We are living in strange times as you know. Covid19 continues to dominate everyone’s waking thoughts and many places are being placed into further restrictions and local lockdowns.
Valencia currently has very low transmission rates of Covid and there are no restrictions in place at the moment. There are hyper local breakouts of the infection which are generally tracked and traced quickly. Because of this life goes on pretty much normally here except that everybody, and I mean everybody, wears a mask and when you walk into a shop or public enclosed space there is hand sanitiser available.
This has a knock on effect on the property market of course as most people still think the second wave that is hitting elsewhere will get here too eventually in the same way, it probably will, and they continue to look for a place to live that suits their requirements in terms of living space, outside space and connectivity.
We had various enquiries from clients on Friday and Saturday for different properties and on phoning the owners we found that for three clients wanting to visit today, Monday, ALL OF THE PROPERTIES WERE SOLD!
Friday was a busy day in “Leaving a deposit land“.
Two properties in Naquera at 200k and 280k had been sold at asking price and an apartment in the city near the beach was sold for modernisation, we believe for close to asking price. (All of the below now sold)
We also received lots of enquiries last week, almost 200% higher than the previous week and this is still taking into account that in certain countries like the Netherlands and UK the governments are still advising against travel to Spain and requiring quarantine on returning to the country meaning that for many foreign buyers it is nigh on impossible to come and visit at the moment to look for property. We even have an American client whose passport won’t even let them into Mexico or Canada at the moment so they have no hope of getting to Valencia any time soon.
As a result of this we continue to offer our virtual tour services, virtual visits through Facetime or Skype calls, consultation calls and more to make our service to our foreign based clients much more rounded. See more about these at the links provided.
Will This Continue?
The Spanish government continues to prop up the economy by paying furlough payments to companies and encouraging working from home. A new law was brought out this week to allow employees to request permanent working from home but employers cannot demand it. Things are changing. We expect to see steady internal Spanish demand for more suitable properties for home working and studying for the near future.
Banks continue to lend and interest rates remain low. Until these circumstances change then the local market is likely to remain resilient. Once international demand picks up then this increases aggregate demand too but bear in mind that in Valencia international buyers only account for less than 20% of the property market so it’s not a huge difference. Obviously at the end of this year British buyers no longer have the right to live and work here so the extra demand from Brits currently desperate to get in may well dissipate. The truth is most of that demand is for six month rentals to get residency at the moment and British buyers make up around 16% of that under 20% foreign demand so a total of less than 4% of the total market in and around Valencia at the best of times.
When the government support ends then we expect to see more bargains come onto the market as people need to sell and others can no longer buy as they would not be able to fulfil the affordability criteria demanded by the banks. Those who need to sell might well take offers on their property or drop the price. Anecdotally we are seeing the odd case of this happening already but it is not yet a trend.
So what about that question everyone always asks us first; How’s the market looking at the moment?
I refer you to the article I wrote in September here. It’s buoyant still and resisting any pressure as people move around to find their perfect property or at least a more suitable property for them. As soon as it changes we will let you know.
If you have any specific questions then contact us via mail or whatsapp on the link here in the blog. And to read more similar articles and more about Valencia just click on the images below.