The city of Alicante is one of the most profitable places in Spain to invest in real estate.
This is due to the fact that real estate can be acquired at an affordable price, the city is very well connected and is an important tourist attraction. All this accompanied by an economic growth trend.
An opportunity to highlight is the tourist rental, that is to say, making your home available to travellers, thanks to platforms such AIRBNB or BOOKING.
Why invest in vacation rentals in Alicante?
In relation to Alicante, most of the properties can NOT be converted into tourist housing in this locality.
This may seem like a problem, but if you have a property or you are going to buy one, which can be converted into tourist accommodation, you will have the following advantages:
- You will not have as much competition to make your tourist property profitable as it happens in certain cities.
- If you want to sell your property, it will increase in value if you have a tourist licence. There is more and more demand for the purchase of properties with this licence.
Moreover, the sooner you get the licence, the better. In the future there will be more restrictions. Probably, in the not so long term, it will be limited to ground or first floors.
Other benefits of renting out your home on a holiday basis
- Short term rentals have a very high profitability, in the short term.
- The stay in tourist accommodation is usually longer than in hotels.
- It is usually a cheaper option than hotels and therefore very popular with travellers.
- It is your business, you will have more financial freedom.
- It offers security in the payment of instalments, as it is usually paid in advance.
- Consumers usually prefer to spend their holidays in a house with a kitchen and other comforts, avoiding unnecessary expenses.
Alicante is one of the most profitable cities, due to its high tourist rate and affordable housing prices.
- The holiday rental market is growing more and more. More clients, more platforms like Airbnb, more managers, etc.
- Headache with management, cleaning, etc. (Tip: Hire a rental management company).
- Difficult start-up.
- Doubts about legal and fiscal issues.
- Buying a house is a very high investment.
- Seasonality. Alicante has good weather from March to the end of October. In addition, it also has winter tourism, thanks to its historical, gastronomic and nightlife attractions.
Zones and neighbourhoods to invest in holiday rentals in Alicante
In short, the areas most in demand by tourists are the centre of Alicante and the district of Playa de San Juan.
These areas are characterised by high property prices. For this reason, it is interesting to focus on properties for renovation as the investment is usually cheaper.
Within the centre of Alicante, a very good neighbourhood to invest in is the Santa Cruz neighbourhood.
On the other hand, similar to Playa de San Juan, the Albufereta neighbourhood has the best prices in the area.
Finally, we also recommend the area of the museum of Marc, for example, the neighbourhood of Carolina Bajas, as the average price of housing is medium-low. In addition, it is very well connected to the centre and is close to the sea.
Contact us and we will advise you..
Best properties to invest in tourist rental
Nowadays, families are not usually large. Therefore, it is not so important to focus on the number of rooms. It is better to focus on other aspects, for example:
- Well-equipped bathrooms and kitchens.
- Terrace or solarium are highly demanded.
- The urbanisation. (e.g. swimming pool, communal play areas for children, etc.).
- Air conditioning essential.
- Parking area.
As mentioned above, many investors buy properties for renovation or premises to convert them into tourist accommodation, as it is more economical.
Technical inspection of the property before buying
If you are thinking of buying a property, you should be sure that the property meets the technical requirements and is in good condition.
On many occasions we meet clients who have just bought a property to convert it into a holiday home and it is not possible to do so. Other times, it is not even habitable. Other times, it is not even habitable.
On the other hand, the technical condition of the property and the building in which it is located must be taken into account, as it is necessary to cover repair costs and time, which were not contemplated in the financial plan. E.g.) Rehabilitation of the building, installations, damp, renovation, etc.
In short, not taking these aspects into account means that your investment will not be the right one.
These are some of the reports or technical aspects that should be taken into account before buying a property in order to obtain a tourist licence:
- Urban development compatibility report.
- Certificate of habitability.
- Energy Efficiency Certificate.
- Certificate of aptitude derived from the ITE.
- Building Evaluation Report (IEE).
- Cost of the reform, if necessary.
QEE Ingeniería will help you to assess all these aspects and advise you.