BBVA: Covid left 27,000 homes unsold in the Valencian region

In Spain, the price of second-hand housing in the third quarter of 2021 experienced a quarterly increase of 0.4% and a year-on-year increase of 2.5%, placing the average price at 1,892 euros/m2
Last year housing sales fell by 50% in Spain, and by 54% in the Valencian region.

The impact of the pandemic on the real estate sector generated a pent up demand as a result of the restrictions, which has been decreasing as the situation has improved. According to BBVA Research estimates, this demand amounted to some 125,000 homes in Spain as a whole, of which 27,000 corresponded to the Valencian Community.
Views of Zaragoza, Spain
Views of Valencia, Spain
This is one of the conclusions of the Real Estate Situation study presented by Félix Lores, from BBVA Research Real Estate, in which he points out that last year home sales fell by 50% in Spain and that the fall in the Valencian Community was 54%, due to the lack of tourists and because of the significant weight of foreigners in the regional market.

Demand is recovering strongly, supported by the economic improvement. The BBVA forecasts that transactions will reach pre-pandemic levels in the region this year.

By provinces, this situation would occur in both Valencia and Castellón, but not in the province of Alicante, which has not yet regained its previous dynamism. According to Lagos, the explanation lies in Alicante's strong dependence on international buyers, specifically the British, which has not yet taken off at the same rate as national demand.

On the supply side, the study points out that the situation in the community is weaker than the Spanish average. Between January and July, visas have evolved negatively in the region, with a decrease of 11.3% compared to an increase of 25.5% in Spain.


In terms of trends, this analyst mentioned that buyers tend to look for larger, single-family homes and also properties with terraces. This is a consequence of the pandemic, partly due to the need for open spaces, and also due to working from home.

In his conclusions he points out that the recovery is being supported by demand and savings (factors that will be exhausted) but in the future this recovery could be supported by the attraction of the immigrant population and the purchase of second homes by foreigners.

Property in Alicante

Property in Valencia

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