However, it is a losing battle for households. The new work “tends to prioritize vacation use be more profitable for the promoter”. All this, while both first and second homes come together in second-hand homes. So although the initiators in coastal areas have outsourced their activities nearly 23% continue or increase the promotion of holiday use in most areas analyzed by Tinsa.
Developers prioritize second home projects
As indicated in the Tinsa report, major developers are prioritizing second home projects over primary homes. In this way,and they build fewer houseswhich not only implies a smaller supply of homes, but is also intended for more holiday use. That is to say that they become more expensive products because of the greater demand for them. So the price of holiday homes has increased by 89% in coastal areas.
Many households are thus faced with prices that are more typical for renting or buying homes for holiday use. In these cases, They are higher than many families can actually afford. This is the case, for example, in Malaga, the Balearic Islands and Alicante, where house prices rose by 9.3%, 8.8% and 7.2% respectively.
As indicated in a document prepared by Tinsa, the increase in these prices would also be determined by the demand for houses on the coast. Mainly from foreign buyers, but also national. In the same way, they also increase thanks to investors, who obtain many economic benefits of tourist rentalwhich has reduced the first home rent.
Tinsa stresses that this is a moment when it is 'vital' to tackle housing development by 'rethinking the urban fabric'. This should integrate the 'need for refuge with holiday use', as well as with a form of sustainable tourism.
The sale and purchase of homes, led by foreign buyers
Since 2022, a year that saw a record-breaking year for home sales, these transactions have declined on the country's coasts, as indicated in the Tinsa report. In one year, these activities have therefore declined up to 11.2%, as a result of a moderation in demand for housing.
This decline was particularly strong on the islands, where the momentum in home sales was greatest. In concrete terms, the contraction of this activity amounted to 16.7% as a result of supply constraints and price tensions. Another place where these operations have dropped significantly is the North Coast, down to 11.8%. And at the provincial level, it has dropped in 21 of the 22 coastal provinces.
This decline has not only occurred among domestic buyers, but also among foreign buyers. Despite this decline, however, they still retain a central role in the purchase and sale of homes in coastal areas. International demand will therefore only increase in 2023 represented 25% of the total.
Among the nationalities that buy the most homes in the Spanish coastal areas are the Great Britain, followed by France and Germany. These are also the prominent nationalities in the purchase and sale of holiday homes. On the other hand, the increase in the purchase and sale of homes by Italians, Belgians and Irish is noticeable. And in the same way, the demand from other nationalities, such as Chinese or Americans, has also increased.
