Quarterly Report Real Estate Market in the Urbanizations of Puzol: SUMMER 2024

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The real estate market in the Puzol urbanizations has experienced a very positive first half of the year. Both the sales and rental markets have shown considerable dynamism, with a significant number of transactions closed.

Sales Market

There is strong demand, particularly for apartments up to €400,000. However, the majority of demand remains concentrated in the €400,000 to €750,000 price range for single-family homes, regardless of their condition. Notably, several transactions have occurred in the luxury housing segment, coinciding with a shortage of available plots in prime areas. As a result, properties in these prime locations are gaining prominence, allowing the high-end market to start operating with relative normality.

In the mid-range segment, the housing market is active, but prices are not rising. There is more demand than supply, but it is a restrained demand, waiting to buy at a reasonable price, which is currently hard to find. The high cost of financing encourages caution among potential buyers, preventing an abrupt increase in prices.

Land Market

In the land market, there is hardly any supply, and the last available options are slowly being sold. Subdividing or demolishing old houses will become interesting options for future plot buyers.

Buyer Profile

The current profile of buyers is people aged between 40 and 55 with children, who generally attend local schools. Approximately 50% of the buyers are Spanish, and 50% are foreigners.

Rental Market

In the rental market, 70% of the demand is foreign, with the remaining 30% being Spanish clients. Rental prices have undergone a slight correction, especially for properties that remained vacant throughout the low season (October-April). Additionally, there was a peak in demand in May, driven by school admissions notifications, leading to numerous rental transactions between May and June, exhausting the supply of available properties even before the summer began.

Outlook

Looking ahead, the second half of the year promises to be even more exciting, especially with the European Central Bank’s announced reduction in interest rates.

Pau Mollá: Real Estate Agent specializing in the urbanizations of Los Monasterios, Alfinach, and Monte Picayo