Every year around this time after the summer has started to recede into the background we do a bit of a market report to let you know what's happening in terms of market moves, prices and supply and demand. Of course this year is no different, except for the fact that it's still essentially summer with temperatures around 30 degrees during the day, so get ready to be stat packed with the latest news from the Valencia Property Market in Autumn 2023.
Now those of you who are avid podcast listeners might have heard a lot of this information in the podcast that we released on Friday (Along with news about why I am still not in prison, the problems of renting and more) but for those of you who prefer reading your information rather than listening to me talking about things then here it is. Read on.
How We Compile the Report
Suffice to say that we are not taking the stats from the whole market. We are using our own stats which you may or may not consider to be a representative sample. They do however reflect the type of clients we get and they are people like you. This is what people like you are buying and looking for. We look at our completed sales, our client funnel and property information requests and come up with the report which is also extremely useful for us.
The Americans have returned to the top of the charts this year as our number one nationality with 40% of sales being completed to American clients so far. Second we have the Brits making a bit of a comeback with 22% of sales being to Brits. There's then a scramble for third place but Belgium is just about winning that battle with 8% ahead of the Netherlands, Canada and South Africa.
So far this year we have had clients from 17 countries and four continents buying property through Valencia Property which just goes to show the international appeal of Valencia and also of our website. It's also totally coincidental as last year we sold to 17 different nationalities too, just this year some of those nationalities are different.
The price of the properties we have sold this year so far has gone up by 22% compared with 2022. However, as I have explained before this doesn't mean that prices have risen by 22%. That is because we are being more successful with clients at the higher price levels and getting more clients in those price ranges as we are targetting Golden Visa purchasers and higher end clients as our reputation grows and we get offered more of this type of property.
In terms of the splits in price ranges 16% of our sales were over 500k, 34% were under 200k and 50% were in the 200-500k range. For us this is good news as we are not relying on one sector of the market. However as I said on the podcast, if you want to skew those figures by coming over and buying a few multi million euro Castles, Villas, Masias and high end Penthouses we are not going to complain.
Types of Property
74% apartments and 26% villas and townhouses. However let's take a closer look. Of the villas and townhouses 50% are villas and 50% we consider to be townhouses. However that includes some sales of townhouses in the city, typical Cabanyal houses. Last year we were on 80% apartments so the numbers of houses and townhouses bought is rising as a percentage of total sales but not massively. But the townhouse percentage is rising as people discover the attractions of living with more space and facilities to hand just like in an apartment.
Of the apartment sales the vast majority are in the city of Valencia itself. but almost 20% now are for apartments in the towns and villages around the city and down the coast which is a considerable rise in terms of percentage numbers compared with last year.
60% of our sales are in Valencia city itself which is a large drop compared with 80% last year. Of course this means that 40% are for properties outside the city, a big rise, meaning we are going further afield to find properties for our clients. Of the 60% in the city sales were dominated by a couple of areas, Ensanche and the Cabanyal but the area to the north of the riverbed outside the traditionally popular areas and Patraix, Arrancapins and la Petxina to the west of the centre are becoming more popular too.
This year there has been a slight decrease in the numbers of clients getting a mortgage to pay for the property they buy. In fact I think the numbers have reverted to the mean of a few years ago after the rise we found towards the end of last year. Our clients traditionally don't get finance to buy having sold their properties in their home country as they are moving here lock, stock and barrel but those who do are usually getting finance to buy investment properties and perhaps the drop in these numbers is due to people not wanting to pay higher interest rates on their property and be locked into those higher rates. This has been more than offset by the huge rise in rental prices though this year, 26%, so it's a surprise that we are seeing fewer mortgages.
Why Are People Buying?
People are moving to Valencia to upgrade their lifestyle. Over 80% of our sales were to people buying for their primary residence. Only 18% of our sales were for investment purposes. We like that figure. We want people buying to live here who contribute to the local economy by buying things in the shops, using the cafes and restaurants regularly and inviting friends and family here to spend their money too. It's good for Valencia to have direct foreign investment coming in.
Our client funnel is looking healthy and the post summer lull enquiries have been huge. This was especially noticeable this year as we had a major problem on the website with the forms not working well for a time so we are not aware of how many clients we may have missed over the summer. If you were one of them then we are sorry you didn't get a reply but we didn't notice the issue.
In the last week we have seen an uptick in enquiry numbers of over 100% compared with the previous weeks which is rather good and a good sign after the changes to the website we made two weeks ago. It could be because the forms and ways to contact us are now much more visible.
If you want to join them then just fill in the form on the following page. Just click on the image to read the article and fill in the form.
Pull Factors of the Valencia Property Market
Why is there all of this demand?
Well, we asked our clients what brings them to Valencia and the reasons are largely lifestyle related but with the Americans there is a huge elephant in the room, safety. One of the main reasons Americans are buying in Valencia is because they believe their country has taken a wrong turn especially with the Orange Sh*tgibbon and the fear that he could return and then the Magas will be emboldened even more is real. Also the fear of being in the wrong place at the wrong time and becoming another statistic in the huge number of gun deaths is also real. Protecting their family from this is paramount in their minds. This is a push factor though, pushing them away from the States.
"Pull factors that are creating this strong demand for living in Valencia according to our clients are lifestyle, affordability, climate, culture, social factors, family, location and community."
Equally, now that Valencia is firmly on the map for the digital nomad lifestyle and that the Digital Nomad Visa is being taken up by so many people, we are seeing that remote workers are coming here in greater numbers and they are taking that name, "Remote Workers" rather than digital nomads because their idea is to stay here long term, not just be here for a few months then move on.
We will continue to see more pull factors bringing people into Valencia as job opportunities increase here through new battery gigafactories, car production plants and even the possibility of the huge attraction that is being a part of the World Cup in 2030 and as Valencia continues to get great publicity as a fantastic place to live and work. As the World gets smaller, places that offer a great lifestyle in a safe and secure environment with an emphasis on community and easy living will become more popular. That's Valencia for you.
Property of the Week
Paul's in inspired description form at the moment, mainly due to his knowledge of how Saints died in grisly circumstances, so when you buy this you can find out more about those Saints at the local church across the road. As he says, you'll never be late for Mass. (He also has a moan at those who are copying our content. Give credit peeps)
"Just the other day I went to view this property with our Project-manager Maria and as we were leaving, she said “Please find somebody to buy this.” Why? Well, this property is a renovator’s dream. But first let’s talk about the location:
Main square (Ayuntamiento) – 290m
Central Market – 550m
Est. del Norte train station – 350m
Any more central and you would be sleeping on the mayors fold out sofa. Views of the church of Saint Augustine (killed by the marauding Vandals), a balcony overlooking Saint Vincent the Martyr’s Street (tortured to death in prison) the entrance to the building is on a pedestrian thoroughfare named after the erotic poet Baldovi (died peacefully at a good age and still managed to get a street named after him, clever lad).
As for the apartment itself? 200M at this price in central Valencia obviously means a lot of work is needed so this is not for the faint hearted, but as you read above our PM Maria and her crew are dying to get a go at this. The layout means the only limit is your imagination ( and maybe your wallet). No long corridors that you can’t do anything with and plenty space to move around the plumbing and whatnot to allow you to decide exactly how you want your ideal Valencian home to look. Garage optional for another 40k too which is very close to the Golden Visa threshold.
If you are reading this having already studied the market, you’ll probably know that properties are flying and prices increasing. This is a solid property that with a bit of TLC will be worth a hell of a lot more so give us a shout and we’ll get your visit arranged.
On a side note, we’ve recently discovered that other agencies who obviously lack VALENCIA PROPERTY’S talents in the listings game have been not only been ripping the photos we use but also copying & pasting our descriptions and not even trying to add any original content of their own to them! We at VALENCIA PROPERTY would never dream of being so brazen. All our descriptions are 100% VP brain muscle guaranteed."
And That Podcast
Well, here it is for you. In which we talk about these numbers but also look at various other things that are happening at the moment including the rental market and more.
And if you liked this...
Then feel free to click through on the images to other similar articles and read more about what we are doing here in Valencia and what's happening here.