It’s been a year since the pandemic outbreak, but the property market in Valencia in 2021 shows no sign of weakness. If anything, today’s Valencia is more expensive than it was a year ago, The Valencian has learned…
When Estado De Alarma was declared on 14 March 2020, one of the first things that came to everyone’s mind was the possible imminent collapse of the property market. Why not, people said, the same thing happened a little more than ten years ago? This time, however, the property market acted differently. Prices have not changed. As the events unfolded, the tourist season collapsed, while more and more analysts expected a price reduction of 10-20%, and in some cases even more. But none of this has happened. If anything, according to the Idealista statistics, property prices in Valencia have risen by 1.4 per cent year on year.
Idealista.com is one of the three biggest sources of information on the property market in Spain. None of these statistics are 100% correct, but one offered by Idealista was pretty much spot on in the past decade when this property portal became the largest in Spain. That’s why, reading their data, we can confidently say that the property market in Valencia is still not affected by the pandemic.
As always, there have been fluctuations throughout the year. And there are both winners and losers. The biggest loser was the barrio of Benicalap, which showed a loss of around 7% in the value of its properties after sustained pre-crisis growth. It is followed by La Saidia (-4.2%), El Pla del Real (-2.6%) and L’Eixample (-2,5 per cent ). On the other hand, the winners were Poblats Maritims (+1.9%) and Patraix (+1.7 per cent). The rest of the barrios were either up or down by less than one per cent.
The rental prices painted a very different picture. One year after the pandemic, prices fell by an average of five per cent, but in some areas more than others. The biggest drop in prices was recorded in L’Oliviereta, nearly 12 per cent. It is followed by Benimaclet (-9.5%), Algiros (-8.9%) and L’Eixample (-8,5%). When we consider that rents have increased from March to May 2020, the price difference is even higher. This was expected, however, given that Valencia had the highest rental price increase in all of Spain in previous years, all of which was attributed to its popularity among tourists and retirees.
If this article shows anything, it is a fact that many experts have not been able to predict the market since the pandemic hit Spain. What we can say without fear of contradiction is that the property market in Valencia in 2021 is still very strong.
And one thing we can predict is that once the virus fight has been won, prices will rise again. If anything, the movement restriction has changed the lifestyle preferences of many people in Europe, and even in the difficult times we are living at the moment, the influx of foreigners to Valencia continues. Once the restrictions have been lifted, that flow will become even stronger.