The Valencia Property market is moving fast and sometimes it is difficult to keep up. You may have been looking at your ideal Valencia Property for some time and noticed a few things:
- The property you originally looked at you can no longer find online
- The price has unexpectedly risen since the last time you looked.
- Your ideal property is now out of your price range
There are reasons for this and they are obvious:
- It has been sold
- Owners are doing this as they see other properties selling that are not as good as theirs for higher prices
- As prices rise so your budget gets you less.
Now you can tell me this is rubbish, (we had an enquiry recently where the client insisted that prices in Ruzafa, the hottest property market in Valencia, had reduced in the last two years. Yeah, go figure!!) You can tell me this is just estate agencies talking up the market but I would have to say, “OK whatever you want to believe as we are living in a post truth world“.
In this article we are talking about Valencia city mostly but a couple of examples will show that things are starting to move in other areas too.
Bearing this in mind what should you expect when buying your Valencia City Property in 2018? Let’s take a look shall we? (remember to click on the links in the article for more information)
The most popular areas for foreign buyers continue to be the traditional ones, the Cabanyal, Ruzafa, Ensanche, El Carmen and the Patacona. However, because prices have risen so much in these areas and due to a lack of supply they continue to rise, other areas such as La Zaidia, Campanar, Ayora, Nazaret, La Roqueta, Nou Moles and Monteolivete are now getting many more buyers.
Let’s take the areas mentioned and look at typical prices for 2 bedroom apartments. In the Cabanyal in the good areas prices are now around 150k for a two bedroom apartment not needing extensive modernisation. No longer will you find 80k bargains. In Ruzafa expect to pay around 180k and upwards now for a key ready property. Ensanche is slightly higher than Ruzafa and el Carmen depends on the area but expect a slightly lower price than in Ruzafa. Patacona prices start around 200k and vary according to orientation, terraces and views.
In the newly popular areas prices differ. La Zaidia gets you a two bedroom property for around 130-150k. In Campanar the proximity to the riverbed is key or the new build quality of the property but expect to pay around 160k, Ayora you can still find places around 120k, Nazaret prices start around 65k, La Roqueta you can find good places around 170k, Nou Moles is surprisingly affordable with this apartment available at 142k and Monteolivete is a cheaper version of Ruzafa with the added bonus of being near the City of Arts and Sciences and the riverbed and you can buy around there for around 150k.
Obviously all of these prices are orientation only as prices depend on the road the property is in, the building, the way the property faces, the current state of it etc… but as an idea of how prices stand in the summer of 2018 they give a good idea.
DO NOT EXPECT TO HAVE OFFERS ACCEPTED.
Normally we wouldn’t say this but right now this is the situation. If a property is 180k then you will probably have to pay 180k and in rare cases more. In Valencia City’s most popular areas if you don’t buy the property then the owners know that currently there are so many buyers around that another buyer will be around in a moment and that buyer will offer them what they are asking. Some owners are asking ridiculous prices (You won’t see those properties on our site) but if a property is well priced for the area then it sells.
We really hate saying this but it is how it is. Even outside the city a client has had an offer of 417k rejected on a property at 420k just this week leaving us banging our heads against a brick wall in disbelief. We have sold two flats this week both at asking price after offers just a couple of thousand below were rejected and we even had an offer at asking price where the owner than said no and they are raising the price due to the interest they have in the property! (Doh!)
Supply is really tight, especially in the most popular areas. Do not expect to have a choice of twenty properties to suit your requirements, there may be only one of two suitable places for what you specifically want. And remember you may have to make a quick decision so make sure you have those ducks in a row. The further you loosen your requirements the more choice you will have but if you insist on a Penthouse apartment in Ruzafa for example then you may find that there are none available and as soon as one appears it then disappears the next day.
Buying to Rent
You should expect to rent it immediately it is ready. The rental market has been decimated by Airbnb and other holiday rental sites meaning that there is a huge latent demand for rental properties for medium and long term rental. Obviously you need to be careful who you rent out to but expect to find a ready and willing market when you put something up for rental.
Prices are rising in the city still so if you purchase and eventually decide it’s not for you then the likelihood is that you will not lose out. Remember though that buying property in Spain has associated costs around the 15% mark with 10% of that being tax on purchase. After you buy taxes are low, IBI (Council tax) is reasonable and building service charges (Community) are also generally low. If you hold a place for a couple of years then you should expect to be in the black if you need to sell for whatever reason but obviously this cannot be guaranteed. The most important thing is probably the lifestyle bonus.
Living in Valencia is becoming more and more fashionable and there are always more areas that people are discovering and are getting opened up to people looking to buy. Wherever you are in Valencia you are not far away from the centre and it is an easy city to navigate and get around. You can be anywhere else in the city in just half an hour maximum unlike many other cities in Europe and around the World. This means even in the less popular areas there is now competition for properties because people realise that living in Valencia is wonderful from a lifestyle perspective. Expect this tendency to increase in future as more people discover the city. Grab your piece of the city now while you can and then you may well look back in the future and think “Yes, I did the right thing” After all there are at least 112 reasons to move here. This is perfect Lifestyle Design.