Wednesday, April 08, 2015

Partial recovery

In 2000, 40,350 new homes were built in the Alicante province. In 2001 that figure rose to 41,519 and to 44,139 in 2002. At the height of he boom in 2003 and 2004, there were 52,715 and 52,727 homes built. Although the figures then fell in the following years to 46,687, 48,133 and 32,655, the market was still strong.

However, by 2008 the market had collapsed dramatically with only 8,013 homes being started. That trend continued with only 1,939 homes being built in 2010, 1,667 in 2011 and 1,329 in 2012.

Things started to pick back up in 2014 when 2,746 new homes were started and has continued into 2015. The largest market for these new homes is Britain. With the weakening of the euro against the pound, prices of second homes in Spain have become attractive again.

It is unlikely that we will see a return to the heady years when the market for homes in Spain was so buoyant that builders could not construct them fast enough to keep up with demand. At least the industry can tick over nicely again and hopefully we will not see the greed that overcame builders, associated trades and agents return. 

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