Tuesday, October 3, 2023

Housing is up almost 3% in the community but sales are holding back

Real estate prices in the Valencian Community are increasing again due to the increased cost of new construction. The increase in construction costs has made new construction more expensive than it was a few years ago, resulting in the value of a property in the Valencian Autonomy increasing by an average of 2.6% in the second quarter of the year. However, it is still below the national average, and the increase is one of the lowest in Spain.

Thus, the price per square meter in the Valencian Community reached 1,482 euros in June, up 2.6% on the previous quarter, according to statistics from the Dean’s Office of the College of Land Registry. Specifically, it was EUR 1,633 per square meter in Alicante, EUR 1,138 per square meter in Castellón, and EUR 1,368 in Valencia.

This situation is a consequence of the increase in the price of new housing, which rose by 5.4% to EUR 1,930 per square meter, while the price of used housing increased by only 1.6% to EUR 1,400. In any case, it is the tenth most expensive price in Spain, rising after two consecutive quarters of declines by an average of 3.1% compared to the previous quarter to 1,979 euros per square meter, also due to the general upturn in new housing (4.1%) and, to a lesser extent, used housing (2.7%).

All the autonomous communities recorded an increase in their average scores, with the exception of Cantabria, the Basque Country, and La Rioja. The highest prices were in Madrid at EUR 3,299 per square meter, followed by the Balearic Islands (EUR 3,214), the Basque Country (EUR 2,943), and Catalonia (EUR 2,474). In contrast, Castilla la Mancha (864 euros) and Extremadura (783 euros) were the only municipalities below 1,000 euros per square meter.

La Comunitat, second-largest place with most sales

Despite the increase, the number of sales in the Autonomous Community of Valencia has not suffered, falling by 3.1%, but less than in other autonomes. In this sense, 25,114 operations were registered in the second quarter, making the region the second-largest region with the highest volume of transactions, only behind Andalusia, where 30,698 operations were recorded. Of the total in Valencia, 21,496 are resale properties and 3,618 are new builds.

Photo: Eduardo Manzana

In addition, from April to June, the Valencian Community placed two of its provinces in the top four for home sales: Alicante is third with 12,622 transactions, while Valencia is fourth with 9,829. Castellón, in turn, achieved 2,663 sales.

This resistance can also be explained by the strong attraction of foreign demand, which accounted for 30% of the total business in the Community and was the third largest region with most purchases after the Canary Islands (30.6%) and the Balearic Islands (30.4%). foreigner is. The countries with the greatest weight in the region were the United Kingdom, Belgium, the Netherlands, Germany, Poland, France, and Sweden.

At the national level, foreign demand for housing reached 14.9% of turnover, up 0.4 percentage points from the previous quarter and the second highest result in the historical series after the peak reached in the third quarter of 2022 (15.9%). The registrars explain that it is important to keep sales figures high.

On the other hand, the Autonomous Community of Valencia registered a total of 10,984 mortgages, ranking fourth in the regional classification. In Spain, the number of mortgages rose from 109,406 in the first quarter of the year to 93,557 in the second quarter, down 14.5% after four straight quarters of declines.

World Nation News Desk
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