We often hear from clients who plan to wait for the real estate prices in Torrevieja to drop. Many who have been waiting for a price fall over the last five years are now regretting their missed opportunity. A few years ago, they could have bought a two-bedroom apartment, but now, with the same budget, they can only afford a studio. Is it worth waiting any longer? We believe not, and here are 5 reasons why.
The population of Torrevieja is steadily increasing. Particularly notable growth has been seen in recent years, with an annual increase of about three thousand residents. As of early 2023, Torrevieja had 91,731 inhabitants. During the summer holidays, the population swells to 400,000. Such a number of people need accommodation, thus the demand for real estate in Torrevieja continues to grow, and where there is demand, prices do not fall.
Recent crises have adversely affected Spain's construction sector. The rise in energy and material costs, coupled with general economic uncertainty, has led to a decrease in new development projects. Construction is now returning to pre-COVID levels, but the slump has meant that older projects are completed, and there are few new ones, or they are just starting. A shortage of new buildings and rising construction costs inevitably lead to an increase in the price of new properties in Spain.
As for the secondary market, the supply has also significantly decreased. If you want to buy an apartment in Torrevieja today, and you plan to visit in a month, there is a high chance that all the options you liked will be sold by then. In the past few years, those who wanted to sell property in Torrevieja have already done so, and the rest decided to rent out their properties as rental prices have also increased.
Urban growth has always been accompanied by new types of activities for people. An increase in population leads to a growing services market, attracting chain stores and restaurants. Investment inflows create new jobs. Private businesses such as beauty salons, laundromats, cafes, and theater studios are developing. Finally, scooter rentals, which are now essential in a big city (Torrevieja already has two). Modern society is a consumer society; the more people, the more they need everything. If a city grows and develops, there is no reason for real estate prices to fall.
Of course, the development of a modern city is impossible without proper urban planning. As known, city administrations in Spain have only recently started addressing this issue, but significant progress has been made over the past twenty years. It’s difficult to change the tight and narrow central districts, so we call them historic quarters and leave them for tourists. As for the new development plans of Torrevieja, they include not only residential areas but also city and social infrastructure facilities. All these require substantial financial investments, and the administration is prepared for this.
Firstly, the reconstruction of the so-called "facade of Torrevieja", the area of the Torrevieja port, is already underway at a good pace. This area will be transformed into a Recreation and Entertainment Center. The project aims to improve and solve many problems of the central part of Torrevieja and the promenade by organizing pedestrian zones and underground parking. Attractions, cafes, restaurants, bowling alleys, and shopping pavilions are in high demand for rental space. Everything is planned to be completed by 2024.
Secondly, the well-known project of building two 26-story skyscrapers "Torres Baraka" (26 floors, 82 meters, 130 apartments, 250 tourist apartments) in the Los Naufragos and Acequion beach area will cost the developer 60 million euros. A total of 18 skyscrapers up to 29 stories high are planned in the urban plan. Will this change the face of the city? Undoubtedly. Will everyone like it? Not necessarily, but it will definitely attract even more tourists and solve their accommodation issues.
The third multimillion-dollar project is the transformation of the Los Locos beach area. It is planned to significantly expand pedestrian areas, redirect car traffic further from the beach, making Mariano Ruiz Canovas Avenue completely pedestrian, and improve the infrastructure of the promenade and beach, increasing relaxation areas and terraces of cafes and hotels.
Such decisions will seriously change the appearance of Torrevieja, making the city even more modern and attractive for young people and business. With the growth in attractiveness of an already popular resort, real estate prices in Torrevieja will undoubtedly rise. According to our estimates, the increase could be up to 20% from current levels, and real estate prices in Torrevieja will approach those in similar coastal cities, such as Benidorm, for example.
So, delaying the purchase of real estate in Torrevieja in anticipation of falling prices is probably not worth it. Now is the best time to buy! Contact Granfield Estate, we are the best in our field.