House purchases led by ‘locals’ while non-EU property buyers fell last year in Valencia

The non-EU market has decreased in importance.

The National Federation of Real Estate Associations and the Association of Valencian Community Real Estate Agents conducted a joint study of 69 regional agencies and their real estate transactions.

The company said that 62.3% deals were for primary or secondary homes while just under 29% were for investments.

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Property purchases by foreign buyers have fallen, particularly from countries outside of the EU.

Valencian buyers of primary residences represented 21.81% in comparison to 34.23% by 2023.

For second homes, the total was 38.4%. This is down from 62% of 2023. Those bought as investments went from 58.8% to 23%.

Non-EU purchasers, including those from UK, will account for 10% of the primary residence transactions by 2024.

For second homes this fell from 36% in 2023 to 11.5% and for purchases made as investments, it went from 38.2% to 9.5%.

Nora Garcia Donet is the president of Asicval. She said that foreign buyers are also affected by the lack of availability for second-hand homes. They can hardly find any on real estate portals.

She added, “However local investors have quicker access to opportunities than real estate professionals and we’re talking about individual private investors.”

The average majority buyer profile in 2024 consisted of a Valencian resident, aged on average 40.5 years. The main buyers group was between 30-40 years.

Couples continue to dominate, but in the past year, couples without children (42.1%) were more prevalent than couples with children (38.2%).

Renting was the primary reason for buying a home(35.4%, compared with 22.6% by 2023) and leaving parental property(30.2%, compared with 16.4% by 2023).

The number of homeowners who have changed homes has decreased (34.3% to 60.8%).

The sharp fall in replacements reflects the price increase and lack of supplies, while home purchase for first timers is on the rise. The young and families that have the financial support drive this trend.

Nora Garcia Donet said: “At this moment, those with the money to buy are buying. We have people saving by living at home, to others who get family assistance for the downpayment or who want to replace their rent because rental prices are skyrocketing.”

In these cases, a loan is always more profitable. This is especially true with the recent drop in interest rates. “We also have individuals who choose to invest in the housing market as a secure bet, as the profitability of the market increases,” she added.

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