For those of you who listen to our podcast you got a preview of this post last week where we talked about what has been happening here in the last year and the perspectives for 2023. Give it a listen if you haven't, you might like it (And remember to subscribe to get future episodes) For those who prefer reading it's time to give a full review of the Valencia Property Market in 2022 and what it may look like next year. Within this post we will also be giving another shout out for our end of year competition, looking at some of the current properties for sale and asking if we go too far at times with our descriptions.
What Did People Buy in 2022? - The Overview
Every year we put out a report of what people like you are buying in Valencia. You can read the report for 2021 here. This year is no different but we have even more to work on because as an agency we have had more than double the number of sales this year than we did in 2021. Remember that 2021 was a very good year as we doubled our sales of the previous interrupted Covid lockdown year and even increased sales on 2019 which was also a very good year.
The average sales price has gone down by 8% compared to last year mostly due to investors buying properties to rent out which brings the average down as they buy lower price properties to get a better percentage return. Those buying for their own use tended to pay more than those investors of course.
The number one market for us this year has been the Dutch market with 29% of our sales being made to clients from the Netherlands, second are last year's winner the USA with 21% of our sales being made to US clients. A late surge has placed the UK on the heels of the States with 18% of our sales being made to the UK market and then bringing up the rear of the top 5 are Ireland and Belgium with 5% each.
Why were the Dutch the top nation this year? There was a change in the tax rules for second properties in the Netherlands making it almost prohibitive to buy a second property in the country whereas that tax change didn't apply to properties bought outside of the Netherlands. Equally, many people have been told by their employers that it doesn't matter where they work from and that led to a huge increase of enquiries from the Dutch market.
We have successfully found properties for international clients from 17 countries this year and if we include rentals then we take that number of nationalities to over 20. We love the international nature of our clients of course. The cheapest thing we have sold this year was a storeroom for 15k to make up a Golden Visa for a client, but the cheapest property purchase to live in or rent out was 72000 Euros. This was a rental flat which is giving a 7% return with a sitting tenant in a town just outside of Valencia. We'll keep the secret of the most expensive property sold this year, suffice to say that it wasn't as high as last year but it was sold to a company with a business attached.
Just like last year over 80% of our sales were for properties in the city of Valencia itself. The most popular area of the city for sales this year was Ensanche, with Ruzafa and Cabanyal retaining their popularity too. Outside the city the most popular areas were L'Eliana and Ribarroja with appearances being made by La Pobla de Vallbona, Calicanto, Port Saplaya, Torrente, Xirivella, Paiporta and Denia to the South.
Interestingly we didn't make a single sale in the previously popular towns of Naquera, Burjassot or Serra this year which may say something about what type of properties people are looking for perhaps but definitely says a little bit more about the lack of supply in those areas.
Just like last year when you consider that over 80% of our sales were in the city of Valencia itself then it follows that the huge majority of sales were for city apartments. Many people were looking for penthouses but the lack of supply meant that people settled for a decent sized terrace. Equally a large percentage of sales this year were for properties to modernise with the old adage of buying good bones proving more than true time and time again.
There was a move into investment apartments on the edge of the city and also outside in the larger towns as the returns were equal to or better than the returns of apartments in the city despite the large increase in rental prices this year.
As the year wore on we found that more of our clients were deciding to get a mortgage to buy their Valencia Property and towards the end of the year the mortgage rates that we were able to achieve for our clients got higher. As I write this we are still getting fixed rates between 3.5-4.5% for twenty years depending on your circumstances or nationality, Americans can expect 5.5% fixed rates as we move into mid-December, and variable rates around Euribor plus 1.5%. Mortgages are still being given for most people as long as they can prove their ability to pay the monthly amounts and this includes a stress test imposed by the banks with a theoretical rise to 6%-6.5% in mortgage rates. If you can still prove affordability for that, then it's almost certain that they will give you a mortgage.
Prices are still rising in the market especially in the most in demand areas such as Valencia city centre and the most popular commuter and residential towns around the city such as Betera, La Eliana, Rocafort, Godella and La Cañada. We are starting to see the beginnings of a move into apartments outside the city by younger people looking for better deals in both rental and purchase. Getting more for your money is important.
As the cost of living crisis starts to bite all over Europe some people are starting to sell properties in order to make sure they are not caught out by rising prices. Therefore some bargains are beginning to be seen on the market. Spain's inflation rate has recently reduced to just over 6% after hitting 10% earlier in the year but despite that some people want a cushion against rising prices. Nevertheless, most people who have taken out mortgages in the last few years are protected against the rises in interest rates due to having fixed their rates around 2% so there are not many distressed sales still.
Most of the properties we have sold this year have been for personal use but there has been an uptick in the numbers of properties bought for investment and renting out to long and medium term tenants. We haven't sold any properties for Airbnb type renting this year and have noticed that some previous short term rentals have moved into medium or long term rental market as they give a more reliable return. The difficulties in getting licenes for holiday rental usage are real.
Perspectives for 2023 in the Valencia Property Market
The perspectives for next year are more than decent for us with a long list of clients already having booked in with us for their Valencia Property visits in the first few months of the year and others even booking in for June and July. There's nothing like preparation. Equally because of the increasing popularity of Valencia due to lots of factors that you can read about below, the market as a whole looks to be stable or even positive.
I have spent a lot of last few weeks on initial calls with clients who will be visiting in the next few months and getting them onboard with what we can offer them. Barring a Black Swan Event it looks as if there will continue to be strong demand in Valencia for next year and we will endeavour to make sure that we can cover that demand and help everyone to find their perfect Valencia Property. Make an appointment for your call with us here.
Valencia continues to be one of the most attractive destinations for international buyers, one of the reasons is given below. It has a great mix of quality of life, affordability and climate that attracts many people from elsewhere. We only expect to see increases in the demand in 2023 due to the implementation of the Digital Nomad visa, the increaed take up of the Golden Visa and the continuous good press that Valencia receives on an international basis.
Just like last year we more than doubled the sales we made during the year and the second half of the year has been just as in demand as the first half. Demand often drops in the second half of the year possibly due to the summer break but this year demand continued to be high especially at the top end of the market.
So to copy and paste from last year "We look forward to welcoming you and working for you exclusively as your buying agent in Valencia. Remember to let us know well in advance before coming over and to have calls with us before as we are extremely busy with demand from all over the world. Book your call with us here." Remember that this is how to work with us here at Valencia Property to get the best results.
Valencia Named the Number One Place to Live In The World Again
Valencia has been named the best city to live in in the World once again by Internations members, Valencia was ranked the best city in the World to live ahead of Dubai and Mexico City. You can see the full report here. The city ranks the best for quality of life but badly for career opportunities. However, that is not so important now because many of the people surveyed now bring their jobs with them. The report would be even better if they had managed to spell "Liveable" (Apparently it's OK without the "e" if you are American, it just looks wrong).
So just to reiterate, takes a deep breath, Valencia is the best place in the World to live according to Internations, the Green Capital of Europe for 2024, healthiest city in the World to live according to This is Money, one of the 50 best cities in the world according to Time magazine (and the only Spanish one in the list surprisingly), recommended tourist destination for 2022 according to CNN, the City in Spain that has most reduced its debt since 2015, by a massive 81% by the way, the best city for cycling in the whole of Spain with 9 million cyclists having used the green loop around the city in the few years since it was opened, the chosen host for the 2026 Gay Games to show its commitment to diversity, one of the largest commitments to social spending in Spain, European Capital of Intelligent tourism for 2022 combining design, sustainability and gastronomy.
And then there's the more intangible things about living here, the relaxation, the comfort, the atmosphere, the things that money can't buy. When are you coming to join us? Fill in our form at the article below and let us know, just click on the image.
Our End Of Year Competition.
Remember we have a prize draw this year and everyone who bought a property through us this year will be entered into our prize end of year draw to win a gorgeous framed print from the collection of Mike Hall, a mapmaker living and working here in Valencia.
We have chosen a map of Spain of course for the prize to brighten up anyone’s wall, in this case Mike’s full railway map of Spain. You can see it above. In order to win you just have to do one thing. All of our clients who have bought this year are entered into the draw and given a number taken from our database of when people bought. We will draw the winning number and then cross reference it with a positive review on Google or Facebook. If there is no review we can find then we will draw a second number and do the same again and so on. So we will be sending this message out to everyone who bought a property from us this year and we will be making the draw on the same day as the Spanish Xmas Lottery draw on the 22nd of December.
Now we can’t leave you out if you haven’t bought yet or who have bought in previous years. For those of you in this situation we will be having another draw. All of you who have already posted a review of us and those of you who haven’t yet but you mention how good our website and blog are will be entered into the second draw and we will be getting a second map and framing it ready for your purchase or to adorn your wall that you have had for a few years.
Again you can post the review on Facebook or Google (preferably both ;-)), click the links above, and send us a link to your review. We will give numbers and draw one at random to the winner. This second prize will be even easier to win as I guarantee we will have fewer entries than sales we have made this year. Most people don’t bother so if you do the chances of you winning are extremely high. Just to insist, a positive review on Google and/or Facebook and send us the link to our email, firstname.lastname@example.org
Do We Go Too Far?
We get a lot of praise for our property descritions for their quirky nature, the fun and effort we put into them and even the eductional content ;-). However we sometimes get accused of going too far. So the question is did we go to far on our property of the week this week? Does the description overshadow the 200k price drop making this place an absolute no brainer if you have the funds and want to make a perfect modernisation? Take a look and decide.
An Ecumenical Matter
"This amazing property in Rocafort, used to be a clerical house. A house that used to ring to the sounds of priests carrying on, full of laughter, but some tears too I’m sure. It has now fallen silent and is looking for some new owners to return it to its glory days.
Speaking of tears, imagine a young altar boy, nervous to receive his first invitation to this most holiest of houses, and his eyes widen with surprise upon seeing the sight that greets him as he enters the house. Yes, a beautiful staircase sweeping down from the upper floor.
And even more exciting, the priest beckons him down his back passage to emerge out onto the garden to reveal a large swimming pool (11m). Probably hosted many a priestly pool party in days of yore, but a very impressive feature for a townhouse.
Six bedrooms, plenty of room for lots of visitors to stay over – but not the kid from number 16 with the nosy parents, always asking too many damn questions – and 3 bathrooms, all with working locks, despite what Father Malachy used to say, what a trickster he was.
The giggle of priests has long since faded from these walls, but maybe you are the person to bring the high-jinks back to this beautiful property? Get in touch (no, not like that, an email is fine) and we’ll find out"
If You Liked This...
Then take a look at some similar previous posts including last year's report and more.