The real estate market in Valencia is finally waking up, although year on year sales in the Valencia Community increased by only 17 percent in March, compared to nearly 60 percent in Madrid.
The Spanish National Statistics Institute (INE) recently published figures are indicating that the real estate market property market is reviving, with 42 percent more property transfers registered in March 2021 than the same month last year.
This increase was expected because, in March 2020, the entire country came to a halt when the Estado De Alarma was declared. At the time, Notaries were only registering emergency property transfers that could not be postponed any longer.
It’s worth noting that La Comunidad Valenciana ranks near the bottom of the list of provinces with the highest growth rates. In terms of year on year growth, Valencia Community is the fourth worst province on the list, trailing only Murcia, the Balearic Islands, and the Canary Islands. Madrid leads the way (with a nearly 60% increase), followed by Cantabria (57%), and Rioja (57%). (56 percent ).
This data is not shrouded in mystery. While Madrid was one of the provinces with the laxest regulations, Valencia was the province with the most severe restrictions, which hampered property trade. It is estimated that in La Comunidad (outside of Valencia City), approximately 80% of property transactions are completed with buyers from outside the Province – 50% of buyers typically come from other parts of Spain, and 30% are foreigners.
But, none of these prospective buyers could have come because La Comunidad had been closed for months. As a direct consequence, many small estate agencies, particularly in coastal villages, have struggled to survive, and some have closed their doors. A slight increase in the number of completed sales indicates that the policy of isolating the Comunidad, while saving lives, had a significant economic impact on the property market.
On the flipside, it’s difficult to imagine that people looking to buy property in La Comunidad Valencia will opt for another province as a result. So, it is safe to assume that property sales will show a significant increase in data from May, when mobility restrictions were lifted. But these figures will be available to us only in July.
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