The Valencia Property Market Now. November 2024

I really wanted to call this article "The Valencia Property Market now... After erm... That". But then realised that the "THAT" in the title could refer to two things and be confusing for the majority of our readers and that the word "erm" in a title isn't great. So yes, we are referring to the flooding and at the same time of course, the death of hope and loss of sanity in the States and we are looking at what both mean for the Valencia Property market. We took a week and a half out of posting on social media, of promoting good properties and generally of being happy out of respect for the people who lost their lives or their possessions or everything in the floods and for those facing up to losing their rights in the States, but for those who can, life goes on and for others putting together a life that works now is a priority.

(We were also helping out where we could through donations, food deliveries and helping with the clean up)

We did write one article as a response to the political events last week and we put together a podcast as a response to weather events, and the truth is the flood is now also a political event, and you will find them both below (Just click on the images below to read and listen). But today we are going to look at what the Valencia Property market looks like now and going forward due to these events and other factors. It's an important read. As usual I'll admit we could be wrong, time has a way of proving us all wrong in the long run, but this is how we see things as of today.

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Where The Valencia Property Market Stands Currently

In the last year Valencia city has had the highest price rises in Spain with the city's prices rising by 20%! Yes, you read that right. 20%. This is according to Idealista the largest portal in Spain and you can see the full figures here. Prices in the Valencia region have risen by 14.2% on the whole and we compare this with a national rise averaging 9.2%. The only areas coming close to the price rises of 20% in Valencia are in Malaga at 19.8% and Madrid at 18.8%.

Demand continues to be strong and we expect that demand to continue rising as the factors below come into play. Supply continues to diminish and we expect that to continue except in specific areas where things will come onto the market that are essentially unsellable (But some people will buy them, see below about the vultures)

The European Central Bank has again cut interest rates meaning that mortgages are becoming cheaper. As mortgages become cheaper then there is even more incentive to buy property because rental prices continue to rise to record levels everywhere. You can live for a lot less paying off a mortgage and having an asset than you can in a rising rental market. Equally the security of knowing that the amount you pay each month is constant and you are not at risk of being thrown out of your rental and then having to find somewhere comparable at a much higher price or downgrading where you live is a strong incentive to buy with or without a mortgage.

Prices are predicted to rise by almost all "experts" over the next year or two with no end in sight for those price rises so waiting isn't an option for many people and demand remains strong as a result. Some will get priced out of the market as the train moves away if they wait so they will try and get something now.

This is the current situation but things are going to change due to these events and below you can see what we think will happen and why.

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The Effects of the Flood

There will be two main effects on the flood on the market in Valencia:

• Prices will rise
• Prices will fall

Strange? Well this is what I mean. Prices in the area affected by the floods to the south of the city and in the affected towns and villages outside will fall. Some places might fall precipitively as there will be no chance of getting insurance and therefore banks will not mortgage those properties, insurance being a requirement of mortgages.

The towns of Alfafar, Paiporta, Picanya, Catarroja, Benetusser, Alaquas, Aldaia and others, the flatlands where the water and mud hit hardest, will be changed forever. I'm not sure what will happen exactly but the economic effects will be profound. Ground floor properties in the apartment blocks have lost their shops and other businesses and they might not come back. Many didn't have insurance. Town houses have been destroyed. As long as there is no structural damage to the apartment blocks themselves, and it seems that there is little, then you can still continue to live there but the question will be do people want to. There will be mental scarring from this for years, Valencians still talk about the 1957 floods today. The townhouses are more difficult because who wants to live on a ground floor in a flood zone now. Also many of those town houses are now irrecoverable. Prices will inevitably drop.

This is also true of the villages alongside the rivers and Barrancos (Dry river beds) As an example, I went up to Sot de Chera this week to see the damage and see how we could help and this beautiful little town has essentially been destroyed around the river. It lives from weekend and summer tourism. I can't see that coming back any time soon. There's a Gofundme page for the rebuilding of Sot de Chera here. They are going to need a lot more money than that!

The main part of the village is fine but you go there for the river and its riverside walking trails, the hill routes overlooking the river and mountain biking etc. It's a rural tourism haven. That is the economy, nothing more. The river is now a huge scar and the riverside trails have been washed away. There are few places for sale in Sot at the moment and they now look overpriced and I'd suggest unless a lot of money is poured into the area quickly over the years prices will plummet. I think that rural depopulation will quickly come to Sot and areas like it. Like Sot there are plenty of other places bigger and also smaller that will see this effect.

On the other hand I said prices will rise, why's that?

Outside of the affected zone there will be increased and huge demand for property. There already was and now it will increase. There are approximately 200,000 people in the affected area and in the towns and villages by the rivers affected and a good proportion of them may well want to move to other areas. Many will have no choice. The insurance payments for many will mean they have to make a choice of using the money to try and repair and replace or use it to move. Some won't have sufficient in their insurance payments. Many will try to sell up and make the choice to move. But they won't move far. Initially, Valencia city will have even more buying pressure as supply continues to fall. That means only one thing of course, prices rise in the city and local places outside the affected area.

Where are those local places? In the suburbs where there were no direct effects, the well connected places to the north and west of the city along the CV35 for example, demand will increase and prices will rise. This will be both in the short and long term because, as there is little supply in the city and places cannot be found, some people will move there initially. Equally, long term this will happen as supply dries up in the city more quickly and prices rise even more. In these cases some city dwellers will decide to sell up and buy in the suburbs.

To the south west, Torrent is going to be a place where the demand escalates massively and prices go up a lot. Torrent is in the affected area but wasn't touched because it is protected by two huge dry riverbeds which took the water without major issues of flooding, it lies on a hill mostly so water moves away rather than staying around and is slightly higher in general. The people in the areas affected around will look to Torrent to relocate as they will want to be near their children's schools, their families, their work and where they have grown up and lived all of their lives. The majority of Spanish people never usually move far from where they are born and where their extended family live as family ties and the communities that bind Spanish society together are important to them, so non-affected local areas will have the greatest demand. However this may take a bit of time as the metro from Torrent is totally cut off for the foreseeable future and people will still need to get around.

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Valencia Property as a Business

We have made a decision to try and at least alleviate the situation a little. For clients who come to Valencia with under 200k looking to buy in the city we will be saying "Sorry, but no". The lower priced properties in the city, and there are not many, are needed for the local population affected by the flooding. We had already said a few weeks ago that it was like looking for a needle in a haystack anyway and now it will get worse. It's not a case of your money not being good enough for us.

We will be suggesting you buy in the suburbs, in towns where that 200k will get you a lot more for your money but also get you a great lifestyle, where your taxes and presence can have a positive effect both on your life and also the community.

• We will not be working with people looking to buy up cheap properties in the affected areas and then rent them out.
• We will not be working in those areas at all.
• We will not take advantage of people's misfortune.

We have already had enquiries to this effect and have told them to go to hell (I mentioned one in the podcast). There are already vultures in the affected areas going round offering ridiculously low prices on property to desperate people knowing that they will be able to rent them out once cleaned up and make a killing. That's a no from us.

We will continue to work with our clients on finding them their ideal property in and around Valencia but if you have a lower budget and want to be in the city you are competing with people who need these properties much more than you so we won't be helping unfortunately.

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The Effects of the Moron

Four more years of the Orange Sh*tgibbon smearing his faeces all over the rotting corpse of a once great nation will not be great. The Make America Ghastly Again movement has won and they will do what that suggests. Personally I would suggest that this victory for the Convicted Rapist is a Brexit moment for the States. What do I mean by that?

Back in 2016 after the ongoing disaster that is Brexit was voted for, I said that this will mean long term decline for the UK. I said this is like the death by a thousand cuts for the country. As the effects of Brexit get noticed one by one each time something gets worse, a right is taken away, a job is lost or an industry closes due to not having customers abroad, then more and more people will find their own personal last straw and move away if they can.

Unfortunately, I was totally and utterly correct.

The drip drip of people moving to Valencia and Spain and other countries all over Europe and elsewhere because the UK "is a total mess" (That's the reason they give us) has grown year on year especially after Brexit was actually implemented with the disastrous Johnson government of 2019 onwards (Britain's own Albino Sh*tgibbon).

The same will be true of the States now. Conman the Barbarian will provide the US with their own version of Brexit. As tariffs close down US businesses (Because that's what they do), as inflation rises because of tariffs (Because that's what they do), as bans on reproductive freedom come into place in each state, as women suffer MAGAs walking around shouting "Your Body, My Choice", as the Convicted Felon pardons himself and those responsible for an insurrection, as deportations of minorities ensue and people realise that this means them, their friends and family, as vaccines are taken away by that numbskull Kennedy and long forgotten illnesses return, as the full implications of Project 2025 come into play and more and more and more and more things happen, as dipsh*ts like Musk get even more power and wealth and the country is essentially run like Russia with a ruling Oligarchy, there will be a straw that breaks the camel's back for people and they will say "That's it, I'm outta here".

I don't even need to mention the implications for Ukraine, NATO and stability in many other countries around the World or the poor Palestinians as the three time bankrupt business failure nepo baby is funded by the rabid right wing Netanyahu government. A poll came out this week saying that half of Harris' voters want to relocate as a result of the elections and a good proportion of those are looking to move abroad. There was also this article about rich boomers wanting to move.

The mental health implications for people who are referred to by the Tangerine Ignoramus as "the enemy within", in other words everyone decent who didn't support him, will grow and grow, and the only way to protect yourself from Epstein's Best Mate and what he will be doing to the country, and his petty vindictiveness to get back at those he feels have wronged him, might well be to get out and switch off avoid those potential mental health issues totally. Being surrounded by another 4 years plus of the chaos and the 24 hour news cycle he brought last time on steroids isn't good for you. Worrying about the futures of your children if you are not a member of his Oligarchy will also scar you. Decent people don't need that. Leave.

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Latest News From Valencia

• The Madrid-Valencia high speed railway is due to reopen on Wednesday
• The clean up in the affected areas is not even close to being complete
• The protest against Mazón and the regional government on Saturday night had an estimated 130,000 people attending.
• The A7 motorway is also due to reopen this week
• Insurance companies are starting to pay out
• Central government has put help in place of around 60k per household affected to alleviate need
• There are officially 214 deaths and still 41 people missing at the moment

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Moving Forward

Here at Valencia Property we will continue to help out where we can both locally on the ground and to our international clients. To this end we have now started to list properties again and we will be back on our homepage and social media platforms as usual from today, Monday the 11th of November. Life and work goes on despite... everything. It has to. The local economy needs to carry on because if it doesn't then the immediate effects of the flooding get more ingrained and worse and they will become more long term and pervasive.

Keep an eye on our Valencia Property homepage and make sure to contact us with the form below if your last straw via the Commander in Thief* has arrived.

*Didn't mention his name once. I think that's an achievement.