Property Sales In Valencia Defy The National Trend

While property sales in Valencia are still going strong, the prices, mortgages and sales in Spain have decreased in January 2023, according to the latest info by Notaries. 

European property crisis is slowly finding its way into a Spanish market. Property sales in Spain decreased by 7.3%, prices dropped by 1.7%, and mortgages decreased by 16% compared to the same period the previous year. This is the latest report of Spanish Notaries, one of the few reliable data sources on the Spanish market. But, what is interesting, and a bit puzzling is the fact that the property sales in Valencia are still growing, defying the trend in the country.

Almost all Spanish autonomous regions have registered a decrease in the property market. But, at the same time, property sales in Valencia increased by 4.9%.

Countrywide, the number of property sales has decreased to 44,569 in January 2023, which is the lowest level since August 2022. Furthermore, only 20,758 mortgages were finalised, another decrease of 16.1% compared to the previous year, and the lowest figure since August 2021. However, this is not a widespread phenomenon, since almost half of the property sales were made without the need for financing. 

Although it appears that a crisis is looming, it is worth noting that statistics from Notaries only show decreases at the provincial level. The real estate market in Madrid and Barcelona is still dynamic, with prices increasing by more than 5%, indicating that these areas still have enough demand to operate and move away from potentially disastrous predictions. The same is true for property sales in Valencia, where demand in the capital city remains high, but there is also strong demand throughout the province.

As for the data on the provincial level, it is interesting that both apartment and house sales are decreasing. Flat sales have decreased by 7.3%, reaching 34,082 units, while single-family homes have decreased by 7.6% to 10,487 units.

The market has grown only in  three autonomous regions: Extremadura (5%), Valencia (4.9%), and Galicia (0.8%). Other regions, such as Murcia (-0.5%), Aragon (-1.6%), Asturias (-3%), Canary Islands (-5.4%), and Catalonia (-6.1%) are below the national average.

The steepest drops were observed in the remaining nine regions, with the Balearic Islands (-27.8%), Basque Country (-18.5%), Madrid (-18.2%), Navarra (-16.2%), and Cantabria (-16.1%) at the forefront. However, decreases were more moderate in Castilla-La Mancha (-8.7%), La Rioja (-8.6%), Castilla y León (-8.2%), and Andalucía (-8%).

For the first time in almost two years, the average price of properties sold decreased to €1,627/m2, a 1.7% decline from January 2022. The most significant decrease was observed in the price of flats, with a 2.2% decline to €1,804/m2. The average price of single-family homes was €1,304/m2, a 1.2% decrease from the previous year. 

The price of property decreased in seven autonomous regions, with Navarra (-21.7%) and the Balearic Islands (-20.7%) having the most significant decreases, followed by Extremadura (-9.5%), Basque Country (-8.9%), Asturias (-4.9%), Castilla y León (-4.4%), and Murcia (-3.3%). On the other hand, ten autonomous regions experienced an increase in property prices, with La Rioja (35.2%), Madrid (8.9%), Canary Islands (8.4%), Cantabria (7.9%), and Galicia (5.9%) having the highest increases.

It is difficult to say why property sales in Valencia are still strong, but there could be a few possible explanations. The probable reasons could be a large influx of foreigners, a low number of newly built properties, red tape when approving building applications, and, finally, a lack of available land to build on.

This article is brought to you by Expat Hub Valencia, a property buying agent  in Valencia. Using the Expat Hub’s services, you will be able to successfully navigate Valencia’s complicated property market in no time.

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