There are many people who have visited our points of sale in recent weeks and have asked us the question … Will the price of new construction homes in Valladolid go up?
We have a lot of information in mind and the decision to buy a new-build home generates uncertainty due to the different news we receive.
Market reports from different renowned entities give us different year-on-year growth data for 2021, between 2 and 5%, depending on the parameters of the analysis.
We understand that it is necessary to argue the reasons why we understand that the new construction market has an upward trend.
Reasons for the increase in demand for new construction
- The number of homes being marketed is high but the increase in demand is offsetting the supply, for now. The current production of new construction housing is covering the structural demand. The construction ratio per 1,000 inhabitants is recovering at high rates.
- There is no stock of finished housing: Buying pressure in recent years has depleted the stock of finished housing so that, unlike in 2007, there is currently no stock of finished product for sale. The new product manufactured in recent years has been made to order (purchase off plan) and practically everything has been delivered
- The supply of finalist land is scarce: In recent years, hardly any new finalist land has been manufactured, so the supply in areas of demand is very scarce.
- The client values the current construction systems and their energy efficiency: The clients are opting for the new construction, since the new construction systems offer them great benefits in energy consumption, which during the life of a home is a lot of money that they save
- Low interest rates: Credit continues to flow at very low interest rates, and as we are transferred it is easy for it to remain at these levels for a long time and therefore making the purchase a very interesting option, when financing is necessary or to invest in living place
- The health crisis has brought new habits: Increase in searches for houses with terraces and gardens vs. traditional flats. Teleworking creates new space needs at home. Larger homes are sought.
Reasons for the increase in new construction prices
- Raw materials have increased in cost: Construction costs have increased by more than 26% year-on-year, especially due to the sharp rise experienced by the prices of wood, aluminum and steel, which has made the average prices of homes of new construction, that are not contracted tend to rise.
- The cost of maritime container transport: In this sense, it is worth noting the rise of more than 350% in the WCI (the world container index) over the last few months, affecting the delivery time of raw materials and the cost at their destination.
- The cost of labor: The previous crisis “eliminated” from the market a high percentage of specialized labor that had to seek accommodation in other sectors. This is why skilled labor is highly valued today.
You have to choose solvent projects so as not to be affected