The lack of land in Valencia is one of the usual complaints from the real estate sector, which calls for a new urban planning plan as well as speedy licensing. These claims are now joined by the confirmation of a study prepared by the Housing Observatory Chair of the Polytechnic University of Valencia (UPV) which maintains that, in a scenario with half of the possible homes built, the average price of housing in the city it would decrease by more than 30%.
The report has used the cartographic viewer of the Generalitat to analyze the lots available in the city, which add up to a total of 260,157.58 square meters. In them, they quantify the possibility of building 2,312 new homes, mainly in Pobles del Sud and Quatre Carreres, where more housing solutions could be built.
To specify the impact that the provision of new subsidized housing to the public would have, the UPV has analyzed the available land and has prepared a projection with various scenarios, depending on whether it is built to a greater or lesser extent on the available lots in the city. .
For this, the Chair has taken as a reference the current maximum sale price for subsidized housing in the city of Valencia, 1,819 euros/useful square meter, and another more adjusted to current construction costs, 2,000 euros/useful square meter.
With these prices they have contemplated three hypotheses: that 30%, 50% and 100% of said homes were built on those available lots, and how this new offer would impact the average price of housing in the city.
The most positive scenario for price improvement is that of the full use of the city's plots. In all cases, two variables are considered to be highlighted: the first, the average price of free housing, located at 289,067 euros, and second, that of subsidized housing, which is 163,728 euros. Thus, in the case that draws the hypothesis of the total use of plots, the weighted price would be 178,166 euros, which represents a decrease of 38.37%.
In scenario two, where subsidized housing is built on half the plots, the weighted price would be 189,622 euros, a 34.4% decrease. And in the case of building on 30% of the plots, the most pessimistic scenario, the study's conclusions place the weighted price at 201,645 euros and the price drop would be 30.24%.
With all this, the report concludes that a new offer of subsidized housing, public or private, would reduce the price of houses in a "forceful" way and would relax the housing market. They also add that this would not compromise the health of the real estate sector, which would continue to generate employment.
