€240,000 for an unrenovated 'paco' flat in Castellón, Spain
€240,000 for a dated flat in Castellón, Spain: does it reflect the market price or the bubble in unrenovated second-hand housing?
English · Original discussion in Spanish · Published
€240,000 for an unrenovated 'paco' flat in Castellón, Spain
How much is a flat that looks like it came straight out of a 1970s furniture catalogue worth? In Castellón, the answer is €240,000. A listing on Idealista has reignited the debate over second-hand housing prices in Spain: the property is being sold unrenovated, in the style some call 'paco' – solid wood furniture, terrazzo, an outdated layout – and, according to those who have seen it, it could even trigger what one commenter dubbed 'paco-depressive disorder'.
What stands out is not just the condition, but the price. For €240,000, the buyer gets a flat in need of a full renovation, in a city where, according to the data, the main economic drivers are the ceramics industry, public sector jobs and, to a lesser extent, the orange harvest. Hardly a high-salary hub.
Those familiar with the Spanish property market argue that 80% of the flats for sale look similar. In other words, the second-hand housing stock is largely outdated, and prices do not reflect the cost of the necessary renovation. The listing is honest: it is not selling a renovated flat, but a project. 'They don't sell it to you renovated, they propose it so you can do it yourself,' is a recurring comment.
The result: a flat that, once you add the €240,000 purchase price and the €40,000-60,000 renovation, comes dangerously close to the price of a new build. The paradox is that, in many cities, old, unrenovated housing stock is sold as if time had stood still. And the buyer, resigned, pays the entry price thinking that, at least, they will have a flat 'with life'. Or maybe not.
How much is a flat that looks like it came straight out of a 1970s furniture catalogue worth? In Castellón, the answer is €240,000. A listing on Idealista has reignited the debate over second-hand housing prices in Spain: the property is being sold unrenovated, in the style some call 'paco' – solid wood furniture, terrazzo, an outdated layout – and, according to those who have seen it, it could even trigger what one commenter dubbed 'paco-depressive disorder'.
What stands out is not just the condition, but the price. For €240,000, the buyer gets a flat in need of a full renovation, in a city where, according to the data, the main economic drivers are the ceramics industry, public sector jobs and, to a lesser extent, the orange harvest. Hardly a high-salary hub.
Those familiar with the Spanish property market argue that 80% of the flats for sale look similar. In other words, the second-hand housing stock is largely outdated, and prices do not reflect the cost of the necessary renovation. The listing is honest: it is not selling a renovated flat, but a project. 'They don't sell it to you renovated, they propose it so you can do it yourself,' is a recurring comment.
The result: a flat that, once you add the €240,000 purchase price and the €40,000-60,000 renovation, comes dangerously close to the price of a new build. The paradox is that, in many cities, old, unrenovated housing stock is sold as if time had stood still. And the buyer, resigned, pays the entry price thinking that, at least, they will have a flat 'with life'. Or maybe not.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (11 replies).
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