The Valencian property market is gearing up for a big upsurge in the following years. Although some may consider that the Spanish market is in crisis, we share the opinion with many that the market is finally reaching maturity. The average property values in Valencia have experienced a 186% increase since the year 2000; however the house prices are still undervalued in comparison to other Spanish cities. Valencia's average property price (?230.000) accounts to 93% of the national average (?248.000) whereas Barcelona's average house price (?619.000) accounts to 250% (Kyero.com, October 2007).
The property market in Valencia is still bullish with the average property price in the old centre (Ciutat Vella) having risen 10.3% since November 2006 (Fototcasa.es, October 2007) and shows steady continuous movement. In the same period prices have risen by 9.6% and 7.4% respectively in Nazaret and Malvarossa regions of Valencia centre. According to the Spanish Ministry of Housing, the national average property price advanced only 5.3% in the same time period.
Valencia has entered the millennium as one of the most interesting cities in Europe. It is rapidly becoming one of the most important tourist destinations in Spain attracting over 4 million visitors each year. The city boasts a combination of Gothic and modern architecture, wonderful beaches, and a vibrant local community. It is no surprise that Valencia attracts more and more foreign investors each year. Valencia stands as one of the most important cities in Spain, a city that stands by its cultural heritage and traditions.
It has been an eventful year in 2007 with Valencia hosting the 32nd Americas Cup, the first time the competition has been held in Europe. The Valencia port saw ?1 billion euros in infrastructure development and over 6 million visitors, and has put Valencia on the map as an important centre for sporting events worldwide. The world's oldest trophy will boastfully return in 2009 with the new port receiving a further 50 million euros for development.
Formula 1 gears up for its second urban based circuit in Europe, to be held in Valencia. The new circuit is based around the City of Arts and Sciences and the Marina area at Port Americas Cup. Surpassing Monaco and taking the lead as the new European Grand Prix, the race will be held on the 24th August 2008 around the Mediterranean port where developments for the circuit are well under way.
Valencia continues to grow from strength to strength and still has an immature market in relation to Barcelona and Madrid. With the Formula 1 and Americans Cup, a new high speed train link to Madrid, a metro extension, the airport extension and lots of low costs flights into Europe, Valencia provides the perfect formula for a profitable property investment; an ancient city that continues to be essential in the economic development of Spain.
Written by
Stewart Masters
Comercial Director/Director Comercial
www.openskyproperty.com