The Dana that He hit the province From Valencia in October it was so violent, it caused so many damage and affected so many people, that in the real estate agencies of the area they feared that the market was upside down. “It was thought that it was going to sink into the most devastated areas,” Recognize The sector. Reality has been another. The region has not only maintained The tension Between supply and demand suffered before the Dana, but has added an extra factor: Damage who suffered hundreds of households.
The Association of Real Estate of the Valencian Community (ASCival) has published A report It helps to better understand how the market has responded.
“We saw that the demand was strong”. Nora García Donet, president of ASCival, acknowledges that the market response after the Dana has even surprised the sector. After the rains they feared a puncture in the market, but reality has been quite different: the demand remained high while the offer (which in many cases was already subject to intense pressure before disaster) It was marked by the loss of households razed by rain and mud.
“In the first moments it was thought that the market was going to sink into the areas most devastated by the Dana, but soon we saw that the demand was strong in a context in which many homes had been inoperative, and this trend is the one that has been maintained over time,” Donet points out. That equation has ended up moving to another key element: prices.
A percentage: 18%. The report Ascival provides a fundamental fact to understand the drift of the market: the price of housing has increased by 18% in the municipalities hit by the DANA. More specifically 18.8% in the sale market and 18.1% in the lease. Translated to counting and sound money that means that houses for sale in the affected areas cost 171,428 euros while the rentals are around 800.
The provinces has deepened Something else and calculates that a floor for sale in the towns razed by the downpours has increased, on average, about 32,000 euros. In the case of homes for rent, the price increase would be at 145 euros per month. All compared to the values of seven months ago.
What is the reason? The same that usually causes price increases in normal conditions: the imbalances between supply and demand. In Your study Ascival indicates a growing decoupling between both both in the sale market and in the rental. In the first case, the association calculates that the demand for houses for sale has shot 22% while the offer has fallen by 31.3%. In the second case, that of the Property Market to lease, the demand has shot 27.1% with the offering supply (38%).
“Little more than six months after the devastating consequences of the DANA, the real estate situation in the affected municipalities follows the same trend of price and demand and contribution trend and contrition of the housing supply as in the rest of the Valencian territory,” Point out As a conclusion the Asicval report.
That reality is verified by the region’s own agencies. More than half (54.3%) ensures that the supply of housing for sale has decreased and almost 90%(87.5%) have noticed price orange blossom. 58% also believe that there is more rental demand, while 96% consider that the supply has been maintained or dropped.
The role of the Dana. The report It does not detail to what extent the increase can be related to the effect of the DANA or its influence on supply and demand, although it does slide some interesting data. The main one is that most people interested in buying or renting a house in the affected municipalities are locals. This is perceived at least by the agencies, which also ensure that customers do not seem especially interested in knowing whether or not the properties are in flood areas, but they do prefer apartments in height buildings.
The tension in the market is not new, nor has it emerged after the October disaster. In 2024 Idealista published A report in which he already pointed out that the district with the greatest pressure in the demand for housing in Spain was in the Central-Horte de Trenor area, in Torrent. During the last months the house It has become more expensive Also in the whole of the province of Valencia, not only in the areas affected by the DANA. What the torrential rains did was sweep hundreds of homesdamaging them or leaving them temporarily uninhabitable.
Image | Manuel Pérez García and Estefania Monerri Mínguez (Wikipedia)
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