REAL ESTATE MARKET IN THE COMMUNITIES OF PUZOL: BALANCE 2017
2017 again has been a very good year for the real estate market in the communities of Puzol. Still, it has been a year of transition from a bear market to a bullish scenario, from a market of sellers to a market of buyers, but if 2018 will show the same behavior, it is likely that we will, with full clarity, start talking about the bull market, where the time factor will begin to favor the seller.
We are still talking about the year of transition because the luxury segment still is not functioning with full normality, and because price increases have not been appreciated in all the products of the real estate market in the communities of Alfinach, Los Monasterios, and Monte Picayo.
The financing keeps flowing joyfully, and right now 70% of the operations are conducted with a mortgage.
In 2017 around 40 sales operations have been closed in the 3 communities of Puzol, of which 29 were sales of constructed houses and around 11 have been operations with plots.
Once again, the intermediate segment is the one that brings together the greatest number of sales, and also the lower segment continues to work quite well, in fact, these 2 price levels have behaved very similarly to the 2016 year, with a slight improvement in the number of operations and in their amount.
The luxury segment is working in the same way as the previous year, it gained more demand and less fear, and it caused the closure of more operations, but it is still hard to sell properties of above 1.000.000€ and hardly has been sold 10% of the offer, nevertheless in the intermediate segment approximately 60% of the offered properties have been sold. It is likely that the intermediate segment will experiment with the increase in prices since the supply of this type of property has started to run out.
Regarding the plots, this market gradually started to make its way. Around 11 plots have been sold. The plot sales operations in the communities of Alfinach, especially in the new zone, in Monte Picayo, and in Monasterios the first, second and third phases. In this last phase, the rise in land prices already can be seen. The number of sales in the third and fourth phases has been minimal but they have produced sales that ratify the increase in land prices. The third and fourth phases of Monasterios are those areas with more demand for plots, nevertheless, the increase in land prices caused buyers to acquire the plots in zones where the increase of the value was not produced yet.
The rental market has shown better results than in 2016. On 1 and 6 of January 2017, we sign both operations in the rental of properties in the luxury segment, which foreshadowed that the year would behave very well.
Around 30 properties have been rented and could be more, but the offer on the rental market is running out and this is diminishing the number of operations. Anyway, it was a good year, taking into account that the sales market also has functioned very well, besides we have noticed a significant increase in the luxury house renting operations of over 4.000€.
The bulk of the demand asks for furnished houses from 1.500€ to 3.000€, preferably with a swimming pool.
In short 2017 has been a very good year when some price increases have begun to be detected, the flow of demand has been powerful, and the financing and the will to finance a property stock has diminished, starts 2018 year, which is an exciting adventure.