2019 in Valencia Property has been very interesting. Unlike last year we are not going to say we doubled sales because we didn’t. Coming into the last two weeks of the year it looks like we are on course to maintain the number of sales from last year or maybe just beat it by one or two depending on this week.
Sales of Valencia Property in 2019
Our sales of Valencia Property in 2019 have been driven by the following factors. (Some of them are very similar to last year)
- An uptick in the numbers of British citizens wanting to Escape Brexit.
- A decrease in the numbers of buyers looking for short term rental opportunities due to restrictions on Airbnb in the city.
- Recommendations from friends and family of previous buyers who wanted to join them in Valencia.
- An increase in our international reach.
- Better communications and contacts with our collaborating partner agencies both here and in the rest of the World.
- New agreements with companies bringing clients to Valencia.
- An increase in sales outside the city with Naquera and La Eliana being particularly popular.
Our international spread of clients has been as diverse as last year. There has been an increase of UK clients from a low of 15% last year up to 27% this year. This reflects the fact that far from Getting Brexit Done, the ongoing death by a million cuts in the UK is making people just want to leave it behind and get out. Dutch and Belgian clients also account for 27% of sales this year down from 38% last year which reflects the declining sales due to the Airbnb restrictions. Our next largest markets were Spain, Canada and the USA and there were also sales to clients from Austria, Sweden, Israel, Bulgaria, India, Germany, South Africa, Switzerland and Hungary.
The increase in the UK market was also down to a few other factors
- The slight increase in the value of the Pound in the later part of the year.
- British clients already resident in Valencia deciding to buy rather than rent as rental prices moved markedly higher.
- People wanting to get out of the (And here I quote) “The constant sh*tshow that the UK has been since 2016“.
- People looking for a better future for their children outside the UK.
The City, The Suburbs or the Countryside of Valencia.
In 2019 our sales of Valencia Property were still largely city based. As one of our clients said, “As soon as I stepped out of the taxi in the centre of Valencia and looked around I was in no doubt this was the place for me.”
This year 67% of sales were in the city of Valencia itself and 33% outside the city. This is not too different from last year and accurately reflects the numbers of requests we are getting on a day to day basis for more information about Valencia Property. What conclusions, however tentative, can we derive from these figures?
- There is a continued drive towards locations outside of the city to get more space for families coming into Valencia.
- The city itself continues to attract younger people and those looking to retire without the need for their own transport to get around.
- Investors still see the city as the best place to buy to let but their purchases are more geared towards long and medium term rentals rather than the short term Airbnb market.
- Areas such as Malilla, La Zaidia and Monteolivete are now up and coming areas for international buyers. Cabanyal and Ruzafa remain strong contenders for buyers with more purchasing power. (See all about other areas of Valencia here)
- Outside the city Naquera is proving to be the most popular area with both villa and apartment purchases being done. (See why we love Naquera here) La Eliana is popular too with all the sales there being of villas with pools within striking distance of the town centre. (See why we like La Eliana here)
Prices of Valencia Property in 2019
Our average sale price of Valencia Property in 2019 was almost exactly the same as average sale prices in 2018 (give or take 1% either way depending on a couple of potential purchases this week). This is despite the continuing rise in property prices in 2018 which amounted to around 10% in the city according to official figures (If they can be relied on).
Of course this means we had a similar mix of purchases this year from buy to rent opportunities which were largely concentrated in suburban Valencia and Naquera, to high end city apartments in the most in demand areas of Valencia to excellent family villas largely in La Eliana.
The average price of villas sold this year was similar to 2018 rising by just 2%, however if we take away the outliers of the lowest and highest price then the rise was around 8%. Average prices for apartments in the city to our buyers went up again by a very small degree but again if we take away the outliers then there was a rise of around 4%.
What this tells us is that we continue to find great deals for our clients even in a market that is rising. It also tells us that we have ideal price points for our clients where the majority of them find their ideal property. If we look at the median price points then villa sales are around 280k, apartments in the city around 170k and apartments outside the city at 110k (These are mostly concentrated in Naquera where both apartments and villas are priced well). Nevertheless the outliers mean that we have sold villas from 80k, apartments in the city from 38k and apartment outside the city from 46k. These bargains are about as common as hen’s teeth now but at times we get them, they move fast though.
What was the best value Valencia Property we sold in 2019?
Just like last year this is a difficult choice, it’s sort of like choosing your favourite child for an estate agent as we only sell what we think is good value and will work for our clients. However, sometimes good value becomes great value and of course the best property is different to the best client/property/price match. Some people say that the best property should always be the most expensive whereas we believe the best client/property/price match, which is sometimes the cheapest and even ugliest looking one, is the best. We are looking here at best match not just best looking or highest price.
In my opinion, humble or not, the best investment property sale this year went to Conrad and Michelle I think who bought a couple of excellent apartments in Naquera for which they get a good rental return and we get some very happy tenants. Congratulations on those purchases.
Our best apartment sale went to Inés one of our Spanish clients who bought an apartment in the Cabanyal which suited her down to the ground and which was totally key ready.
Our best villa purchase has to go to Kendra and Jonathan for a superb location which once modernised will be an amazing place with views to die for in Serra. That much property for that little money in such a superb location is the real no brainer.
2020 in Valencia Property?
Obviously we don’t have 20/20 vision (hahaha) to the future but we were more or less spot on with predictions last year apart from the fact that Brexit didn’t either happen or not happen. So with an Alice Through the Looking Glass type of view here is what we are looking at for 2020.
We expect to make a lot more sales to South African clients and Americans looking for the Golden Visa for living in Spain. This is due to ongoing projects which will start coming to fruition next year.
We expect prices to level off somewhat in the city due to the ongoing effects of the airbnb situation and the new builds that are going up increasing supply somewhat. The situation for mortgages is still positive with continuing low interest rates and excellent long term fixed rate deals available from our mortgage partners meaning that those new builds should sell well.
The B word! (Now updated by putting screaming howls of anguish on loop in the background after the 12th of December and the UK elections.) As expected the clown Johnson got his majority to Get Brexit Done (That’s a lie by the way, it will be far from done), then we expect to see an upturn in UK citizens wanting to get out of the country before it happens with the higher exchange rate and also before the pound drops like a stone as it is likely to do after the actual Brexit date when the disaster starts to unfold. If you are worried as a UK citizen about the exchange rate dropping in the future but you are definitely going to buy here then contact Currencies Direct and fix your rate. Ask them how. This will protect you from the long, cold winter of Brexit. If you are worried about your right to live here as a British citizen then you will be able to still (just like Americans, Australians etc… can) but you will need to tick a few extra boxes including savings, private health insurance and whatever else is demanded in the final withdrawal agreement. We expect the British to be considered in the same way as other non EU citizens in that for an investment over 500k you will get the Golden Visa.
Some of the latest properties to be featured on the site can be found in this video below. Make sure to scroll further down to see how to contact us and also to read more about Valencia Property.
And finally, a copy and paste from last year…
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