ECONOMIC fears caused by the coronavirus pandemic has seen a potentially lucrative land auction for the building of holiday homes in a tourist area of Spain’s Costa Blanca get zero interest from bidders.
Before the Covid-19 crisis, Orihuela Council had expected to net around €20 million from three prime plots of municipal land to develop properties aimed at the holiday sector.
The authority initially had a number of major expressions of interest, but was forced to delay the auction because of the health emergency.
Orihuela’s Heritage councillor, Rafael Almagro, has revealed that because of the economic situation and constructors telling him that they are going to wait to see what happens, the authority has decided not to postpone the current auction for a second time.
Almagro said that there was absolutely no doubt that the uncertainty created by the pandemic in regard to the building of new tourist properties and the whole of the travel sector in Spain, had contributed to nobody coming forward with an offer.
The councillor stated that before the State of Alarm there were a number of constructors that had expressed a serious interest in bidding, but after resuscitating the process a few weeks ago, there no further inquiries or any even one single tabled offer.
Besides being a useful indicator of the state of the construction industry in the Orihuela Costa, the withdrawn auction means that the council will be deprived of a large amount of money that would have been ring-fenced to spend on heritage real estate projects across the municipality.
The rules dictate that it could not have diverted the revenue from the land sales into other parts of the council budget.
Almagro indicated to the media that Orihuela Council now has the option to wait and see what happens over the next few months and restart the auction for the same plots in the autumn, or they might look at other land options that could be sold in the Orihuela Costa area.
The major item in the sale was going at be at Las Colinas Golf Resort with a starting price of €14.4 million, with other plots on the market at La Cuerda and El Garbanzuelo.