Last year I did this post about Autumn in the Valencia Property market in 2020. It was really well received and the video was well watched too. This year I’m not sure about putting the time into making a video in the same way but I may do in a few days, what does need repeating is the news about the Valencia Property market in Autumn/Fall 2021 and comparing the situation with last year. Things have changed and things have stayed the same. Read on for more information.
Valencia heads into Autumn in a very stable position regarding Covid. Last year we were worried about when vaccines would arrive that were effective. This year we have over 86% of the population in Valencia over the age of 12 fully vaccinated and the Covid numbers are really low. People continue to care for each other though with masks being required in indoor spaces such as shops, cinemas and inside of restaurants except for when eating. You are beginning to see fewer people wearing masks in the street now but many people still do. Outside events are now allowed at 100% of capacity such as football matches and concerts.
We still take care on visits with masks, hand sanitizer and windows open as far as possible. Just yesterday I stayed outside a property because the owner (Dutch) thought that 4 people was enough and didn’t want 5 inside, go figure!
Now that the majority of countries don’t require quarantine on return from Spain there are more people visiting from all over the World and buying their home or investment property in Valencia.
Third quarter figures show the largest number of sales in the quarter since the mid 2000s and obviously numbers are up massively on last year when we were just coming out of quarantine and the market went mad. People are still looking for that perfect, supposedly Covid proof home.
Brexit and Brits
There is no denying that Brexit is having an effect on the British in Spain but that effect is less marked in Valencia. Anecdotally there are reports from the Costas, especially the Costa del Sol, of Brits leaving in droves as their life has become harder post Brexit. (This is code for those who were living “under the radar” have suddenly become illegal immigrants and have had to go back as they didn’t get their paperwork sorted before the end of the transition period)
In Valencia we haven’t noticed an outflow of Brits at all. Quite the opposite in fact. There are many more Brits now coming into Valencia with budgets over 500k looking for the Spanish Golden Visa. However there are fewer Brits in the 150-200k price range looking to retire here because in the most part they cannot, UK pensions are so poor that they don’t qualify for the non lucrative visa programme. It’s still possible though so read about the requirements here.
There may be relief coming though for many Brits wanting to escape the shortages and deprivations of Plague Island and the idiocracy of the Tory hegemony. The Spanish Government is looking to introduce a new Digital Nomad visa for people from all parts of the World very soon allowing people to live and work in Spain as long as they can prove income, health insurance and ability to not be a burden on the state. We have a long list of clients looking forward to hearing more about this and we will write about this as soon as it becomes law.
Golden Visas and Investments
Golden Visas are being snapped up at a rate not seen since the scheme was introduced powered by an influx of British and American buyers along with many buyers coming from South America. Most of the clients we are seeing for Golden Visa properties are coming with the idea of buying various properties to form a portfolio, one property to live in and then other properties to rent out. This is an extremely good idea currently as there are so few rental properties available in general. The official figures show that rental prices are falling slightly in Valencia but honestly we cannot see that and don’t know where those figures are coming from as all we are seeing is maintaining or increasing prices.
Our clients who have bought places to rent are extremely happy with their returns currently. Good tenants at decent prices on medium and long term rentals. You will notice no mention of Airbnb there. The airbnb market has returned but it is not as strong as pre-pandemic and there is less demand from buyers wanting licences for Airbnb properties as they realise it’s a lot more work for usually smaller rewards.
Popular Property Types
Surprisingly, city apartments are maintaining their popularity with or without terraces! Obviously terraces and large balconies are big selling points but places without an obvious outside space have rebounded in popularity as they tend to be cheaper than places with terraces of course. Terrace apartments get snapped up very quickly, usually at asking price. Apartments with large balconies are next and finally places without outside space but as the market is so strong even these are getting sold quickly and find lots of interest as they come onto the market.
In terms of houses within the city, town houses in the Cabanyal near the beach continue to be like gold dust and hugely popular. We are seeing a move to similar townhouse properties in the satellite towns of Valencia and the closer to the city the better so places like Burjassot and Rocafort are popular and further out there are plenty of townhouses to the North and West of the city with easy access which are getting lots of eyeballs.
We have all heard the mantra in property, “location, location, location” right? It has almost always been the case and continues to be so. Demand for property in areas with traditional demand for property such as Ruzafa/Ensanche, El Cabanyal, El Carmen etc… continues to be high. This is also the case in the outlying towns such as L’Eliana, Rocafort, Betera and more.
However the tendency towards remote working means that there are now more “locations” which are considered desirable because distance from the centre is not as important. As long as local facilities and shops, excellent amenities, fast internet availability and good local schools are there then other places are now coming into the mix. Take a look at our articles here about inland towns that give you a great lifestyle for more information on this.
Mortgage availability is key to many of the buyers in the local market. It’s not so important for many of our buyers from abroad as they have sold up before coming over but many investors in Valencia Property are taking the opportunities offered to them by banks in terms of good cheap mortgages. Just like last year, typically banks are offering terms of 20 years fixed rate around 2-2.5% on mortgages. These rates can be reduced by bonuses for depositing salary in the mortgage account, taking out house insurance and funding utility bills through the account meaning the effective rates are often 1.5% or lower. See our guide to Valencia Mortgages here.
Prices continue to rise but not at unsustainable rates currently. The big surprise post Covid on a worldwide basis is the increasing of asset prices and the property market has formed a big part of that. All over the World prime property prices have been increasing and there is no reason for that to be different in Valencia. Only this week an Italian client from another agency was surprised by their 10% off offer being rejected out of hand by the owner of an apartment in Valencia only for the apartment to receive an offer at asking price the day after from one of the other four people who visited the property in the two days it was for sale. As usual we say if you like it and it’s good other people recognise that and there are currently plenty of people looking for property in Valencia.
With interest rates low, covid rates low, rental returns attractive and plenty of demand in the market things continue to move along smoothly in the Valencia Property market. This could all change at any time of course with a resurgence of Covid, lockdowns, new variants or more but the biggest factor may well turn out to be long term low interest rates that present property as a hedge aganst inflation in the market, inflation which will mean the underlying asset gains in value. However one thing hasn’t really changed, as I said last year…
If Covid has taught us one thing only it is that life is precious and you only have one life so live it well. When you no longer need to cram yourself into a long commute with thousands of others to work from a small cubicle in an expensive city and you only get to live in a small space when you actually manage to get home after an overlong day at the office you hate, then you can start asking yourself the question, where do I actually want to live?
This remains totally true. A new mindset, new working conditions from home and the feeling that what we had previously with commuting, cramped workspaces and bad ventilation just wasn’t allowing people a life is something that has been imprinted in the minds of many people now. They wanted change and Covid brought that change forward for many. It was a horrible way for it to happen but it has changed forever the way we work, the way we communicate and the way we socialise.
It changed the outlook on life for many people and that has changed the outlook for Valencia Property and so many other factors in life. The question remains…
If not now, then when?
Golden Visa Property of The Week
As boss of Valencia Property and a big Liverpool fan this isn’t my favourite property description ever (You can read why). I didn’t write it and Gavin who did is cruising for a revenge post about Wolves. However this villa has been unlucky so far with two clients almost buying it but not quite. Take a look at more here or read the description below then click through for the photos.
“Beautiful villa just 2 minutes from La Eliana town, great for shops, schools and metro, but also fast access to the motorway, 15 minutes to the airport, 20 to the city and 25 to the beach.
We’ve already shown this house a couple of times, there’s been a lot of interest, but it hasn’t quite made it over the line yet and its hard to know why. Some houses barely make it to the market and are snapped up. We call these Jack Rodwells (109 minutes for Man City was enough to win him a Premier League medal in 13/14).
A house like this one here is more of a Steven Gerrard (this is too painful for some of our loyal readers, so I won’t explain it). But enough to say it looks great, turns out it is great, it seems it must be the winner but at the last moment just misses out.
Anyway, check out the photos. It has light, space, classic features, a pretty but quite manageable outdoor pool and garden area, it’s in an excellent location.
So keep your eye on the ball, don’t slip up and allow someone else in to take the easiest of chances and snatch this from you in the most publicly humiliating fashion imaginable…..
Sorry. What I’m trying to say is don’t let this house be another Steven Gerrard, it deserves better, give us a call.”
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If you liked this post just click on the images below to read more about Valencia and Valencia Property. And if you liked the above description then click through here to read more fantastic and unusual property descriptions.