The tension in the Valencia housing market is perpetuated, as described by the Housing Observatory Chair of the Polytechnic University of Valencia (UPV) in its report for the second quarter of 2023. It describes the completion of work as "unsustainable levels" new in the city, which cannot replace the one that moves the market, with very high demand. It is one of the reasons that drives its price up, especially in the metropolitan area, where the effect of shortages in the capital and the average price has risen by 6.36% in the last quarter.
The analysis describes the three main variables that affect the portrait of a market in which the evolution of the price continues to be conditioned, with upward pressure “irremediably in the short term”. On the one hand, the little replacement of new housing, despite the high demand that increases the price. There is only the reality of the law of supply and demand and a scenario of rising interest rates, so its effects also extend to rent. The Observatory reports that this past quarter the price has risen by 4%: "It continues to be extraordinarily worrying," he adds. Overall, year-on-year growth is 28% compared to the same period in 2022.
Likewise, the analysis directed by Fernando Cos-Gayón aims to be inspired by the Bauhaus and "bet on industrialized solutions" to adjust viable and sustainable models. And he opens the door to discuss the possibility of creating emergency public housing for "cases of severe vulnerability" that would be used exclusively for rent.
Regarding rent, the UPV study explains that the rental offer has decreased "drastically" by 50% in the city of Valencia - in 17 districts of the 19 of the city it fell between 25% and 75% -, although ensures the study that shows an "upward trend." Likewise, in Horta Nord, Oest and Sud, in the same period it has decreased by 47%, 62% and 82%, respectively.
If the offer is scarce, on the other hand, the price does not stop rising: at the end of 2019 the average price of a residential rental was 938 euros, while in the second quarter of this year it was already at 1,552 euros. The classification made of homes by price and rooms is especially eloquent, which puts the price of a studio at 1,230 euros and 1,837 euros for a tenant looking for a four-bedroom home.
The increase in housing prices is also perceived this summer in the holiday market. Yesterday the results of the Survey on the purchase, sale and rental of holiday homes through Valencian real estate agencies, carried out by the Association of Real Estate Agents of the Valencian Community (ASICVAL), were announced, in which it is pointed out that if the sale price has increased by 10 .6%, that of vacation rentals has done so by 9%, with the average price per night between 75 and 125 euros. Real estate managers recognize an increase in demand in both cases, higher than the previous year and mainly in vacation rentals.
And, what do those who buy a residence look for to spend the summer? Two-bedroom apartments are the most in demand, according to 58% of the real estate companies surveyed; They demand that it be located on the beachfront and have a swimming pool (according to 82.1% of real estate agents) and, secondly; garage. Among those who rent, interest is mainly in two-bedroom apartments.
