Added: ( July 2008)
Formula 1 to Change the City Property Market Forever
The arrival of F1 in Valencia next month will leave its mark on city property prices in the short to mid term. If as some commentators predict and the most popular motorsports' event stays indefinitely in the city then those who have bought property especially properties near the F1 circuit and the city's new marina will be on to a winner.
City property prices have almost quadrupled since the start of 2001. As of 31 st December 2000, the average price per sqm in the city was €785.34 whereas at the end of 2007 it stood at €2,849. The area closest to the F1 circuit and city marina namely “Camins al Grau” was in pole position last year re annual city price increases. Prices in the city rose on average by 3.7% with the port area rising ahead of inflation at 4.9%. The property type that offers the best upside re future capital appreciation gain is undoubtedly old style apartments particularly those in need of total renovation. Basically it's a case of supply and demand with new style apartments far outweighing old style in the port area of the city. Moreover from the buyer's viewpoint the old style properties are far more attractive with their tall ceilings and spacious interiors as well as features such as ornate cornices. As well as specialising in the sourcing of F1 property for clients we also offer a full range of renovation services as well as apartment rentals for the week of F1.
The “European Grand Prix” which takes place in Valencia on the 24 th August with testing and pre qualifying on the 22 nd and 23 rd will bring over 112,000 paying spectators to the city and an estimated global tv audience of over 500 million. Such is the global reach and cachet of F1 that the city will reach a level of global presence heretofore unimaginable. The truly “prime F1 areas” will attract seriously wealthy buyers, buyers for whom the notion of “intrinsic value” is of no importance as possessions become mere showpieces and status symbols. With time, all the properties on Dr. J J Domine street which looks right over both the “T” of the marina where the megayachts are moored and the circuit itself could well become the city's most sought after and as a result Valencia's most expensive properties. At the moment such properties with one balcony and in need of total renovation can be bought for in the region of €250,000 while apartments in good condition with 2 balconies can be bought for around half a million Euros. The communal rooftops of these buildings are renting at between €20,000 and €40,000 for the week of the grand prix with event companies using the rooftops as V.I.P. enclosures with all the associated services provided even air conditioning.
The Valencian government intends over the next ten years to give a major facelift to the whole port area of the city. One idea being mooted is to run the sea via the city's old riverbed right up to where the city's emblematic “City of the Sciences” is and to make it navigable with moorings along the river bank as well as bars and restaurants. The arrival of the A.V.E. high speed train from Madrid in 2010 will cut travel time from Spain 's capital city from its present 3.5 hours to an incredible 1 hour 25 minutes with the train reaching speeds of up to 350 kmph. This should result in increased numbers of visitors to the city as well as give people working in Madrid the opportunity of living in Valencia where property prices are a good 1/3 cheaper and the quality of life is far superior to that of landlocked Madrid .
Valencia with its year round sunshine, beautiful historic centre, largest marina in the med, excellent transport links, largest indoor aquarium in Europe , top class football and formula one urban street circuit is hard to beat when it comes to choosing a second home especially an investment property given the upside F1 will bring to the city property market.
All the more reason to use the services of the city's “Premier Property Search and Property Investment Company” namely Valencia Property Hound so as to find the best property for your money.
Article by Dermot Quinn, Valencia Property Hound Ltd
