20,000 homes must be built in Valencia Region to satisfy increasing demand
According the Bank of Spain, Valencia Region needs the construction of 20,000 new homes to accomplish with the needs of the increasing property market in the eastern region. The existing stock of already built properties is not a problem according the main financial institution of Spain.
20,000 new homes must be built since now until the year 2029
The Mediterranean region is one of the areas of Spain with a higher amount of non-sold residential properties in Spain. In relation with this, it has been estimated that around 85,000 new-built residential properties remain for sale in the region. Despite this, the Bank of Spain has declared recently that the characteristics of the offer does not match properly with the interests of potential buyers. In fact, the institution considers that 20,000 new homes must be built since now until the year 2029.
Also, has been detected by the Bank of Spain a clear movement from the banking sector in this regard, as the flow of capital has increased significantly this year in the region, especially in Valencia province and coastal areas of Alicante. The confidence of the financial sector in relation with the property market is improving slowly but firmly.
For the rest of the country, it has been forecasted the construction of an amount between 55,000 and 220,000 new properties per year until 2030. In this growth, Valencia Region will have an important role due its high demand from foreign citizens in Alicante province mainly.
Source: Levante-emv.com/Bank of Spain.