How would you sum up the real estate market in Valencia during 2016?
Continued positive developments and improvement overall in the real estate sector. We expect sales of existing homes to continue to increase by around 15% compared to 2015 in Valencia province and 23% in Valencia city. We expect the year will end with more than 8,000 units being sold in Valencia, surpassing the sales figures for 2007. This will be the third consecutive year of significant increases in sales. Since the fall of 50%, sales prices in Valencia city have continued to recover. During the second half of 2015 they already received by around 2.5% and we expect that by the end of 2016 they will have recovered by around 5% compared to 2015. In the prime areas of Valencia, such as Eixample, the fall of prices from their peak has been lower (42%) and the recovery of prices in these areaa is faster.
How does it compare to 2015?
Both years have been quite similar in behaviour. The most important difference here in Valencia is that in 2016 the prices have started to recover with greater clarity, although the growth is moderate and is strongly influenced by the evolution of the general economic situation.
What are the most notable trends?
Similar to previous years. The main clients are from Central and Northern Europe and the key areas are Eixample and Patacona. We are now beginning to see sales of villas in the area of Monasterios and Santa Barbara/Campolivar. The unusual trend has been the arrival of US buyers as a result of the Trump effect.
Has anything surprised you this year?
This year we made a spectacular sale of a mansion in Calle Cirilo Amoros in Eixample for a figure greater than €1.5 million. Prime properties are now being sold in Valencia.
What have been the main challenges?
Our main challenge is to offer the best service possible to clients, both buyers and sellers. Thanks to the improvements put in place by our IT department and the hard work of our Marketing department, more and more international buyers are seeking our services. Valencia is becoming more attractive every day for international clients who value its style and quality of life. We take care of our sales team who are continuously being trained to satisfy the demands of our clients.
What types of properties are in greatest demand?
International clients prefer a renovated property in a good location and at a reasonable price. Prices vary depending on the exact location and quality of the housing. In the case of the Eixample there are vast fluctuations and property can be sold from €500,000 up to €1.5 million. National buyers prefer spacious properties to renovate and a reasonable price is an important factor for them. At the moment we are noticing an interest in country properties and, in these cases, the important thing is to have an international school nearby and good transport links with the city.
What will the key trends be for 2017 in Valencia?
Regarding re-sale properties, we forecast a continued upward swing, especially now that the uncertain political situation which prevailed during 2016 has come to an end. The return of mortgage credit and low interest rates will continue to fuel this trend. In 2017 we expect to see the first cranes over the Valencia skyline which signifies the return of new residential developments funded mainly by financial institutions and foreign international funds. Lucas Fox Valencia will continue to grow and, in Spring 2017, it will open its second Property Lounge in the area of Patacona beach, one of the favoured destinations for international clients.