Homebuyers in Valencia now make up one out of four of the landlord population in Valencia, according to the result of a new finding by international property agency, Engel & Völkers.
The research which was collated from statistics from home sales and rental incomes in Valencia in the international segment shows that foreign buyers, majorly from the UK, France, Italy and Germany constitute 40% of property owners in the Spanish city.
The statistics also reported that average prices of real estate in the year have climbed by 4-6% in the year to date, as compared to the end of 2016. That rate, however, still leaves the prices of property at 46% under the peak value.
Other interesting observations from the research reveal that there are wide differences in the value of homes from district to district. For example, while prices of real estate rose by 6.5% in Poblat Maritims, in Valencian Eixample it declined by 5.8%. In Cuatro Carreres, the prices of houses increased by 10%, and followed the same pattern in Algirós with an 11% rise.
Areas around The Eixample, Alboraya-Patacona, Ciudad de las Ciencias, Pla del Real, and Old Town Ciutat Vella have seen the strongest demands where least valued homes are priced at 3,500 €/m2.
The most popular property types among buyers were flats with imposing buildings, or large flats that have good views.
The company also added that more home buyers now prefer properties located towards the beach or sited in the area around the old river bed of the Turia.
The report by Engel & Völkers in Valencia further adds that rental demand in the city has sharply risen with a noticeable shift in the population of home hunters from locals to foreign clients, and led by the British, Americans, French, and Italians. 54% of the city’s rental income now comes from overseas.
It states that rents have jumped between 5% and 10% in areas with the highest demands, although this is only true for homes in good condition.