The first quarter of 2022 has already passed. If we take the rush at our company for an example, it is currently very busy on the housing market in Valencia. After a period of 1.5 years of relative calm due to Corona, sales have been on the rise since last summer. We notice that many people have taken the step to buy their dream house now or to invest in real estate in Valencia. But what do official figures say? The first Spanish property analysis of this year from TINSA has just been released and we have made a summary of it for Valencia, the Real Estate Market Analysis Valencia Q1 2022.
View the complete report of the Real Estate Analysis Spain 2022 Q1 here.
Overall situation of the housing market in Spain in 2022
Across Spain, the average price of homes (new construction and existing construction) increased by 6.6% compared to last year and by 2.3% compared to the previous quarter Q4 2021. After the strong increase during 2021, the average price increase in the first quarter is similar to that of the previous quarter. Considering the rush and active demand at the moment, this increase in house prices reflects the situation at the moment.
Despite the slight uncertainty surrounding the development of the war in Ukraine, real estate remains an alternative for protection against inflation and a good option for investors to expand their property portfolio. A comparison with the 2019 figures makes it clear that we have already overcome the dip from the corona crisis.
Property prices in Valencia city
In the Valencia region, the increase in the average selling price was 5%. A good average if you look at the other regions in Spain. Where a remarkable development took place, was in Valencia city. From year to year, there was a fluctuation of more than 10% in the four districts of Campanar, Quatre Carreres, Ciutat Vella and Rascaña. Ciutat Vella, L’ Eixample and Pla del Real are in the top positions with more than 2,000 euros per m2. In comparison, in the Valencia region the average price per m2 in the first quarter of 2022 is 1,214 euros.
Return on investment in Valencia
House prices in the region and Valencia city are still interesting for foreign buyers looking for a good return on their investment.
The map below shows in green: the average price per square metre per quarter, in blue: the average price increase year on year per quarter and in yellow: the gross rental yield per quarter.
The average for Valencia city is:
Price: €1,687 per m2
Price increase: 6.4%
Gross rental yield: 4.7%
A table shows again where the aforementioned price increase is in the districts in Valencia city: 11.4% in Ciutat Vella, 12% in Campanar, 11.4% in Quatre Carreres and 11.1% in Rascaña. These districts are therefore becoming increasingly popular with investors.
With an average return of 4.7%, Valencia City still leads the way among the three largest Spanish cities; in Barcelona the average is 4.1% and in Madrid 4.4%.