It’s official: the number of properties sold to foreigners in Valencia has never been higher, and the gap between sales in our province and sales in Alicante is closing every year.
The number of Properties sold to foreigners in Valencia is increasing and reaching new heights. After a recent slowdown in sales across the country due to pandemic-related restrictions, property transactions began to show strong growth in 2021. Not only that, but the number of international purchases exceeded the levels prior to the outbreak of the health crisis.
This is the conclusion of the latest report of the Notarial Association of Valencia, which shows that in the last year, 16.9 percent of the 42,451 sales in the province of Valencia were made by foreigners – approximately 7,171 properties. The proportion of foreign buyers in the Valencian Community also sets a new high. In 2021, out of 103,600 properties sold in the Comunidad Valenciana, 31,013 sets of keys went to international buyers, primarily on the Costa Blanca, reaching almost 30% of the total number
The province of Valencia continues to lag behind the province of Alicante, which had more than 21,451 sales to foreigners in 2021. These sales were mostly recorded on the coast, where foreigners began looking for second homes again, and the majority of the buyers were British, Belgian, and Swedish citizens.
But, on the other hand, this gap is gradually closing. While the number of properties sold to foreigners in Valencia was 4,511 in 2016, it increased to 5,892 in 2017, 6,948 in 2018, and 6,982 in 2019. Because of the pandemic, the number of properties sold to foreigners in Valencia fell to 5,082 in 2020, but in 2021, the curve shifted upward, and there were 7,171 sales recorded, the highest figure in recent years, according to notary data.
The average property price in the Province of Valencia also increased significantly, reaching 113,000 euros in 2021, up from 100,450 euros in 2020. Due to the high prices of seaside properties on the Alicante coast, the average value of sales to foreigners is slightly higher at the regional level, reaching 167,064 euros.
What stands out is that the properties sold to foreigners in Valencia were almost exclusively second hand properties. There were 6,803 resale properties acquired out of 7,171 total purchases, accounting for 96.45 percent of the total. Only 335 new-build homes were bought by foreigners in the last year, accounting for 3.38 percent of the total.
Who are the international buyers?
Continuing a recent trend, the majority of buyers in Valencia were from Romania, followed by clients from Italy, France, Morocco, and the United Kingdom. Since 2016, Romanians and French have been among the top property buyers.
According to notary data, Romanian citizens top the 2021 list by purchasing 679 homes in Valencia. They are followed by Italians (657), French (652), and Moroccans (566). Despite Brexit and the complicated procedure for a long stay in Spain, British buyers took fourth place with 427 properties acquired.
When it comes to growth in the various markets, Italians take the lead, nearly doubling the amount of purchased properties in comparison to previous years. Algerian, German, and Swiss markets experienced extraordinary growth too.
There is a strong expectation that the number of properties sold to foreigners in Valencia will increase faster than usual in the coming years. With the city’s growing popularity as a tourist destination, and with low property prices and a low cost of living, as well as an excellent infrastructure, Valencia has begun to attract people not only from Europe, but also from the United States, Canada, China, and many other countries.
This article is brought to you by Expat Hub Valencia, a property buying agent and a property lawyer in Valencia. Using the Expat Hub’s services, you will be able to successfully navigate Valencia’s complicated property market in no time.