Four out of ten property buyers in Valencia City now come from abroad, according to new research by international estate agency Engel & Völkers.
I read about this in the Spanish press, and it wasn’t clear from the article if the results were based on data from multiple sources, or just on Engel & Völers’ in-house data from on their own transactions. I assume the latter, in which case the results reflect the agency’s bias towards upmarket foreign clients, so probably not representative of the overall housing market in the City of Valencia. City-wide figures, if they existed, might tell a different story.
So, assuming the results are based on home sales and rental contracts handled by Engel & Völkers in Valencia City, we learn that, in their market segment, foreign buyers now account for 40% of home purchases in the city, with buyers coming principally from Germany, Italy, the UK, and France.
They also report that average prices have risen 4.6% in the year to date, compared to the end of 2016, though that still leaves average house prices in the city 46% below peak value (I assume that figure comes from a different source). And there were wide price variations between districts, with prices rising 11% in Algirós, 10% in Cuatro Carreres, and 6.5% in Poblat Maritims, but declining 5.8% in the Valencian Eixample.
Demand is strongest around the Ciudad de las Ciencias, Alboraya-Patacona, the Eixample, Old Town Ciutat Vella, and the Pla del Real, where prices start at 3,500 €/m2, and where buyers are looking for large flats with good views, or flats in imposing buildings.
The company reports a shift in demand towards the beach and the area around the old river bed of the Turia.
Rental Demand in Valencia City
Engel & Völkers in Valencia also report a significant increase in rental demand in the city, and a noticeable shift in the makeup of demand from local to foreign clients, led by the French, Americans, Italians, and British. 54% of their rental clients now come from abroad.
Rents have risen between 5% and 10% in sought after districts, though only for homes in good condition.