High prices, high demand

BENIDORM might offer economical holidays, but its apartments are the dearest in the region.

Despite the property market collapse and the economic crisis, the demand for new apartments still outstrips supply in Benidorm, hence its higher prices.  By the end of 2012, the price per square metre averaged €1,945 with prices of around €200,000 for new properties.

This compares with €1,507 per square metre in Alicante city, €1,824 in Valencia capital and €1,533 in Castellon. 

Outside the Community, property in San Sebastian, Barcelona, Bilbao and Madrid topped the national average of €2,212 per square metre.

Valencian Community property prices dipped by 8.7 per cent last year compared with the national average of 6.9 per cent. 

Navarra saw the greatest reduction, with a fall of 12.6 per cent, followed by La Rioja (11.6 per cent).

The Basque Region and the Canary Islands did better, with respective reductions of 4.1 and 5.2 per cent.

Inflation, especially during the second half of 2012, as well as Spain’s 25 per cent unemployment rate, all contributed to falling property prices, said property valuers, Sociedad de Tasacion.

Lower property prices will also continue to attract foreign investment, the company predicted, even though IVA rose from 6 to 10 per cent on January 1.