Jávea’s tourist rental market hits 10% of total housing stock

Drawing on our report ‘Analysis of the residential real estate market in the city of Jávea. First quarter 2022’, this post provides an in-depth analysis of the tourist and traditional rental market in recent months in the province of Alicante, and particularly Jávea.

According to data published by Spain’s National Statistics Institute (INE) in August 2021, Alicante’s housing offering reached 33,776 homes, with housing available for over 180,000 people. This demonstrates that the province has one of the highest numbers of tourist homes in the country, representing 11% of the national offering, only surpassed by leading destinations such as Malaga or the Balearic Islands.

1. Number of single-family homes places Jávea amongst the towns with the greatest number of rental properties

In August 2021, Jávea was able to offer just under 2,800 tourist properties, with capacity for 17,260 people. Further examination of the data reveals that the number of properties offered represents 10% of the total housing stock in Jávea. Furthermore, if we compare the level of beds with the rest of the region of Valencia, it is clear that this figure represents around 25% of the hotel offering or 10% of the tourist rental market.

Within the province, Jávea sits in fifth place in terms of the number of tourist properties, behind Torrevieja, Alicante, Denia and Calpe. However, the Alicante town leads the way in first place in terms of the number of properties.

A national comparison of municipalities with a high number of tourist apartments places Jávea in the top 20. Going by the per-person count, however, it would sit within the top ten, behind the big cities or well-established destinations such as Marbella or Pollensa.

The volume of per-person capacity is due, among other things, to the construction profile: single-family houses with large plots and space for more than 6 people per home, located in the south of Jávea.

2. Jávea and the long-term rental market 

It is very difficult to ascertain the exact number of long-term rental homes in an area. In the case of Jávea, we have taken into account the declared numbers collected by the State Index System, which would be in the region of 1,600 per year, or the equivalent of 6% of the town’s housing stock. Based on the same data, almost 80% of rental contracts would be in collective housing and 20% in single-family housing.

Although rental prices and average lease amounts have evolved, no clear trend has emerged. Certainly, we can highlight the fact that the final price may be lower than the asking price and that there may be variations of up to 100%, depending on the type of home and the area. For example, in districts 1 and 2, they fluctuate between €450 and €4-4.5/m², while in district 3 they reach €6.5/m².

When comparing Jávea with the rest of the province, it is clear that the declared number of rental properties is linked to the population and existing housing stock. In terms of the average price and monthly amount, it’s worth highlighting that Jávea is at the higher end, with €5.5/m² and €500 in collective housing and €5.6/m² and €663 in single-family and rural housing.

With regard to Alicante, the province is located in an average area with a median rent of €412 and an annual variation of -0.1%, and a median rent of €5.0/m² per month with a 2% increase for collective housing.

 

3. The rental market according to real estate portals

According to idealista.com, the average rental price is higher than indicated in the official statistics produced by the Ministry of Development. In March 2022, it reached €9.5/m² per month, an increase of 22% on the previous year.

The rental market in Jávea suffered a drop as a result of the pandemic, reaching €7.61/m² per month. During 2021, around 700 rental homes were advertised, a figure that contrasts with the 2,770 tourist homes offered during August or the nearly 1,500 that were reflected in the income statements of leaseholders in 2020.

In terms of the evolution of rent, two patterns must be taken into account: the pandemic and the summer months. In 2021, the average duration of a stay was approximately 4 months, which translates into a fairly agile rotation. A slight adjustment of 1.4% in terms of the price adjustment percentage can be seen, explained by the limited lifetime of the properties on offer and a low volume.

The type of housing must also be taken into account, with collective housing tending to dominate at just under 65%. In terms of the price level, the average rent stands at €1,277 (€965 in collective housing and €1,895 in single family housing).

The variation in zones is most prominent in Jávea. The zones with the highest number of properties are the beach areas (25 – inland in front of Arenal beach; 3 – inland, on second line from the beach to the north of Arenal; 26 – on first line by the beach that leads to the Arenal beach; and 21 – the second line beach zones to the south of Arenal). The housing in this area is more modest and predominantly collective, with monthly prices of around €10/m² and €1,000. In addition to these, there are the large single-family homes in the south, especially in Balcó al Mar, with 300m² and priced at around €2,000.

Toñi in 29 Jan 2023