BENIDORM may be best known among tourists for its sun, sea and nightlife, but it’s the city’s burgeoning real estate market that is causing international investors to take notice.
Back in 2008, Spain’s unemployment rate shot up by 36 per cent and when the property bubble burst, investors couldn’t get rid of Spanish real estate fast enough.
Today, however, there is a very different outlook: the economy is doing well; the banks are healthy; there is an investor-friendly legal framework; and property is still cheap compared to other European cities.
The recovery started six years ago with a €41 billion banking system bailout, and it is gathering pace as lenders clear out toxic property assets.
In the rental sector, cities like Benidorm have witnessed record average prices due to a combination of increased demand and a fall in supply.
That is because many homeowners, who had been renting out their properties during the slump, are now putting them back on the market.
Added to this is the fact short-term rentals to tourists have become a more profitable proposition than long-term leases.
Visitors flock to Benidorm for the beach, hotel and theme park pleasures by day, and the highest concentration of entertainment and clubbing venues in Europe by night.