COVID 19 AND THE REAL ESTATE MARKET IN THE URBANIZATIONS OF PUZOL
We are living in an exceptional situation these days, which means that the analysis of the real estate micro-market within the urbanizations of Puzol must be conducted with great respect. As tenuous as the current situation is, the truth is that we are far from a crisis; in fact, we have experienced an increase in demand for both rental properties and sales. While it is possible that a global economic crisis is looming, the urbanizations of Puzol are in a very strong position to weather the storm. These are the reasons that support this theory:
Since the real estate crisis of 2008 to 2014, the real estate market within the Puzol urbanizations has remained steady. In the last 3 years we have experienced a conservative increase, between 10% and 15%, among the houses priced from € 300,000 to € 800,000. This increase is considered to be a level and realistic rise, based on the shortage of supply in this sector. There has also been an increase in the price of land within the most economical phases of Alfinach and Los Monasterios, due to the limited availability.
To offer a clear example, the last house we sold in July 2008, before the fall of Leman Brothers, sold for € 1,050,000. 12 years later it is currently on the market for € 700,000, which is reasonably priced based on the reality of today’s current market value.
LOW SUPPLY, HIGH DEMAND
Since the real estate market bottomed out in 2014, the volume of sales within this urbanization has been very good year after year. Unfortunately, the sales have been so respectable that the market currently has a truncated supply of properties for sale at prices between € 300,000 and € 800,000. There is also a low supply of reasonably priced land for sale, especially in the Los Monasterios urbanization where the scarcity of land has become a significant issue.
The rental market continues to be very strong, with the high demand generated yearly by the international schools located in the area.
Terraces, gardens, and swimming pools are the most demanded products as a result of the Covid-19 crisis. The confinement has revised the priorities of many buyers, as the importance of exterior space has equalled and, in some cases, surpassed the significance of the interior space. The threat of outbreaks or new viruses has permeated society, making it evident that a terrace or a garden with a swimming pool has much more value these days than before the virus compromised our mobility.
Interaction with nature combined with a private outdoor oasis are essential in this “new normal.” This clearly affects demand as our human needs for freedom, fresh air and mobility have become essential.
WORKING REMOTELY IS HERE TO STAY
Our office is located in the Plaza del Ayuntamiento of Valencia, in the heart of the city. Prior to the government-imposed quarantine, you typically had to wait during rush hour to have lunch or a coffee in one of the local establishments. As things are slowly returning to normal, the same establishments are functioning at limited-capacity. There are more parking spaces available, as larger companies have realized the many benefits of remote-work arrangements. The first priority is to quell the pandemic, however with remote work you will find savings in parking fees, gasoline, dining allowances, as well as office space rental costs. In addition, new technologies help and promote the concept of working remotely. Platforms like Zoom, Google Meet, Skype and many others help to facilitate remote group work.
With remote work becoming the new normal, the outskirts of large cities will benefit from expansive properties with larger outdoor spaces, offering better value for your money.
If you have the opportunity to work from home, then why not do it from your comfortable indoor space or beautiful outdoor space, enjoying the stunning views, and the luxury of your surroundings.