Analysis Real Estate Market Valencia 2024 Q3: again best region

Analysis Real Estate Market Valencia 2024 Q3

The Valencian real estate market remains an interesting place for both national and international buyers. With the end of 2024 in sight, it is time to take a deeper look at developments in the third quarter of this year. What are the trends in house prices, how does Valencia compare with other regions, and what does this mean for buyers? Read the key figures and insights in the Analysis Real Estate Market Valencia 2024 Q3.

General situation property market Spain

In the third quarter of 2024, the average price in Spain of both new and existing homes rose 3.1% on last year and 1.3% on the previous quarter. This represents a slight increase that keeps prices close to inflation levels.

Demand for houses in Spain remains strong. Between January and July, the number of house sales and purchases increased by 8% compared to the same period last year, according to data from notaries. The number of sales is being boosted by easier access to mortgages now that the European Central Bank has stopped raising interest rates.

On the other hand, the supply of houses remains limited. Between January and May, the number of building permits increased by 14.8%. While this is a positive development, it is still not enough to meet demand in popular areas, where land is scarce. The combination of strong demand and limited supply means that house prices remain under pressure.

More on Spain’s Q3 2024 property figures can be found here.

Autonomous Regions Spain Analysis Real Estate Market Spain 2024 Q3
Increase of property prices year-on-year by province

Property prices Valencia vs other regions in Spain

In terms of autonomous regions, the Comunidad Valenciana is one of the most striking regions in Spain when it comes to property price increases. Whereas across Spain as a whole, the average annual price increase is 3.1%, in the Valencia region it is a whopping 6.8%! These figures are mainly driven by the provinces of Valencia (+6.2%) and Alicante (+9.0%).

The average price in Valencia province is now €1,453 per square metre and in Valencia city €2,140 per square metre. By comparison, Madrid province now stands at €3,049 per square metre and Madrid city at €3,895 per square metre. For Barcelona, €2,582 per square metre for the province and €3,849 per square metre for the city.

Cities Spain Analysis Real estate market Valencia 2024 Q3
Average m² prices by city (n.b.: only Catalonia to Madrid are on this image)

Property prices Valencia city by neighbourhood and district

In 11 of Valencia’s 19 districts, property prices have risen by more than 10% over the past year. The increases range from +2.0% in Campanar to an impressive 18.8% in Poblados del Sur. L’Olivereta also saw a strong rise, with prices climbing more than 15%.

When looking at price per square meter, Ciutat Vella and Ensanche (L’Eixample) lead the way, with prices exceeding €2,800/m². El Pla del Real follows, with prices over €2,500/m². Of course, this is still a bargain compared to high-end neighborhoods in cities like London or New York. In London, prices reach around £7,100/m² (€8,200/m²), and in New York, they can soar even higher, averaging $14,200/m² (€13,400/m²) in prime areas.

Districts Valencia Analysis Real estate market Valencia 2024 Q3
Average m² prices by neighborhood

CAGR (Compound Annual Grow Rate)

In the table, in addition to the square footage and annual price growth rate, you’ll also see the CAGR listed. CAGR (Compound Annual Growth Rate), or compound annual growth rate, shows the average annual growth rate of real estate over a period of time, stacking the growth each year. It provides a clear picture of long-term value appreciation, even if annual growth varies. This CAGR is calculated over 5 years.

The CAGR over all of Valencia city is 7.9%. By comparison, in Madrid it is 5.0% and in Barcelona only 2.3%.

Map neighborhoods Valencia Analysis Real estate market Valencia 2024 Q3
Average price per m² - Percentage price increase year-on-year - Average yield

Conclusion real estate market Valencia 2024 Q3

In the third quarter of 2024, Valencia once again confirms its position as one of Spain’s fastest-growing real estate markets. With price increases higher than the national average and increasing demand for housing, the region continues to offer good opportunities for buyers and investors. Nevertheless, supply remains limited, creating additional pressure on prices in popular areas. As a result, Valencia remains undiminished as one of the most attractive destinations for property buyers for the foreseeable future.

Do you have questions as a result of this blog, or do you have other questions about investing in Valencia? Contact our team, we are happy to help!

Source: TINSA

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