Property prices in Valencia in April 2021 remained stable, according to the most recent data, with only Ruzafa showing a substantial increase.
Although it is not a spectacular increase, the value of properties in Comunidad Valenciana is still rising. According to the most recent figures for April, published on Idealista, the year-on-year growth in prices in the Comunidad is 3.7 percent, which is nothing short of a miracle given the current health crisis. The highest increase was recorded in the Alicante Province, followed by a 1.2 percent increase in the Valencia Province, and a 2.2 percent decrease in the Castellon Province.
This is in stark contrast to the predictions of many real estate agencies and specialists, who anticipated a sharp drop in prices in Valencia as a result of the health crises. Some, such as Barnes International, forecasted a drop of up to 30% in the coming months (this was done in September 2020) as a result of the coronavirus pandemic.
Another factor that was expected to lower prices was Brexit, and the assumption that the market would lose a large number of buyers from the United Kingdom, traditionally a driving force in the real estate business. However, the pandemic is slowing, Brexit has passed, and the market hasn’t moved much.
Given that travel was limited last year, and real estate agencies that normally rely on foreign purchasers had no real customers, it is safe to say that the property market in Valencia demonstrates a certain level of maturity and confidence, while waiting for better times, which are certain to arrive soon.
The month on month price increase in Valencia province is only 0.2 percent indicating that there is no significant movement on the market at the moment. The trend of rising prices in the city and falling prices in the countryside continues, with the exception of the L´ Horta Nord and the seaside villages, which are beginning to appreciate in value, as well as the villages around Valencia popular with expats.
In Valencia City, the areas that saw a drop in prices over the last few months are only now recouping their losses. This is typical of the most affluent neighbourhoods, such as L’Eixample and Ciutat Vella. They went through a cycle in which prices began to fall in August of last year before rising again in January of this year to the levels seen at the start of the pandemic. The only exception is Ruzafa, which has seen a healthy 5% increase in value since the start of the Corona crisis.
The current situation indicates that prices will most likely remain unchanged in the coming period. There are fewer buyers than ever before, but as the health situation improves, buyers will return. First, those from Spain, who have been barred from entering La Comunidad Valenciana for a long time, and then those from other countries.
Many small coastal real estate companies stated that Spanish purchasers from outside the province accounted for 50% of their sales, with foreign buyers accounting for another 30%, for a total of 80%. This is likely to start driving the market in La Comunidad Valenciana upwards, possibly as early as this summer. In addition, factors such as a drop in the number of new developments and land prices growing at an unprecedented rate (due to logistical and energy requirements) would speed the recovery of the property market.
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