Since I came to Valencia, and it is only a year, I’ve seen a huge shift in the property market. Terrorist attacks throughout Europe and North Africa resulted in a huge increase of tourist arrivals, especially in 2016 and 2017. In those two years market started changing. It was driven by the renewed interest of foreign buyers, this time not only British but German, French and Italian too. Reoccurring problems with the Independence movement in Catalunya, availability of mortgages with Spanish banks and a growing economy, resulted in renewed interest in properties, old and new. And not only by your every day’s buyer: young couples or foreigners looking for a second home.
There are now much bigger forces in play, that you can’t see – huge investment funds, European and American. Working in the background they are picking up every day big chunks of urban land for development. They are also buying blocks of flats or old buildings in need of renovation. Add to this couple of new developments in Valencia, initiated either by the local government or European funds, like a rejuvenation of Cabanyal, huge Central Park development, to name a few. That all hugely influenced the market.
All in all, this has set Valencia property prices on a path of a huge growth in years to come. Yes, there can always be another bubble on its way that we don’t know about, but at the moment this is highly unlikely.
As it always happens, the prices started recovering from their historic lows selectively. The same way they fell in 2008 and 2009, first on the outskirts and only later in the most desired areas, they are coming up, in completely reversed process. At the moment, the center of Valencia and couple of adjoining barrios is experiencing the highest increases in prices. It is happening in Cabanyal too, but only thanks to the current trend. The further you move from the center of town the cheaper it gets. The prices there are still depressed. We can see little change in beach areas, around Valencia. Here, you can sense the boom only by the fact that although the prices are still low and unchanged, the properties are selling faster.
At one stage property prices in Valencia were, as the experts claim, 40% down from their heights in 2008. At the moment, the same experts claim, they are 24% lower. So there is still some time to buy. Judging by the interest of buyers and growth of local estate agencies, that time is running shorter and shorter.