Lucas Fox Spanish Real Estate Market Analysis Q1-Q3 2019: Costa Blanca & Valencia

It has been a fairly turbulent few months politically for Spain and the recent elections were once again inconclusive with no overall majority for Pedro Sánchez and his socialist party (PSOE). However they have reached a preliminary coalition deal with the anti-austerity Podemos party to try to form a government. This should bring greater stability to the country, which is good news for the country’s property market.

Read our full analysis of Spain’s property market here

Valencia Province

Volume of Sales – Valencia Province

Compared to the second quarter of 2014, the number of transactions in Valencia Province in the second quarter of 2019 has risen from 4,902 to 8,951, an increase of just over 82%. However, the number of sales is still 36% below the second quarter of 2007 (13,914 sales), around the peak of Spanish sales transactions. (Ministry of Development, Spain)

Year-on-year the number of sales transactions decreased by 7% in the second quarter of 2019. However, when compared to the first quarter of 2019 sales have risen by just over 11%. (Ministry of Development, Spain)

New Homes Sales – Valencia Province

Sales of new homes in Valencia Province represented 6% of the total number of sales in the second quarter of 2019, a higher proportion as in the second quarter of 2018 (3%). The proportion has reduced significantly since the second quarter of 2007 when 42% of the total sales were for new homes. (Ministry of Development, Spain).

Value of Sales – Valencia Province

The total value of sales transactions in Valencia Province in the second quarter of 2019 rose by 18% when compared to the first quarter of the year. However, the total value was almost the same as the amount of trading in the same period in 2018. Compared to the second quarter of 2014 the total value of sales transactions has risen by 74% but it is still 48% below that of the same quarter of 2007. (Ministry of Development, Spain)

Valencia City

Volume of Sales – Valencia City

The number of sales transactions in Valencia City in the second quarter of 2019 (2,807 sales) decreased by 13% compared to the same quarter in 2018 (3,216 sales). However, sales have increased by 11% when compared to the first quarter of 2019 (2,541 sales). Compared to the second quarter of 2014 (1,588 sales) the number of transactions has risen by almost 77% but is still 11% below the second quarter of 2007 (3,153 sales). (Ministry of Development, Spain)

New Homes Sales – Valencia City

The number of sales transactions of new homes in Valencia City in the second quarter of 2019 (258 sales) increased by over one and a half times compared to the same quarter in 2018 (152 sales) and is up by 83% when compared to the first quarter of the year (141 sales). Compared to the second quarter of 2014 (117 sales) the number of sales of new homes has more than doubled but it is still 69% below the second quarter of 2007 (844 sales). (Ministry of Development, Spain)

Proportionally, new homes sales in Valencia City represented 9% of the total number of sales in the second quarter of 2019, up from the second quarter of 2018 when sales of new homes represented just 2% of the total number of sales. The proportion has reduced significantly since the second quarter of 2007 when 27% of the total sales were for new homes. (Ministry of Development, Spain)

Average Sales Prices – Valencia City

Average property prices in Valencia City went up year-on-year, registering an annual increase of 6% in September 2019 and ending the month on €1,767 per square metre. Average prices in the Old Town and L’Eixample also increased, ending the month on €2,781 per square metre (2.2% increase) and €3,000 per square metre (4.7% increase) respectively. Prices in the desirable La Patacona area averaged at €3,229 per square metre, registering an annual increase of 7.5%. The district of L’Eixample has seen the greatest gains with regards to prices since September 2014, increasing by 47%. Prices in La Patacona have risen by 33% and the Old Town by more than 27%. The city as a whole has seen prices go up by just over 33% in the five years to September 2019. (Idealista, resale prices)

Average Rental Prices – Valencia City

Average rental prices in Valencia City showed an annual increase of 8.7% in September 2019, ending the month on €9.1 per square metre. Average rental prices in the Old Town and L’Eixample also went up, ending the month on €11.1 per square metre (4.6% increase) and €10.3 per square metre (3% increase) respectively. (Idealista)

Puçol

Volume of Sales – Puçol

The number of transactions Puçol (71 sales) in the second quarter of 2019 decreased by 4% compared to the same quarter in 2018 (74 sales). However, they increased in the second quarter by 16% when compared to the first quarter of the year (61 sales). Compared to the second quarter of 2014 (40 sales) the number of transactions has risen by 76% but it is still 47% below the number of sales around the peak in the second quarter of 2007 (135 sales). (Ministry of Development, Spain)

Average Sales Prices – Puçol

Average property prices in Puçol have remained steady over the last year, ending September 2019 €1,310 per square metre. (Idealista, resale property prices)

Average Rental Prices – Puçol

Average rental prices in Puçol showed an annual increase of 11.6% in September 2019, ending the month on €6.5 per square metre. (Idealista)

Alicante Province

Volume of Sales – Alicante Province

Compared to the second quarter of 2014 the number of transactions in Alicante Province in the second quarter of 2019 has risen from 7,782 to 11,736, an increase of almost 51%. However, the number of sales is still only 32% below the second quarter of 2007 (17,228 sales), around the peak of Spanish sales transactions. (Ministry of Development, Spain)

Year-on-year the number of sales transactions decreased by 4% in the second quarter of 2019. However, when compared to the first quarter of 2019 sales have risen by nearly 15%. (Ministry of Development, Spain)

New Homes Sales – Alicante Province

Sales of new homes in Alicante Province represented 14% of the total number of sales in the second quarter of 2019, a higher proportion than in the second quarter of 2018 (11%). The proportion has reduced significantly since the second quarter of 2007 when 47% of the total sales were for new homes. (Ministry of Development, Spain).

Value of Sales – Alicante Province

The total value of sales transactions in Alicante Province in the second quarter of 2019 was similar to the amount of trading in the same period in 2018. Compared to the second quarter of 2014 the total value of sales transactions has increased by 70% but it is still 42% below that of the same quarter of 2007. (Ministry of Development, Spain)

Alicante City

Volume of Sales – Alicante City

The number of sales transactions in Alicante City in the second quarter of 2019 (1,769 sales) decreased by 10% compared to the same quarter in 2018 (1,958 sales). However, sales have increased by 6% when compared to the first quarter of 2019 (1.672 sales). Compared to the second quarter of 2014 (985 sales) the number of transactions has risen by 80% but is still 24% below the second quarter of 2007 (2,328 sales). (Ministry of Development, Spain)

New Homes Sales – Alicante City

Sales of new homes in Alicante City represented 9% of the total number of sales in the second quarter of 2019, a slightly smaller proportion than in the second quarter of 2018 (10%). The proportion is notably less than in the second quarter of 2007 when 37% of the total sales were for new homes. (Ministry of Development, Spain)

Average Sales Prices – Alicante City

Average property prices in Alicante City showed an annual increase of 2.8% in September 2019, ending the month on €1,491 per square metre. Property prices in the city have gone up by nearly 19% in the five years to September 2019. (Idealista, resale property prices)

Average Rental Prices – Alicante City

Average rental prices in Alicante City showed an annual increase of 6.6% in September 2019, ending the month on €7.6 per square metre. (Idealista)

Dénia

Volume of Sales – Dénia

The number of transactions in Dénia (380 sales) in the second quarter of 2019 decreased by 16% compared to the same quarter in 2018 (453 sales). However, they increased in the second quarter by the same figure when compared to the first quarter of the year (327 sales). Compared to the second quarter of 2014 (322 sales) the number of transactions has risen by 18% but it is still 63% below the number of sales around the peak in the second quarter of 2007 (1,018 sales). (Ministry of Development, Spain)

New Homes sales – Dénia

Sales of new homes in Dénia represented 5% of the total number of sales in the second quarter of 2019, a higher proportion than in the second quarter of 2018 (2%). The proportion is still notably less than in the second quarter of 2007 when 54% of the total sales were for new homes. (Ministry of Development, Spain)

Average Sales Prices – Dénia

Average property prices in Dénia showed an annual increase of 5.1% in September 2019, ending the month on €1,988 per square metre. Since September 2014 prices in Dénia are up by more than 21%. (Idealista, resale property prices)

See graph above in Alicante City

Average Rental Prices – Dénia

Average rental prices in Dénia showed an annual decrease of 0.4% in September 2019, ending the month on €7.7 per square metre. (Idealista)

Tourism & Foreign Buyers, Costa Blanca & Valencia

The number of passengers arriving at Valencia airport in the first nine months of 2019 was just over 6.5 million, an annual increase of 11% over passenger arrivals in the same period in 2018. (Aena)

International tourism in the Valencian Community in the first eight months of 2019 increased by almost 4% over the same period in 2018. The region hosted just over 6.6 million international tourists during this period. (INE)

Foreign buyers in Valencia Province accounted for 11% of the total sales in the second quarter of 2019, a slightly higher proportion to the second quarter of 2018 (10%), and significantly higher than the proportion in 2012 when they accounted for almost 4% of all buyers. (Spanish Land Registry)

Foreign buyers in Alicante Province accounted for 42% of the total sales in the second quarter of 2019, a slightly higher proportion to the second quarter of 2018 (41%), and higher than the proportion in 2012 when they accounted for almost 33% of all buyers. The province has the highest proportion of foreign buyers out of all Spanish provinces. (Spanish Land Registry)

Lucas Fox Valencia Buyer Profile

Lucas Fox Dénia Buyer Profile

Note the following figures are provisional:

• INE (Tourism) (from January 2019)
• Ministry of Development, Spain (from Q2 2019)

View Lucas Fox Spanish Real Estate Market Analysis Q1-Q3 2019: Spain

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