Valencia – House Hunting and the Market Overview…………………..
The coastal province of Valencia is cheaper and more manageable than Spain’s major metropolises, making it an appealing alternative for many home buyers.
Spain’s residential market has been on a gradual rebound since around 2012, when luxury properties began to recover following the global recession.
During the financial crisis that began in 2008, home prices fell 30 to 35 percent across the country, she said, noting that they have since risen by about 8 percent overall, although prices in Madrid and Barcelona have recovered more rapidly.
The recovery is expected to continue, with the International Monetary Fund predicting that Spain’s economy will outperform those of Germany and France in 2018. In Valencia, third-quarter sale prices averaged about 1,900 euros a square meter (or about $200 a square foot) this year.
Old Town, a historic neighborhood known for its winding streets, Central Market and medieval cathedral, is one of the most popular areas with tourists and foreign buyers. A typical two-bedroom apartment there sells for around 300,000 euros (or about $340,000), while a two-bedroom penthouse in a fully restored building can go for around 500,000 euros ($565,000).
Foreign buyers are also interested in seaside properties, although they often prefer the beach areas just outside city limits, where more property is available and there is more new construction. While prices vary depending on location, a two-bedroom apartment in these areas generally goes for 250,000 to 500,000 euros ($280,000 to $565,000).
For foreign buyers, the appeal of Valencia — Spain’s third largest city, with a population of roughly 790,000 — lies in its affordability and manageable size relative to Madrid and Barcelona, as well as the access to a historic city center and Mediterranean beaches.
“You can get from one side of the city to the other in 15 minutes, and for people who don’t want the typical holiday resort, this has more of a cultural and elegant feel.”
Foreign buyers account for roughly 10 percent of all sales in Valencia, according to the Registrars in Spain.
The country’s Golden Visa program grants non-Europeans “the fast-track right to residency” if they invest at least 500,000 euros ($565,000) in real estate.
Buying Basics
There are no restrictions on foreign buyers in Spain. But buyers from outside the country are strongly advised to work closely with a real estate agent and a lawyer who will perform the necessary due diligence.
Taxes and fees, including legal fees and the 10 percent transfer tax, typically amount to around 15 percent of the sale price. The real estate agent’s commission in Valencia is usually 4 to 5 percent, and is split between buyer and seller. There are also other combinations….
Mortgages are available to foreigners, although typically not for more than 70 percent of the sale price, and less than that for investment properties. – Villas Valencia can assist. Just let us know what you are looking for as we only charge 3 %.
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