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UK property buyers heading back to Valencia
After the amendment of the controversial "land grab law" last year, the many attractions of the Valencia province are pulling in UK property buyers once again, reports Kyero.com...
The province of Valencia, located in eastern Spain, showcases a mixture of white sandy beaches, a rich interior and vibrant city - all within 23,255 sq.km. In many ways it represents the essence of Spain yet retains its own Catalan heritage attracting over 4 million visitors each year.
But as national average property prices soar to 241,000 (£162,300 according to the Kyero.com Spanish Property Index) where will the predicted 70,000 second homes bought by Brits this year be located? The province of Valencia takes up the challenge to be the number one choice in 2007.
Is "land grab" really dead and buried?
Valencia province has suffered from some adverse press in recent years due to the LRAU (Ley Reguladora de la Actividad Urbanistica). This was revised last year by the LUV (Ley Urbanistica Valenciana) and taking the simple precautions of taking legal advice and buying land designated as ‘urban’ should avoid any problems. It seems that buyers are taking this advice on board: of the 31,342 Spanish properties bought during the first quarter of 2006, Valencia was the most popular destination with 8870 being sold, accounting for 24% of all sales to foreigners.
The property market in Valencia is booming with average property prices of 212,000, 12% below the national average, attracting both second home owners and investors alike. The province displayed an average property price growth of 6.6% from 2005 to 2006 (198,275 - 211,370) and shows no signs of slowing. The price of new build property in Valencia City is increasing too, by over 15% in 2006 and now stands at 2,211 per m2, still almost half the price of new builds in the capital Madrid and Barcelona.
Of course some parts of the province are more in demand than others and this is reflected in average property prices. Towns such as Bocairent located inland, offer average prices 25% below the province average, Casinos, north-west of Valencia City, 32% below and Oliva, on the southern coast at 14% below. In contrast Chiva, on the main highway west of Valencia City offers average prices 5% above the province average, Monserrat, located south-west of Valencia City, 7% above and Valencia City itself with prices 19% above. The most sought after properties in the province are 3 bedroom villas which average at 194,000, 24% below the national average of 241,000.
Time to set sail to Valencia City
Valencia City, Spain’s third largest urban area, despite being one of the most expensive within the province still represents excellent value for money and great 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 positive impact of the 1992 Olympics Games on nearby Barcelona’s property market is expected to be mimicked by Valencia in 2007 and so there is no better time than to invest in this truly Spanish region.
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 clearly signalled its intention to host a Grand Prix and even surpass Monaco as the world centre for the lucrative motor sport. The Valencian government is keen to utilise the newly regenerated harbour to stage the event and this increased global attention should please property owners.
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 costal 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.”
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