The price of new housing in the city of Valencia has increased by 26% according to the Chair of the Housing Observatory of the Polytechnic University of Valencia and for 2023 all its forecasts indicate that it will continue to grow at rates of nearly 3% quarterly in the first part of the year.
The Chair of the Housing Observatory is strong in its latest analysis of the year on the real estate market in the city of Valencia and its metropolitan area. In the words of its director Fernando Cos-Gayón, “the price of new housing in Valencia will continue to grow in 2023. There will not be a drop, let alone drastic”.
According to their data, this 2022 the price of new homes has increased by 26% and by 2023 all forecasts indicate that it will continue to grow. These show that during the first quarter of 2023 the price will increase by 2.9% and by 2.8% in the second quarter of the year.
price increase It is produced by the high inequality between housing supply and demand caused by scarcity of new developments due to little available land in the city and the increase in the cost of raw materials, among others.
Another clear example of market tension and the consequent rise in prices can be found in the comparison between the fourth quarter of 2019 and the same quarter of 2022. In the fourth quarter of this year, the price rose by more than 50% compared to the lo same quarter just two years ago.
This new presidency report details concluding data that contradicts alarming headlines about a housing crisis that doesn’t match forecasts for next year. “This year has been exceptional, the price of houses has increased by 26%. In 2023 it will continue to rise, obviously not to those numbers, but it will continue to increase. Let’s not be catastrophists since the sector is in good health,” Cos-Gayón underlined.
Rental at historic highs
The document also analyzes the residential rental offer in which its average price is at an all-time high with 1,200 euros per monthfar exceeding the average mortgage payment in the city.
Faced with this escalation in prices, both for rent and for purchase, the president insists on the urgent need for public administrations to address the extreme situation in which access to housing finds itself in the Valencian real estate market.
Fernando Cos-Gayón stresses that “policies are needed that guarantee access, through direct aid, purchase guarantees and unfinanced amounts, an effective and sustainable public-private partnership that makes the development of promotions aimed at these typologies, a effective management in urban development Without these actions, there is the risk of entering a housing emergency situation for a significant part of the population who can no longer buy a house, but can even rent a complete one, having to share it with several families.
