The Valencia Property 2023 Review

Firstly, let's get the formalities out of the way shall we? Seasons Greetings to everyone as this will be the last full blog post before the New Year, we may have a mini post in the next week but we produced an extra full blog a few days ago all about Stepping Stone Rentals and the available properties we currently have, you can read it here. For the first time ever we managed to get all of those that work with us locally together last week: Valencia Property, Dutch Valencia Property, Stepping Stone Rentals and the Valencia Remodels team came together in one place last week for our Xmas meal and that is the main image that accompanies this article. Say hello to Marije, Paul, David, me, Jess, Maria, Jesse, Gavin and Catherine and of course we look forward to saying hello to you and welcoming you to Valencia.


Sales

Last year, 2022, was the best year ever for our company where we sold more properties than ever before and by a wide margin. Our sales volume was up by almost 80% compared with 2021. 2023 was better and at the same time we set up two new companies and rented more properties than in previous years too. We are quite happy about that. This year our sales volume has gone up by 20% compared with last and we still have two weeks of the year left with some very interested, and interesting, clients visiting.

Our average transaction price has risen by 27% this year. This does not mean that prices have risen 27% of course, it just means we have successfully found places for more people at the higher end of the market and had fewer lower value investment properties sold. This is probably because those looking for lower priced properties to rent out have been unable to find what they are looking for as their requests are often impossible to fulfil. Prices have gone up of course and somebody looking for investment properties under 100k in Valencia City is bound to be disappointed. It's not going to happen. Expectations of what you pay for an investment property need to rise if that is the market you are looking at especially considering that returns will have risen significantly this year due to the rise in rental prices which has been 26% year on year.


Client Nationalities

Our number one market in the USA of course. That hasn't changed since the report in the Autumn. However, the percentage of Americans is now up to 45% this year as there has been quite a lot of Americans buying in the last quarter. The UK is also up to 27% now meaning that 72% of our sales are from clients in two countries alone. The rest are divided up into other countries with 19 countries represented in total now and four continents.

The numbers that are down are from the Netherlands but we are starting to see clients coming through now from our new Dutch website so we expect that to change in the next year especially now that we are starting to see Dutch Refugees after the unfortunate success of the Far Right in the Dutch elections meaning that the Dutch have now had their final straw moment just like the USA and UK had in 2016 with the election of the Sh*tGibbon and the disaster of Brexit and that other countries have also had since then with the election of fascists and/or idiots or in the case of Milei in Argentina a Fascist Idiot. We look forward to welcoming our Argentinian cousins as they flee.


Locations

As usual the majority of our sales were in the city of Valencia itself. However the percentage of sales made in the city has reduced and is now at 64%. The rest of our sales were divided roughly equally with Cullera being the second most popular place and Ribarroja third alongside Naquera. Outside the city in the suburbs there were sales in Museros, Paiporta, Silla, El Puig, Godella, Lliria, Naquera, La Pobla de Vallbona, L'Eliana and further afield in Denia.


Types of Property

Obviously when the majority of sales are in the city then the majority of properties are apartments, however there were also apartment sales outside the city this year too. 72% of our sales were for apartments, 14% for villas or and 14% for townhouses. It's the numbers of townhouses that are rising as people realise that they get a much larger space for their money when buying a townhouse compared with an apartment. This is especially true outside the city of Valencia itself but bear in mind the Cabanyal has its fair share of townhouse sales, and townhouses often come at a competitive price but maybe with more work required.

We have sold as many properties to modernise this year as last year and just like last year we have been advising people to buy good bones and renovate rather than trying to find perfection that somebody else has designed and renovated, this is nigh on impossible as everyone has different tastes. This means that our building teams organised by our sister company Valencia Remodels have been kept busy all year on major modernisation projects and also some smaller jobs.


Finance

As we mentioned earlier in the year some people were more reticent to get a mortgage as interest rates were higher than people were previously accustomed to. However, that wore off in the second half of the year as people became more used to the higher interest rates and realised that the rises seem to have stopped. With the opportunity in the future to change mortgage provider once interest rates drop, people have decided that 3.5-4% fixed rate is ok in the current climate. We have a signing upcoming this week and the clients have been offered a fixed rate of 3.2% which is more than decent. The last quarter has definitely seen an uptick in mortgage applications because it seems that people are comfortable with not only the interest rate but also the potential rental returns for those buying to invest as rentals have gone up a lot in price.


Reasons For Buying

People are moving to Valencia to upgrade their lifestyle. Over 80% of our sales have been to people buying for their primary residence. Only 18% of our sales have been for investment purposes. As we said in the post in the Autumn, we like that figure. We want people buying to live here who contribute to the local economy by buying things in the shops, using the cafes and restaurants regularly and inviting friends and family here to spend their money too. It's good for Valencia to have direct foreign investment coming in.

Almost 20% of our purchasing clients have been buyers looking to get the Golden Visa for purchases over 500k through either a single property or multiple property purchases. Most went for the single property route but a couple paid just under 500k and complemented their purchase with a garage or storage room purchase which has then been rented out or they went for two properties and the second one went into our Stepping Stone Rentals portfolio.


Client Funnel

The end of the year is looking more than decent and we are starting the year strongly with people booked in already between the New Year and the Spanish Reyes fiestas. We already have people booked in all the way through to July and even August 2024 so make sure to fill in the form on the following article and get your dates booked in (just click on the image to be taken to the article). You wouldn't want to miss out of course. Read this article about how to work with us and you'll see why it's important to contact us well before coming over.


Situation of the Market in General

There's one thing we always say to people that makes sense now and has always made sense, if you like it there are other who will like it too. And this is as true now as it ever was. If you read the press you might think that the market has slowed down all over the World due to interest rate rises. It's not true. Only last week three places that we had booked to see with clients sold before they could get to see them despite only booking the visits the day before. At one of them we received a call on arriving at the apartment block to say that the agent wouldn't be there because the person who made the first visit of the morning was signing a contract to reserve the property at that moment. Tough luck unfortunately (But we found them something better).

We are not seeing more properties coming onto the market at the moment and the draining of supply doesn't seem to have stopped either with just 5565 properties listed in Valencia for sale down from around 7000 a few months ago. So every time one sells and it isn't us who have sold it we sigh and move on trying to find even more places that will suit our clients. Make sure that you get the best help on the market and we will put you in touch with David, Paul, Gavin or Jess and they will guide you around the Valencia Property market.


The Rental Market

We keep saying it but the situation in the rental market is critical. There just aren't enough properties on the market for the demand that is in place and as a result rental prices have gone up this year by an average of 26%. Long term rentals are difficult to find as a result but luckily we have been successful with our rental service for more clients this year than ever before. You can read more about our rental service here. Our rental specialist Jess is ready to chat with you about your requirements. Again just fill in the form on the article here and we will contact you to start your rental search.

Equally, if you are looking for a shorter stay, your intial Stepping Stone Rental for three months then get in touch through our SSR site and Catherine will arrange that for you.


Our Changes in Valencia Property

The Valencia Property market changed this year requiring agents to be registered and as a result not only did we register on the Valencia Regional Government website but we also joined the local estate agents association ASICVAL where we now collaborate with more agencies to help out our clients to find their perfect property. We set up Stepping Stone Rentals which you can read more about on the website or in our last post here and we also set up a separate company Valencia Remodels to deal with not only our clients but also promote our builders to other clients who hadn't necessarily bought through us (Our clients still get preference when we have two competing reforms even if it is for a smaller job)

We grew our team as you can see in the main photo but we maintain our personal service to all our clients and generally start the process of purchasing a home here with one of our famous client consultation calls) We are still a small family and friend company based here in Valencia itself and will continue to be so as we move into our silver anniversary year of 2024, yes, 25 years here working for our clients. More about that to come in our next podcast.


That's a Wrap

So that's it for this post and probably for this year on the blog. Keep looking at our homepage for new properies being uploaded in the next couple of weeks and we look forward to writing again at the start of next year. The next podcast will be out too with everything you need to know about the Valencia Property market in the last 25 years but more especially what happened in the financial crisis in our new series of Valencia Stories (If you want to listen to our previous podcasts then feel free to work through our back catalogue here) and after but we will mostly be relaxing with our families and maybe taking a few trips away before getting back to business in 2024. Have a great holiday and we look forward to hearing from you soon.



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