This confirms the growing demand due to the improvement in the economy, favourable financing conditions, high yields on offer and renewed activity on the part of developers in new housing projects.
These factors have shaped a positive scenario for the real estate sector which, in 2017, will consolidate its recovery and continue its upward trend with new building work and office renovation as the main incentives. This is one of the conclusions of the market report Valencia 2017 produced by Engel & Völkers.
Strong contrasts between districts
Valencia offers very attractive prices compared to property assets in other large cities. However, there is a huge difference between the different areas of the city, as with year to year variations recorded during the past year.
For example, increases of 11% and 10% were experienced in Algirós and Cuatro Carreres, respectively, or the rise of 6.5% recorded in the last trimester of 2016 in Poblats Maritims in contrast to the decrease in prices of 5.8% registered at the end of the year in Eixample.
In this way, the Ciudad de las Ciencias and the zone Alboraya-Patacona are the most prime zones of the city, next to the downtown areas of Eixample, Ciutat Vella and Pla del Real, areas where prices have reached more than 3,500 euros/m2 and where there is a demand for spacious floors with views, or in classical buildings.
In respect to the buyer profile, the strong increase in the number of international clients in the last year is of note, involved in 40% of transactions. The main nationalities of people from abroad investing in Valencia are Germans, Italians, British and French.
Rentals take off strongly
After the 4% increase in prices registered last year, the boom in the rental market in Valencia is leading to an even greater increase for 2017, which could end up in the region of between 5% and 10%. An increase which will be unequal among the districts and will not be felt in homes which have not been updated.
The nationalities of the profiles of those renting in the city have changed dramatically during the last year. From a market profile mainly national in character, people from abroad have now carried out 54% of transactions, led by the French, Americans, Italians and British.