QUARTERLY REPORT ON THE REAL ESTATE MARKET IN THE COMMUNITIES OF PUZOL: SPRING 2018

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The real estate market in the communities of Puzol started 2018 year with a lot of power. The end of the term has drawn a scene of changes in property supply in the communities of Alfinach, Los Monasterios and Monte Picayo.

Some of the few good options, left in the price segment between 400.000€ and 700.000€ have been sold. The houses in this price range of the real estate market run out, which this year will cause a rise of the prices. Nor is the excessive supply of renovated houses between 700.000 and 1.000.000€, which probably ends up displacing part of the demand towards the purchase of plots or towards the search for properties in the superior price segment.

Regarding the plot market, there is enough demand right now, searching the options, it is evident that prices on plots are rising and at the moment the best-located plots, generally with views, mark up a price of between 350 and 400 euros per square meter. In the first and second phases of Monasterios and in the old part of Alfinach you could still purchase the plots between 250 and 300 euros.

If the rate of the sales of plots will maintain, it is very probable that in 2019 and 2020 there will be a real problem in this market. Right now the owners of the offer are proposing a rise in the land price for this year and it is expected that the high level of demand will cause the consolidation of this increase.

If the property supply in the sales market is bad, it is unlikely that the rental market would be a lifeline for demand. The only positive thing that can happen is that some of the properties that had to be rented due to the lack of customers during the crisis, now once they complete the rental cycle return to the sales market, thus alleviating the supply shortage. It happened to us with one of these houses, certainly, we sold it within a week even without coming to publishing it.

The offer on the rental market is very low, there are barely 10-15 houses for rent and the season is starting right now, thus it is quite possible that this year supply will practically run out and start to happen the same as in big cities, waiting list and rising prices, especially for the most demanded properties, semi-new or renovated houses, with swimming pools.

We have always said that a bullish cycle is not the best scenario for a property sale, the best moment is when the price trend has a flat behavior and does not suffer rises and falls. In the last few years, we have been in this scenario and moreover, there has been a lot of supply and enough demand and financing. This year the prices in specific segments will start plainly rise, there is not an abundance of properties in sales between 400.000 and 1.000.000€ which will cause the already mentioned main activity in the plot market or even to activate the price segment to over 1.000.000 euros, if not, it is very likely that the number of sales that are closed in 2018 will be less than the sales made in 2017.

What is very likely is that 2018 will be different from the 3 years that have preceded.

Pau Mollá: Real estate agent specializing in the sale and rent of properties in the communities of Puzol. 

 

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