Buying A House In Valencia

As national average property prices soar to €241,000 (£162,300 according to the Kyero.com Spanish Property Index) it’s predicted that British buyers will buy 70,000 second homes in Spain this year; but where will they buy?

The province of Valencia is hoping to be the number one choice in 2007.

Valencia, in eastern Spain, is blessed by a mixture of white sandy beaches, a rich interior and a vibrant city. In many ways it represents the essence of Spain yet retains its own Catalan heritage and attracts over 4 million visitors each year.

The property market in Valencia is booming with average property prices of €212,000, 12% below the national average, attracting both second homeowners and investors alike. The province displayed an average property price growth of almost seven percent from 2005 to 2006. The price of new build property in Valencia City is increasing too, by over 15 percent in 2006 and now stands at €2,211 per m2, still almost half the price of new builds in Madrid and Barcelona. Of the 31,342 Spanish properties bought during the first quarter of 2006, Valencia was the most popular destination with 8,870 being sold, accounting for 24 percent of all sales to foreigners.

Towns such as Bocairent, located inland, offer average prices 25 percent below the province average, Casinos, northwest of Valencia City, 32 percent below and Oliva, on the southern coast at 14 percent below. In contrast Chiva, on the main highway west of Valencia City offers average prices 5 percent above the province average, Monserrat, located south-west of Valencia City, 7 percent above and Valencia City itself with prices 19 percent above. The most sought after properties in the province are 3 bedroom villas which average at €194,000, 24 percent below the national average of €241,000.

Valencia City is Spain’s third largest urban area is thought by many to represent good value for money and to have good investment potential. 2007 will be an eventful time for the city as it will play host to the 32nd Americas Cup from April to July and enjoy an expected global TV audience of 300 million as well as 1 billion Euros worth of infrastructure development. This includes the new high-speed rail link from Madrid, redevelopment of the Inner Harbour and the extension of the metro and main airport which already receives low cost flights from the UK and Ireland (Easyjet, Ryanair, Thomsonfly and Clickair). The boost from the 1992 Olympics Games to nearby Barcelona’s property market is expected to be mimicked by Valencia in 2007.

In addition to the ‘sailing olympics’ Valencia is also gearing up for Formula 1. The McLaren Mercedes 2007 season car was launched recently in Valencia and the city has signalled its intention to host a Grand Prix and surpass Monaco as the world centre for the lucrative motor sport. The Valencian government is keen to use the newly regenerated harbour to stage the event.

Martin Dell, MD of leading Spanish property portal Kyero.com, comments, “We have seen property prices rise steadily in Valencia over the last couple of years. The province offers potential buyers such a variety from city to coastal and inland properties and bargains are still to be had. The Kyero.com Spanish Property Index for Valencia suggests that there is an opportunity for capital gains in the area; it is no wonder that Valencia province attracts more and more foreign buyers each year.”