The new update of the Valencian housing market once again leaves potential buyers breathless. And the latest report prepared by the UPV Housing Observatory Chair establishes that the average price of new housing in Valencia marks a new record and reaches 3,000 euros per square meter in the capital of Turia for the first time.
The price reaches its historical maximum in a context of increasing price increase. In the second quarter of 2022, the price already exceeded 2,700 euros per square meter and in 2023, this price was already 2,989 euros. Now the figure shoots up to 3,000 euros and leaves, in practice, 90 square meter apartments at a minimum of 270,000 euros.
Likewise, the report indicates that there are only 242 new homes in the city, which is why the supply has been reduced by 60% in the last three years. "Prices continue to rise due to the lack of supply and have increased by 54% since the third quarter of 2020. And the imbalance between supply and demand is so pronounced that this factor conditions everything else," the report states.
The Housing Observatory Chair describes the situation as “very worrying since these data are extrapolated in a similar way to second-hand housing and rentals.” Furthermore, they warn that these prices are expelling Valencians from their city and affirm that the impossibility of access to housing can lead to the creation of shanty towns. Also, they warn that this problem will continue over time because they explain that no matter how quickly policies are implemented to generate housing, the construction process is long and the new supply will take time to arrive.
Fernando Cos-Gayón, director of the UPV Housing Observatory Chair, assures that “the most effective solution is the one that we have been demanding for years, and that is the construction of Protected Housing, with the direct involvement of the Administrations, with formulas already expressed previously that favor public-private collaboration, avoiding decapitalization or over-indebtedness of our institutions.”
Data on new construction of multi-family buildings in the city of Valencia show an increase in the average unit price of housing of 7% compared to the report for the third quarter of 2022.
In this last quarter the increase is 0.5%, the increase moderates but the price continues to increase. In the study carried out in the metropolitan area, the average unit price of housing with respect to the report of the third quarter of 2022 also increases, in Horta Nord by 17%, in Horta Oest by 5% and in Horta Sud it has increased 2%. In Horta Nord, the highest prices for multi-family housing were recorded in the last quarter.
Particularly in the city of València, the districts of the city with the highest average price continue to be those of Campanar, Ciutat Vella and Algirós with average values above €4,000/m2.
