HOUSE prices have soared to a record high in the Valencian Community according to the property portal idealista due to supply being unable to match demand.
The average regional cost of a home per m2 rose by 16% during 2024, to €2,061.
In Valencia City, the average price has increased by 24% over the last year.
The price per m2 is at €2,836- a historical high for the region’s capital, according to idealista.
All districts of the city have recorded year-on-year price increases.
The largest is that registered by La Saidia, where sellers ask 36.7% more for their homes, followed by Quatre Carreres (30.9%), Camins al Grau (29.1%) and Rascanya (26.8%).
In terms of sheer cost, the prices are recorded in L’Eixample (€4,158 euros/m2) followed by Ciutat Vella (3,875 euros/m2).
In Valencia province, on average, costs have increased by 14.6% over the last year, reaching an average of €1,602 per m2.
Alicante province, including the Costa Blanca, has seen prices rise an average 15%.
The most spectacular rise is in the inland municipality of Algorfa in the south of the region which is popular with expats.
Sellers are demanding 43.3% more for their homes than a year ago.
Other big hikes are in Alcalalí (36.6%) and San Juan de Alicante (27.1%).
But there are price decreases recorded in Rafal (-13%) and Gata de Gorgos (-12.9%).
Alicante City has experienced an 18.2% year-on-year increase in house prices, up to €2,265 per m2.
Francis Iñareta, spokesperson for idealista, said: “Over the past 12 months we have seen the consequences of a perfect storm in the buying and selling market with lower supply.”
“The criminalisation of housing construction in recent years, the lack of foresight in land development, the absence of political dialogue that seeks solutions, the populist noise around housing, bureaucratic labyrinths, the significant shortage of labour, the disappearance of construction companies and specialised companies and the demographic increase have left the most dynamic markets in the country without housing,” he added.
Iñareta added that prices will continue to rise if supply does not increase.
