Valencia Football Club - Valencia Property Hound

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Valencia Football Club intent on Profiting from Valencia's Booming Property Market

Added: (Sat Dec 09 2006)

In Spain it is quite commonplace to hear the refrain that there is money in bricks (ladrillos) however it is not so commonplace to hear the same said about reinforced concrete. That said, one need only look at a Premier Club such as Real Madrid to see that there is gold if not platinum to be found in the stadia of clubs situated in city centre locations in particular. Real Madrid with the help of the Madrid Town Hall saved itself from almost certain bankruptcy under the Presidency of Florentino Perez by rezoning the club's training ground in 2002. The subsequent sale of which netted the club an incredible €400 million thereby rescuing the mighty Madrid from its precarious financial situation.

At present, Madrid's neighbour Athletico de Madrid is attempting to sell its stadium the "Vicente Calderon" for a mouth watering €350 million much to the fury of its sizable grouping of diehard fans. As club football increasingly becomes more of an international business with all the financial constraints, rigour and transparency that this demands, clubs are increasingly looking to their property assets as a means of both strengthening their financial position as well as clearing outstanding debts.

Valencia Football Club in this regard is no exception.With the property boom in Valencia continuing unabated, the club is moving from its beloved Mestalla to the city's outskirts. Property prices in the city have rocketed by 230% over the past 6 years. The average price per square metre in January 2001 was €758 whereas at present it is in the region of €2,500 per sqm in the city. Prices per sqm in the area where the club presently is (Aragon) are in the region of €3,700 with new developments in the region of €5,000 per sqm.

The area around Mestalla is one of the city's best areas with a mixture of offices and residential property. It has its own Metro stop which is a mere 5 minutes (2 stops) away from the city's main shopping street called Colon St. The America's Cup Marina and the City's City of the Sciences are a mere 5 minute drive away as is the city's beach at Malvarosa.

At present we are sourcing good quality second-hand apartments for clients, the majority of whom are letting these apartments under the Spanish Government's Guaranteed Rental Scheme.

Here you have a link to one of these apartments that we have presently for long term rent:

http://www.kyero.com/property/375515

Good quality second-hand apartments can still be gotten close to the stadium from €210,000 upwards.

Construction of Valencia's new stadium begins next March with completion expected by late 2009. The club intends to apply to stage the final of the 2010 Champions League in the new stadium. The present stadium will be replaced by 7 blocks of apartments, offices and shops with the pitch being preserved as a park. Construction should begin in late 2010. This development should give all property in its immediate vicinity a good push pricewise making the Buy To Rent argument all the more compelling.

Article by Dermot Quinn, Valencia Property Hound Ltd