Whirlpools World

As cranes and new construction sites have reappeared across the Costa Blanca in the last 18 months, a new survey suggests that the Valencia region accounts for 19 per cent of the total of Spain´s unsold new properties, and that the possibility of renting them out is not being seized.

The figure stands at over 97 thousand of the half-million plus empty buildings in the whole of Spain, with a number of new construction sites on the Costa Blanca already being slowed down or even suspended, as the take up is not what was expected last year.

The survey backs up figures from Spanish notaries who report a buoyant market in second-hand sales, especially in tourist areas, but a slowing-down in new property deals.

After Valencia, the largest figure of empty new constructions is in the north-east region of Catalunya at 16 per cent, closely followed by Andalucia in the south at 15 per cent.

Housing expert, Ferran Font, said that the large number of new empty properties was also contributing to rent rises across Spain, which still has a large number of unused housing, as construction still continues, and that an opportunity is being missed.

Font says that promoters have got themselves into a bind where they won´t even consider getting some rental income for unsold properties, because they are worried about what kind of condition the home will be left in, once a lease period ends. Defaulting on rentals is another concern.

His survey says that the total of empty new properties that are not rented out in the Valencian region means that around six million euros of rent is not gathered in each year, at a regional average of over 11 thousand euros per property per annum, which with rent hikes, is 16 per cent more compared to 2018 average levels.

The Valencia rental possibility is a mere snip compared to the possibility of a Madrid property earning over 20 thousand euros per annum, and the Balearic Islands standing at 16 thousand euros.

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