Quarterly report on The real estate market – Autumn 2023
In this last quarter, the real estate market in the urbanizations of Puzol has varied slightly with regard to the fluctuating price points. There continues to be a high demand for properties, although purchases have remained moderate, mainly due to the lack of homes for sale.
BUYING AND SELLING MARKET
Recently, the demand for homes with a garden ranging between €700,000-€750,000, regardless of its state of preservation, has been high. However, the lack of properties available for sale continues to be problematic. Similarly, buyers are not willing to pay more than €700,000-750,000 if it is a home that needs renovating.
Furthermore, regarding luxury homes, semi-new or renovated houses range between 2 and 3 million euros, sometimes more. The sale of these types of homes tends to be slower, considering the lack of properties available and the current market situation. As we have commented on other occasions, the lack of plots available at this price point increases the opportunity for this type of property to be sold, if they were to become available.
The current supply situation is delicate. Among the 3 urbanizations, we have around 65 homes with gardens for sale and 5 apartments. There are 7 plots available for new builds, in Los Monasterios, approximately 15 available in Alfinach, and 5 in Monte Picayo. The current locations of available plots, with some exceptions, are not “Prime” locations. To give you an idea of how the market has changed, in the 2008-2009 crisis, including land and homes, there were about 225 properties for sale. Along with the financial collapse, and the uncertainty of excess supply and demand, we saw a sharp drop in prices.
Today, we have a total of about 97 properties for sale between the 3 urbanizations in Puzol. With interest rates at their highest, the banks are still looking for solvent clients. As you can imagine, COVID has greatly increased the sale of these types of properties and with the arrival of large companies and multinationals, the prospects in the area are not discouraging at all. Once again, the situation is very different, there is demand but there is no supply. So, those who are experiencing difficulty at the moment are the real estate professionals, as opportunities are limited. Once more, as real estate agents, we find ourselves in an unprecedented situation with its own difficulties, but also a great opportunity to learn how to manage a new scenario in this exciting profession.
This summer we saw a very different situation from past summers regarding the rental market, despite there being almost no supply there continued to be a high demand. We are concerned that the sharp rise in prices has caused potential clients to look for alternatives outside the Puzol developments, at least temporarily. There is still a high demand for rental homes up to €3,000-€3,500. Rentals are signed at much higher prices for more exclusive, new, or completely renovated houses whose supply is very limited, but the bulk of the demand continues to hover around €3,000-€3,500.