At the end of last year we wrote an article, you can see it here, about the end of Valencia’s Airbnb based property market. In the article we suggested that there are other ways of getting value for your property rather than trying to airbnb it. Despite this, as I write this, in the city of Valencia there are currently 4561 flats or houses being advertised on airbnb for short term rental of the whole apartment. See the data here.
In comparison, on the largest property portal in Spain, Idealista, there are just 2738 properties listed for long term rent in Valencia city and many of those are repeat listings where various agents have the listing and the owner may well be advertising too. See below for an example, same advertiser, same property twice.
Obviously airbnb has had an effect on the market as a whole. Fewer properties available for rental means less choice, higher prices and shorter time for the owner on the rental market before finding a tenant. Those 4561 properties are mostly not available for either medium term or long term rental.
However, in today’s article we are looking at the advantages for buyers now that the airbnb craze has been curbed. In Valencia since late 2018 hardly any new licences have been granted for airbnb, just 18 prior to this article in El Pais appearing. The restrictions in Valencia mean that airbnb can only be above commercial premises, that the other apartment or apartments on that floor are also rental apartments, that no more than 50% of a block can be used for short term holiday rentals and that in certain areas the apartments can only be rented out for a maximum of sixty days per year.
What does this mean for you as a buyer of Valencia Property?
The first major advantage is that you now know that your Spanish haven will not run the risk of being above, next to or, even worse, underneath a party flat. You no longer run the risk of somebody deciding to jump on the airbnb bandwagon and spoiling your peace and quiet with tourists above jumping up and down on the bed. (We say peace and quiet but you will hear noises from the neighbour’s tv and their arguments, Spanish walls in apartments are notoriously thin, and remember the neighbours will hear you too.)
You will also have a lot less of that noise that permeates cities now of Ryanair style carry on bags being wheeled through your apartment building at 5am and then down the street due to an early flight back to wherever the tourists have come from because Ryanair keeps such strange flight times from major cities.
Also, you now know that the people living in the building are more likely to be owners or long term tenants who have a vested interest in making sure the building stays up to scratch, so there will be people in those community meetings you have to have and you so love who will definitely be looking out for improvements needed and to make sure noise levels are reduced and authority respected in the building.
You know that if you are buying for medium or long term rental then you will no shortage of supply of potential tenants to choose from, tenants who will respect the property as if it were their own and look after it for you.
As a buyer you may well suddenly find a lot of first floor apartments for sale that have been recently modernised and done well for airbnb rentals. When the owners find out they can no longer get the licence they wanted then they are putting these places up for sale as modernised apartments in Valencia.
In these cases one thing we think is that the neighbours will love you for taking away airbnb into their apartment block. They actually like people in their buildings living there and being a part of the community, whether that is you or the long term tenant you rent the property out to.
And finally, as a buyer of property you have less competition for that property that you want to buy. You are no longer competing against real estate investors looking to get on the airbnb bandwagon. If they know there are no licences likely to be given out then they are less likely to be interested in competing with you on price for a property. Since the new regulations in Valencia came in last year we have noticed a slowing of price rises in the city with properties taking longer to sell too meaning that it is more likely that the property that you have your eye on will be more likely to still be available when you fly over to come and see it.
Remember though you are competing with a lot of other people for properties as over 80% of the market in Valencia is to local buyers, ie Spanish. Some of these buyers may be real estate investors but not a huge proportion. Just under 20% goes to foreign buyers and since the regulations came in the numbers wanting to buy for airbnb have reduced massively.
For all of these reasons we see the curbing of airbnb licences in the city as a huge plus for our clients and all of those who live here. Valencia gets to retain its character, it isn’t swamped by too many tourists like Barcelona, Venice, London and Paris now are and you get more peace of mind when buying your personal Valencia Property Check out the link to look at some of the latest properties on our homepage.
Now if we could only do something about those cruise ships…
And if you liked this take a look at some of our previous posts below. Just click on the images.