The coronavirus will cause a general decline in Valencia property price, as well as a significant break on the signing of sales and mortgages, and full recovery would be delayed until 2022.
The experts consensus estimates that the fall in Valencia property price would be between 6% and 10%, although some types of houses could resist the coming crisis and even become more expensive.
Key factors to keep into account: the volatility of the stock market, the conviction that interest rates will remain low over the next few years, and the prospect of a U-shaped exit from this crisis.
All these factor will lead to an economic recovery within one to two years. Many savers or investors have an eye on the property market.
We have already observed a greater interest in properties that have a terrace, garden, balcony, or excellent views, those located in cities close to major cities and within the areas of the capital close to green spaces. This type of housing could have more demand and a consequent rise in prices in the coming months if there is no growth in supply. We summarize what stands out in each case:
1. Homes with balconies, terraces, good views, or garden:
The confinement experienced has made us rethink our home as a space in which to really live.
2. Houses on the outskirts of cities or even in provincial capitals other than where you work:
Remote working, which has become much more widespread in the wake of the pandemic, has encouraged some people to move away from their homes to work and has opened up new possibilities for foreign professionals who prefer our climate.
3. Very well located apartments:
After the stock market crash of the last few weeks, many small investors are already looking for investment opportunities in the real estate sector. These investors seek the security and stability that rental income from a well located 40 or 50 m2 apartment can provide.
4- The rental market in Valencia will be strengthened and further professionalized after the coronavirus crisis phase:
Not only has demand risen, but the conditions in which rentals will be formalized are better. The rental market is on the rise, so the demand for cheap apartments as an investment in areas on the outskirts of the city will increase.
Many experts recommend being alert to the buying or selling opportunities that may arise as a consequence of the Valencia property covid-19 pandemic. However, others advise waiting for the adjustment in the sector to be defined before making the decision.
According to our last Covid Valencia report, property prices will fall except the prices of Valencia property which have some outside space, also neighbourhoods in the skirt of the city will be in the hot spot.
Property investors can expect good return in low cost properties in the city regardless the type of property as demand for rentals is still high.