Despite the many imponderables in 2022, there were still significant price increases of over 10% in some cases. In Moraira, prices rose by approx. 11% and reached an average price of 3,500 €/m², in 2021 3,000 €/m² was actually the magic limit.
However, for the first time in years there have been price decreases from November to December amounting to -0.3% from €3,535/m² in November and €3,523/m² in December. This could be the impact of the sharp rise in interest rates. For loans with an expiry of 70% in the amount of €300-400,000 with a term of 30 years (fixed), 4% interest is now charged. In this case, the debt service would be in the range of €1,300 – €1,800 per month. Areas like Denia, Calpe or Altea continue to have slight positive increasing growth rates of 1.8%, 3.4% and 0.7% respectively. In the less sought after areas like Gata de Gorgos prices are also falling. Therefore, this could be a trend for 2023 to watch.
Conclusion:
2022 was a strong year especially in Q1-2 and has clearly lost momentum compared to Q4 and there are first signs of falling prices and a market correction. With expectations of another rate hike in Q1 2023 to reduce inflation, the market will continue to lose momentum. Only buyers with strong capital will access quickly and also at higher prices. For 2023 you should see an increase in offers. As of today, January 1st, 2023, 13,977 properties are for sale in the Marina Alta at idealsta.
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