Despite more than 40 years in the business, one is still surprised every day by what one sees and hears about the price of real estate in Altea.
We have thoroughly analysed 1,416 property sales transactions based on real, reliable and verifiable data obtained from the Land Registry and this is the result of our analysis
- The average price per square metre (according to title deeds) in Altea during the current year 2022, including the most recent sales, is 2,389 €/m2, which represents an increase of 14.4% compared to the year 2021 during which the average price was 2,088 €/m2. As can be seen in the following graph, the average price per square metre in Altea is higher than the national average and significantly higher than in the rest of the province of Alicante and the Valencian Community.
Average price per square metre
- The average surface area of the properties sold during the current year 2022 was 114 m2 and the average price per property, including villas and flats, was 272,346 €, much higher, therefore, than the national average price and more than double the average price in the rest of the province of Alicante and the Valencian Community, as can be seen in the following graph.
Average price of properties sold
While it is true that property prices in Altea are higher than the national, regional and provincial average, the reality is that they are nowhere near the level of prices of some properties in central areas or luxury urbanisations in other municipalities such as Madrid, Barcelona, Marbella or some of the Balearic Islands.
However, there is no shortage of property owners, developers or estate agents in Altea who fantasise about the possibility of obtaining astronomical prices for the properties they offer for sale, which in reality no reasonably well-informed buyer will pay.
Of course, the fact that the average price per square metre in Altea is currently 2.389 €/m2 logically implies that some properties are sold for much higher prices. But… What is the highest price per square metre ever paid in Altea?
The highest price/m2 paid in Altea was 7.586 €/m2, and corresponds to a luxury flat on the first line of the Mascarat beach, whose 188 m2 were sold for 1.425.000 €. This is the highest price/m2 paid in Altea over the last 10 years.
The only other two properties sold for a price/m2 above 7.000 € were two luxury flats in the first line of the Cap Negret area, one of 84 m2 sold for 614.000 € and the other of 99 m2 sold for 707.000 €, i.e. for 7.731 €/m2 and 7.154 €/m2 respectively.
As far as the price per square metre of the villas is concerned, only one in the whole municipality exceeded (only in theory) the price of 6.000 €/m2. This is a villa in La Olla of 360 m2 according to the deed and 507 m2 according to the Cadastre, sold for 2.400.000 €, that is, for 6.667 €/m2 taking as reference the registered surface but only 4.724 €/m2 if we take as reference the cadastral surface, which in principle seems more in line with reality.
Calculation of the floor area of a dwelling
It is perhaps worth clarifying that the calculation of the ‘square metres’ of a dwelling is very heterogeneous and in practice constitutes a totum revolutum. Some deeds of declaration of new construction state the ‘useful surface area’, which in theory is the ‘walkable’ surface area, while other deeds state the ‘constructed surface area’, which in theory is the surface area enclosed within the outer perimeter of the dwelling.
However, this is not exactly the case, since covered terraces are normally counted at 50% and uncovered terraces are not, but this is not always the case. And, to finish off the totum revolutum, we have the ‘deeded surface area’ and the ‘cadastral surface area’, which often do not coincide with each other or with the real surface area of a property.
Finally, it should also be clarified that when calculating the market value of a property it should be taken into account that not all ‘square metres’ have the same value, as a square metre of a living room or a bedroom is not worth the same as a basement, an attic or a semi-covered terrace, as well as the value of other surfaces such as a swimming pool, a tennis or paddle court, landscaped areas, the access roads or the enclosure walls of the plot of a villa.
All these ‘square metres’ count to a greater or lesser extent and must be taken into account individually when valuing a property. We must be very clear that generalisations are fine for statistical purposes but cannot be adopted as a basis for calculating the market value of a specific property.
What was the highest priced villa in Altea?
According to data obtained from the Land Registry, the highest price paid for a property in Altea was 3.400.000 €. This is a modern villa on the first line of Mascarat, built in 2014, of 722 m2 according to the title deeds and 850 m2 according to the land registry (and 1.945 m2 of plot). That is to say: its price/m2 was 4.709 €/m2 taking as a reference the registered surface or 4.000 €/m2 taking as a reference the cadastral surface.
No other villa sold in Altea exceeded the price of 3.000.000 € and only five of them exceeded the price of 2.000.000 €. Two in the Mascarat area, another two in Altea Hills and one in La Olla.
Of course, there are estate agents who, for unknown reasons, will say that they sold ‘many’ villas for more than 2.000.000 €, even for five or six million euros, but such statements are nothing more than pure and simple fantasy that bears no resemblance to the pure and simple reality. In my 42 years as a Real Estate Agent more than 2.000 deeds have passed through my hands (not only in Altea) and many others through my lawyer’s office and I have not yet seen any property sold in Altea for more than 2.000.000 € (in other places, yes).
By price range, the properties sold in Altea correspond to the following scheme:
|PRICE||% PROPERTIES SOLD|
|More than €3,000,000||0,07 %|
|From 2.000.000 € to 2.999.999 €.||0,35 %|
|From 1.000.000 € to 1.999.999 €.||1,34 %|
|From 500.000 € to 999.999 €.||9,75 %|
|From 250.000 € to 499.000 €.||28,11 %|
|Less than €250,000||60,38 %|
Things being what they are, it is shocking to see advertisements for villas such as one being offered in Altea Hills for €7,500,000 on the property portals. And even more shocking is the fact that there are more than half a dozen estate agents offering the same villa on the same portals, a nonsense that only leads to commercial ‘burning’ of the property. The ‘result’ is to be expected: the villa in question was not sold despite having been on the market for a long time, it will hardly sell for that price and will remain on the market ‘sine die’ until the price is adjusted to reality or the owner withdraws it from sale.
It is also shocking to see how the only villa in Altea that was sold only a few years ago for 3.400.000 €, is now being offered by almost a dozen real estate agencies on the same portal at the price of ….. 6.400.000 €. !!! Of course it is a magnificent villa of modern style and recently built (2014), located in a privileged place, but … is any buyer going to pay almost double the price for which the current owner bought it less than 10 years ago? It seems unlikely but nothing is impossible… I once heard one of those agents who advertise such villas say that ‘there is always a Russian for such villas…’ and that may be so but it seems to me that such Russians are in short supply at the moment…
Of course, if we look at the price per square metre there are agencies that advertise villas, usually in the Altea Hills area, as if they were in Calle Serrano in Madrid or in the most exclusive areas of the super-luxury villas in Marbella or the Balearic Islands. So, for example, we have seen advertisements for a villa of 190 m2, built on a plot of only 900 m2, for 2.900.000 €, that is to say for a whopping 15.263 €/m2, nothing more and nothing less! And that’s just one example. You only have to look at the ads published, for example, on idealista to see that there is no shortage of property ads for €8,000, €9,000 or €10,000/m2.
It is true that property prices in Altea are currently rising like crazy, but the reality is that, until now, according to data obtained from the Land Registry, the price/m2 has never exceeded 8,000 € and that only a meagre 1.41% of the properties sold in Altea exceeded the figure of 5,000 €/m2 and that is taking as a reference the registered surface area, which on many occasions is less than the real or cadastral surface area. By price ranges, always taking into account the registered surface area, the reality of the price/m2 is as follows:
|From 7.000 to 7.999 €/m2||0,28 %|
|From 6.000 to 6.999 €/m2||0,21 %|
|From 5.000 to 5.999 €/m2||0,92 %|
|From 4.000 to 4.999 €/m2||1,84 %|
|From 3.000 to 3.999 €/m2||6,78 %|
|From 2.000 to 2.999 €/m2||26,90 %|
|From 1.000 to 1.999 €/m2||56,93 %|
|Less than 1.000 €/m2||6,14 %|
A curiosity: As can be deduced from this table, currently in many cases the price of some properties in Altea is lower than their replacement cost, i.e. what it would cost to build the property again taking into account the current prices of labour and materials as well as indirect costs (architect and technical architect fees for project and construction management, geotechnical study, planning permission, quality control, health and safety projects, etc.).
However, the fact that the price at which a property is offered is lower than its replacement cost as new does not always mean that it is a ‘bargain’, as the depreciation of the property over time must also be taken into account. The costs of renovating or refurbishing a more or less old property can be significant.
Conclusions after in-depth analysis of 1,416 sales of properties in Altea
- Average price/m2: 2,389 €/m2
- More than half of the properties in Altea were sold for less than 2.000 €/m2 and only one in ten properties were sold for more than 3.000 €/m2.
- Not infrequently, the price of a property in Altea was lower than its replacement cost.
- Average price of a property in Altea: 272.346 €.
- Highest price/m2 paid to date in Altea: 7.586 €/m2
- Maximum price paid for a villa in Altea: 3.400.000 €.
- The highest prices/m2 are for luxury flats, not villas.
- The highest prices/m2 are for seafront properties.
- The factors that determine a higher or lower price/m2 are as follows:
- The location, with the prices of properties located on the seafront being the highest, followed by those located close to an urban centre or the sea and those located in luxury or prestigious urbanisations or environments, such as the golf course or Altea Hills.
- The views, the most valued being the panoramic views over the bay of Altea.
- Architectural design, with the ‘modern’ and ‘Ibizan’ styles currently being the most valued.
- Orientation, with south and south-east orientation being the most valued.
- The area and configuration of the plot as well as, where appropriate, the maturity and extent of landscaped areas
- The quality of materials and finishes
At ALTEAINVEST, in addition to having a complete database of our own, having sold more than 2,000 properties in the area over the last 43 years, we have direct access to other reliable and verifiable data that allows us to know the exact REAL prices of each and every one of the properties recently sold in Altea, including those sold by their owners directly or by other real estate agencies.
In addition, we compare the size, location, orientation, floor space, amenities and other factors that affect the selling price of each property we offer for sale with that of other properties that have recently sold and also with that of other similar properties that are currently for sale and that a potential buyer is also likely to view or visit.
Quite often homeowners have a tendency to overvalue their homes, perhaps because of the care with which they designed or built it or the love with which they renovated or decorated it, without realising that potential buyers may not value the amount of care or love that the homeowner put into their home. This is a reality, but it is not always the case: when an owner has undervalued their house we have let them know so in order to help them get the money their house deserved, but we know that
some agents, either because of their lack of professionalism or to try to sell a house more easily, suggest a reduction in the price to the owners and others, on the contrary, will inflate the selling price to try to get the owner to entrust them with the management of the sale of their house.
Setting the right selling price is crucial. Overpriced homes are not likely to sell. Overpricing is the number one mistake made by homeowners who want to sell their homes.