Valencia new Spanish hotspot for 2018 due to soaring sales figures

Home sales and rentals in the vibrant and historical city of Valencia are on the rise, increasing by 86% and 59% respectively in just 12 months.

According to Lucas Fox Valencia, demand for homes in the third-largest city in Spain is at an all-time high, sparking a surge in luxury developments set to appear over the next two years. Data from the Spanish Institute of Statistics (INE) shows that the number of homes sold in 2017 averaged at averaging 2,226 per month, with the average price of a home sold in 2017 just over €461,000.

The (SOMETHING) of the eastern-coast city is proving popular overseas, as of the transactions in the past year, 40% of transactions were to international buyers, up from 33% in 2016. The majority came from France, the United Kingdom and the United States.

A third of Lucas Fox buyers purchased property as a main home and a third purchased as a secondary residence, with the remainder buying for either investment or relocation purposes. IN light of the rise in demand, Lucas Fox recently opened a new Property Lounge in Calle de Mar in the heart of Valencia Old Town, the company’s third base in the city.

“The property recovery in Valencia has really taken hold in the last two to three years,” comments Lucas Fox Valencia Partner Juan Luis Herrero. “Since summer 2014, the number of transactions and prices have been rising steadily and there is now a lot of movement in the market. This has contributed to greater interest from foreign buyers, which has more than doubled since 2011.”

Sales of new homes in Valencia Province increased by 6% in 2017 compared to 2016, according to INE, making up 13% of total sales. In Barcelona Province, new home sales rose by 19% and in the Community of Madrid by 18% but Mr Herrero believes 2018 could be a pivotal year for this market.

“In previous boom years around 3,000 new homes were being sold every year in Valencia city but last year this figure was only just over 400. Now Valencia Town Hall is granting licences for the construction of 1,500 new homes and the initial projects are selling well thanks to their competitive pricing and this will further spur on more projects.”