The bursting of the real estate bubble in 2008 destroyed a significant portion of the real estate industry, but it also new construction And second hand they will leave two increasingly distant markets. If by that date both segments offer a similar volume of operations and price differences in the Valencian Community are around 20%, at present used homes currently account for around 90% of transactionsif their houses new construction It has become a luxury item. A cost higher than 70%.
This is what the report reveals immocojuncture 2023 Alicante appraiser euro value, who analyzes this “dual” evolution of the market in recent years. It is a situation that occurs in a general way throughout the country, although with special intensity in autonomous regions such as Valencia.
According to the data obtained from the study, before the balloon burst in 2007, New builds and second-hand share the market almost equally autonomy, with a total of 61,884 transactions for the former and 63,889 transactions for the latter. However, with the onset of the crisis, new building construction fell sharply, significantly limiting the supply of new construction.
In this context, it is regularly presented by the College of Quantity Surveyors in Alicante and Building more than 50,000 homes a year, it went into full swing and hit bottom with just 1,329 properties in 2012. Although activities started to recover from 2014, the reality is that even in 2019, the best year to date, only 7,532 new homes were launched, a very small percentage compared to the previous situation.
This is as stated in the Euroval report, new construction represents only 10% of the market right now. Specifically, in the Community of Valencia as a whole, last year only 10,134 new residences Compared to 103,118 second hand real estate transactions, it was a good year in which the market grew.
This difference between both market segments can also be seen when: Price:%s. It’s not surprising that new housing always costs more, but before the crisis these differences weren’t all that significant. Specifically, after years of steep ascents, in 2007 HE overflow paid only by those who choose a new apartment was 18%because the average value of this type of property is 176,425 euros, while the value of a second hand house is 149,056 euros.
Right now the difference reaches 70.9%, Since the average cost of a new home in the Valencia Region has already reached 225,316 euros, 27.7% more than before the bubble burst, second-hand apartments are still worth 131,818 euros, 11.6% below the price they had. 2007 is the year the comparison started.
technical requirements
This is not to say that the cost of new housing has not fallen with the recession, but they have done so to a lesser extent, and above all, they have started to recover strongly from 2016. The decline in second-hand goods was more pronounced and prices remained stagnant for longer – hardly any change between 2012 and 2017 – leading to widening disparities.
Euroval’s own report, besides the fact, short supply, This divergence, which is evaluated below the real needs of the market, is also “improving the quality of the housing productOr in other words, the houses that are being built now have little to do with the houses of 20 years ago.
To begin with, because the typology is different. Currently, housing for most of the built second house on the beachmainly targets foreign buyers with greater purchasing power. But even promotions for the habitual residence now include: urbanization with poolmore affordable apartment blocks and VPO for middle and lower middle class families virtually disappeared.
However, according to the general secretary of the Provincial Advertisers Association (Provia), Jesus RosThe thing that most affected this development of prices, increased technical requirements of all kinds produced during this time, including the best isolatesobligation to comply Environmental Requirements in the construction itself or waste treatment. Greater demands that logically affect construction budgets
For one reason or another, it is sufficient to state that: average execution price A development in the province of Alicante In 2007 it was 361 euros per meter square in front 592 euros from projects launched in the first quarter of this year.