecting local communities from the negative effects of excessive tourism, which could impact the real estate market.
📝 Summary
Tourism significantly impacts the real estate market in Costa Blanca, contributing to rising prices and investment demand. However, the dynamic growth of this sector poses challenges for local residents, especially regarding the availability of affordable housing.
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