Valencia: perspectives and benefits of investments

Valencia: perspectives and benefits of investments

Valencia is Spain’s third-largest city on the Mediterranean coast. Its favourable climate, beautiful sandy beaches, and rich cultural heritage make it a popular destination for tourism, seasonal holidays, and permanent residence. The city is known for its museums, art galleries, architectural monuments, and parks. Among its main attractions are the Valencia Cathedral, the architectural complex “City of Arts and Sciences,” and Lonja de la Seda, a complex of buildings of the former silk exchange of the XV–XVI centuries.

Valencia is also a major industrial and technological centre that attracts highly skilled professionals from all over the world. In recent years, it has become one of the main developers and manufacturers of solar panels and electric cars in Spain. In addition, Valencia is the country’s commercial and business centre, providing a wide range of opportunities for entrepreneurs and investors. Prices for real estate in Spain are relatively affordable in the region, and demand for apartments and villas is constantly growing. Thanks to the growing number of tourists and expats, investing in Valencia property can be a lucrative and stable source of income.


Property prices in Valencia

As of August 2023, the cost per square metre of housing was €2,800, which is 6.22% more than a year earlier. Housing prices in Valencia range from €1,335 to €3,090 per square metre. The most expensive properties are in the L'Eixample area, and the cheapest are in Pobles del Nord. In other neighbourhoods, prices are distributed as follows:

  • Camins al Grau – 2,325 €/m2;
  • El Pla del Real – 2,830 €/m2;
  • Algirós – 2.245 €/m2;
  • Ciutat Vella –  2,905 €/m2;
  • Ciutat Vella – 1,415 €/m2.

The average size of apartments for sale in Spain is 113 sq. m for the region, and prices range from €260,000 to €1 million. For villas, these figures are 234 sq. m and €375,000, respectively.

For potential property investors, it is important to note that rental rates in Valencia have increased by 23% over the last year. This is a significant argument in favour of buying a home in this city for subsequent renting.

The best neighbourhoods in Valencia for buying investment property

Among the neighbourhoods that are particularly popular for buying and renting are the following:

  • Ciutat Vella. This is part of the Old Town, the historical and cultural centre of Valencia, with numerous restaurants, cafes, and shops. The most highly liquid and profitable properties here are flats with three bedrooms. On average, such an object can be bought for €455,000. If rented out for short-term rentals on popular platforms, it will bring about €54,500 per year with a yield of 12%.
  • Ruzafa. A fashionable and prestigious neighbourhood. It boasts a concentration of designer clothing boutiques, concert venues, and gourmet restaurants, as well as a bullfighting arena. The best investment properties here are two-bedroom apartments, the average price of which is currently €243,000. The annual rental income is €38,500, and the gross yield is 15.89%.
  • Benimaclet. An authentic neighbourhood located near the two main universities of Valencia, Universidad de Valencia and Universidad Politécnica de Valencia. Here you can find unusual architectural buildings, creative bars and restaurants. Investors should pay attention to flats with three bedrooms, which can be bought for €250,000. The annual income when renting them out is €38,500, a profit of 15.32%.
  • Jesús. An area consisting of four neighbourhoods. Here is the market of the same name and high-speed train station, Ave Joaquín Sorolla. The gross rental yield here is 21.36%, which is the highest in the city. The most popular properties are two-bedroom apartments, which can be bought for €160,000. The annual rental income can reach €34,000.
  • Mont-Olivet. Another top location for investors with inexpensive property and a high return on investment. The annual gross rental yield for a two-bedroom flat is €36,000, and the profit margin is 18.08%. This property can be purchased for an average of €190,000.
  • Ayora. The area where the most popular properties are two-bedroom apartments. Their average cost is €180,000, gross yield for investors is €32,500, and profitability is 17.93% per annum.

Profitable purchase of a home in Spain

Our aggregator has an extensive property database that is constantly updated. The site offers fresh listings from verified agencies and developers and provides a large selection of houses in Spain in different areas of Valencia. You can customise your search by several parameters: price, area, number of rooms, and presence of a swimming pool. A detailed description and photos accompany each advert, which allows you to get an idea of the unit already at the search stage. Now is the best opportunity to invest in foreign property. Start studying offers to buy houses, flats, or villas in Spain today.

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