Authored by the expert who managed and guided the team behind the Spain Property Pack
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What is happening in Valencia’s real estate market? Are prices on the rise or decline? Is Valencia still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers alike, from the heart of Valencia to its beautiful coastal areas. Perhaps you’re curious about these trends too.
We know this because we stay closely connected with local experts and people like you, exploring the Valencia real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) Urban areas gaining appeal will slightly reduce suburban rental yields
In recent years, urban areas in Valencia have become increasingly attractive, leading to a slight decline in suburban rental yields. One of the main reasons is the rising property prices in urban neighborhoods like Ciutat Vella, Eixample, and El Pla del Real, which have seen significant increases, making these areas more desirable for investment and living.
The demand for urban living has surged, with rental prices in areas such as Ciutat Vella reaching €17.08/m² by August 2023. This reflects the growing allure of city life, driven by improved public transportation networks that make commuting easier and more convenient. Valencia's investment in pedestrianized areas, bicycle lanes, and public transport routes has made urban living more appealing.
Additionally, urban infrastructure and development projects, like the undergrounding of the AVE high-speed railroad tracks, have enhanced the city's connectivity and reduced the visual impact of rail tracks. These improvements, along with a demographic shift favoring younger populations who prefer urban lifestyles, have increased demand for urban rental properties.
Sources: Dream Properties Valencia, Valencia Secreta, PwC, Bluekey Homes, Urban Mobility Observatory
2) Tourist-heavy areas will see rising short-term rental yields as visitor numbers increase
In recent years, Valencia has experienced a notable increase in tourist arrivals, which has significantly impacted the short-term rental market. In 2023, the city saw a 9.1% rise in tourist numbers, leading to a total of 420,578 hotel overnight stays and an impressive hotel occupancy rate of 87.5%.
By the first half of 2024, the Comunitat Valenciana welcomed a record 5.3 million international tourists, marking a 19.9% increase compared to the same period in 2023. This surge in visitors has naturally led to higher demand for accommodations, including short-term rentals.
The Valencia Airbnb market has responded to this demand with an average occupancy rate of 70% annually, peaking at over 85% during high seasons. A typical short-term rental in Valencia is booked for 292 nights a year, with a median occupancy rate of 80%, indicating strong and consistent demand.
Sources: Valencia Property, Revalencia, Airbtics
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Affordable housing prices will rise due to strong demand from first-time buyers
In recent years, particularly in 2023 and 2024, we've seen a noticeable increase in the number of first-time homebuyers in Valencia. This trend is largely driven by young adults, especially those aged 25 to 34, who are eager to own their first homes. This age group is a significant part of the population, and their interest in buying homes has been growing steadily.
At the same time, the demand for affordable housing units in Valencia has surged. The real estate market in the region has experienced a notable rise in house prices, with a year-on-year increase of 7.1% in the Comunidad Valenciana. This makes it one of the areas with the highest price hikes in Spain, indicating that affordable housing is becoming more sought after.
Moreover, the supply of affordable housing hasn't kept pace with this rising demand. In fact, the available new housing covers less than 30% of the households being created, particularly in the Valencian Community. This shortage means that there are more buyers than there are homes available, which naturally pushes prices up as people compete for the limited options.
Adding to this, government incentives for first-time buyers have made affordable housing projects even more attractive. Although specific incentives aren't detailed, the overall trend shows that these initiatives are encouraging more people to enter the market, further increasing demand and prices.
Sources: Realtor.com, Dream Properties Valencia, CaixaBank Research
4) El Carmen will attract more investment for its historic charm and trendy atmosphere
El Carmen, a neighborhood in Valencia, has been gaining attention for its historic significance and trendy vibe, leading to increased investment. Over the past decade, property prices in El Carmen have risen significantly. This is largely due to its historical charm, beautiful streets, and closeness to Valencia's city center, making it a desirable place to live and invest.
The neighborhood's popularity among tourists, thanks to attractions like the Central Market and Valencia Cathedral, has boosted real estate transactions. Many property owners are taking advantage of the Airbnb market, turning their properties into short-term rentals and generating substantial income.
Additionally, El Carmen is seeing a wave of renovation and restoration projects. Historic buildings are being beautifully restored, and the city is investing in urban development plans to preserve and enhance the neighborhood's historic charm. This has made El Carmen even more appealing to both residents and investors.
Sources: Revalencia, Aproperties, Valencia for 91 Days
5) Valencia will attract more foreign buyers due to its affordable prices compared to other European cities
Valencia has become a hotspot for foreign buyers due to its affordable real estate prices compared to other European cities. In 2023 and 2024, the city saw a significant increase in demand from international clients, driven by its lower property costs and favorable economic conditions.
For example, the average rent for a one-bedroom apartment in Valencia is much lower than in cities like London or New York. This affordability extends beyond just housing; the overall cost of living in Valencia is about 53.6% cheaper than in New York, making it an attractive option for those seeking a budget-friendly lifestyle.
Surveys and reports from real estate agencies highlight that foreign buyers are increasingly drawn to affordable European cities. Valencia's vibrant cultural scene, pleasant climate, and low cost of living make it a prime destination for international investors. The stability of rental prices and favorable rental yields further enhance its appeal.
Media coverage and expert forecasts predict continued growth in foreign property purchases in Valencia. The city's resilient market, coupled with expected increases in home prices and sales, suggests that foreign investment will keep rising.
Sources: Relocation Services Valencia, CaixaBank Research, MovingTo.io
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6) British buyers will renew interest in Valencia post-Brexit thanks to favorable exchange rates
The exchange rate between the British Pound and the Euro has been quite favorable for British buyers looking at properties in Valencia.
When Brits exchange their money into Euros, they get more bang for their buck, making it cheaper to buy property in places like Valencia. Back in 2022, British demand for Spanish property surged by 72% compared to the previous year, showing how exchange rates can drive interest.
Real estate agencies in Valencia are buzzing with inquiries from British buyers. This uptick in interest is largely due to the favorable exchange rates, making Valencia's already competitive property prices even more appealing.
Valencia often gets a spotlight in the media as a top choice for British retirees or investors. Its sunny climate and affordable property prices make it a magnet for those looking to settle or invest abroad.
With its vibrant culture and lower cost of living compared to other European cities, Valencia stands out as a prime location for British buyers. The city offers a mix of modern amenities and traditional charm, which is hard to resist.
As the exchange rate continues to favor the British Pound, we can expect renewed interest from UK buyers in Valencia's real estate market.
Sources: Spanish Property Insight, Mar Menor Golf Resort, Dream Properties Valencia, Advocate Abroad
7) Asian investors will target Valencia for opportunities as part of a wider European investment strategy
Asian investors are likely to explore opportunities in Valencia as part of a broader European investment strategy for several reasons. First, the overall trend in European real estate investment has been positive, with sectors like logistics and housing showing resilience, as noted in PwC's Emerging Trends in Real Estate 2025 report. This creates a favorable environment for Asian investors looking to diversify their portfolios in Europe.
Additionally, the introduction of new direct flights, such as Air Transat's service from Montreal to Valencia, enhances connectivity and accessibility, making it easier for investors to travel and explore opportunities in the region. This increased connectivity is a sign of growing interest and potential for business and tourism, which can drive real estate demand.
Moreover, the presence of Asian financial institutions expanding their operations in Spain suggests a supportive infrastructure for Asian investors. These institutions can provide the necessary financial services and expertise, facilitating smoother investment processes. The combination of these factors makes Valencia an attractive destination for Asian investors as they look to expand their presence in Europe.
Sources: PwC, Travel Market Report
8) Valencia’s property prices will grow moderately as demand keeps increasing
Valencia's property market has been on a steady rise, and several factors suggest that this trend will continue with moderate growth. In 2024, the average price for residential properties in Valencia increased by 13.06% compared to the previous year, reaching €2,520 per square meter. This rise in prices indicates a growing demand for properties in the area.
One of the key drivers of this demand is the increasing number of foreign buyers. Valencia's popularity as a tourist destination has likely attracted more international investors, even though specific data on foreign buyer numbers isn't available. Additionally, the city's investment in smart city projects, which aim to improve infrastructure and quality of life, is expected to draw more investors.
Urban development projects, such as the undergrounding of AVE high-speed railroad tracks and the creation of a new Town Hall Square, are enhancing Valencia's infrastructure. These projects make the city more livable and attractive, further boosting property demand. Moreover, the rental market is also experiencing high demand, with rental prices increasing by 4.93% in 2024.
Valencia's property market remains relatively affordable compared to other major Spanish cities like Madrid and Barcelona. This affordability, combined with low interest rates in Spain, encourages property investment. While specific demographic data isn't provided, the trend of population growth in Valencia suggests a continued increase in housing demand.
Sources: Indomio, Valencia Secreta, Veros Real Estate Solutions, Statista
We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Valencia will attract more digital nomads, boosting demand for flexible living spaces
Valencia is becoming a hotspot for digital nomads, and there are several reasons for this trend. First, the introduction of Spain's Digital Nomad Visa in 2023 made it easier for remote workers to live and work in the country, including Valencia. This visa allows non-EU/EEA freelancers and remote workers to stay in Spain for up to 12 months, with the possibility of renewal for up to five years.
In 2023 and 2024, Valencia was highlighted as a preferred destination for digital nomads due to its affordable cost of living, excellent internet connectivity, and high quality of life. The city offers a Mediterranean climate and a vibrant cultural scene, making it an attractive place for remote workers looking for a balance between work and leisure.
Moreover, the growth of coworking spaces in Valencia has been significant. Reports from 2023 and 2024 showed a notable increase in these spaces, which are popular among digital nomads. These coworking environments provide the necessary infrastructure and community support that remote workers seek.
Valencia also offers a variety of flexible living spaces, such as co-living accommodations, which cater specifically to the needs of digital nomads. These spaces combine comfortable living arrangements with coworking facilities, making them ideal for those who work remotely.
Sources: Holafly, Citizen Remote, Urbemar
10) La Saïdia will become popular for its blend of traditional and modern living
La Saïdia is quickly becoming a sought-after neighborhood in Valencia, offering a unique mix of traditional and modern living.
With property prices in central Valencia skyrocketing, many buyers are turning to La Saïdia for more affordable options. This neighborhood provides a perfect balance between budget and lifestyle, making it an attractive choice for those looking to invest in a vibrant area.
Recent investments in infrastructure and public transport have made La Saïdia more accessible, boosting its appeal to both locals and expats. Renovation projects are popping up everywhere, blending traditional architecture with modern amenities, creating a living experience that's hard to resist.
La Saïdia's charm hasn't gone unnoticed, as it's been featured in various lifestyle and real estate publications. The neighborhood is buzzing with new cafes, restaurants, and cultural venues, creating a lively atmosphere that attracts community-minded individuals.
The area is seeing an influx of young professionals and families, drawn by the promise of a balanced lifestyle that combines historical heritage with modern conveniences. Local government initiatives are also playing a role, promoting cultural heritage while enhancing modern living aspects.
As La Saïdia continues to evolve, it's clear that this neighborhood is on the rise, offering a dynamic blend of the old and the new that appeals to a diverse range of residents.
Sources: Statista, Revalencia, Suitcase in Spain
11) Suburban property prices may dip slightly as urban living gains appeal
Valencia's real estate market is buzzing with urban areas becoming the hot spots.
In 2024, house prices in Valencia city jumped by 11.2%, showing that people are eager to live in the city. Some neighborhoods saw even bigger spikes, proving that urban living is in high demand.
Why the shift? Well, city life offers unbeatable amenities and services that people are willing to pay extra for. It's not just about the homes; it's about the lifestyle.
Valencia is also investing heavily in its urban infrastructure. With a €69 million loan for zero-emissions buses, public transport is getting a major upgrade. This makes city living even more appealing, as it cuts down the need for long commutes from the suburbs.
Higher rental yields in urban districts are another draw. Investors see better returns in the city, which is pulling more people into these vibrant areas.
Some suburban areas might see a slight decline in prices as urban living becomes more desirable.
Sources: Dream Properties Valencia, EIB Press Release
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12) Central Valencia will see higher rental yields as more people choose renting over buying
Rental yields in central Valencia are expected to increase as more people choose renting over buying. This trend is largely driven by the rising rental demand in the city. In 2023, the average rental price in Valencia saw a significant increase, reaching €14.14/m², which was a 35.31% rise from the previous year. This surge in rental prices indicates a growing demand for rental properties.
Another factor contributing to this shift is the increasing property prices, which make buying less affordable. As of the first quarter of 2024, the median price for apartments was €2,070 per square meter, and houses averaged €1,750 per square meter. These rising costs push potential buyers towards renting, as it becomes a more financially viable option.
Additionally, economic reports have highlighted a shift towards a rental market in Valencia, driven by evolving market dynamics and government interventions. This shift is expected to continue as more people find renting more attractive due to economic uncertainty and increasing property prices.
Sources: Bluekey Homes, Advocate Abroad
13) Home office spaces will boost property desirability as remote work becomes more common
In recent years, we've seen a significant increase in the number of remote workers, especially in regions like Valencia. By 2023, many communities in Spain, including Valencia, experienced a noticeable rise in remote work, which has naturally led to a higher demand for properties with dedicated office spaces.
Surveys from 2024 showed that a substantial portion of people with higher household incomes in Spain were working remotely. This trend indicates a growing need for home office spaces, as more people seek environments that support their work-from-home lifestyle.
Additionally, the rise of remote work has had a notable impact on housing markets. A study from the Federal Reserve Bank of San Francisco found that a significant portion of the increase in house prices from 2019 to 2022 was due to the uptake in remote work, highlighting the value placed on homes with office spaces.
Sources: Statista, Idealista, Remote People
14) Property interest in Malvarrosa Beach will grow as more people desire beachfront living
Malvarrosa Beach is becoming a hotspot for property interest, and there are several reasons why this trend is expected to continue. First, the rising property prices in beachfront areas are a clear indicator of high demand. For instance, a terraced chalet facing the promenade at Malvarrosa Beach is priced at €474,000, showing that people are willing to invest in this desirable location.
Another factor is the increased tourism in Valencia, especially after it was named the European Green Capital in 2024. This recognition has made the city more appealing, drawing more tourists who often seek short-term rentals near the beach. The strong demand for these rentals is reflected in the high rental yields in areas like Poblats Marítims.
Moreover, urban development projects are enhancing Malvarrosa Beach's infrastructure, making it more attractive to potential buyers. New residential areas with amenities like swimming pools and community terraces are being constructed, adding to the beach's appeal. Improved public transportation links also make it easier for people to access the area, further increasing its attractiveness.
Sources: New Building Spain, Euronews, Aproperties, Dream Properties Valencia
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Long-term rental yields will stabilize as demand for permanent city residences grows
Valencia's population has grown from 790,201 in 2015 to 839,770 in 2024.
This increase shows that more people are moving to the city, driving up the demand for housing. It's not just locals; Valencia is becoming a hotspot for international residents too. Many people from abroad are choosing to make Valencia their home, which means more demand for permanent housing.
Interestingly, there's been a 12% drop in short-term rental options. This suggests that people are leaning towards finding stable, long-term places to live rather than just temporary stays. It's a shift that points to a growing preference for settling down in the city.
With more people looking for permanent homes, long-term rental yields are expected to stabilize. This is good news for potential property buyers who are considering investing in Valencia's real estate market.
Valencia's appeal isn't just about the numbers. The city's vibrant culture, sunny weather, and beautiful architecture make it an attractive place to live. These factors contribute to why more people are choosing Valencia as their permanent residence.
As the city continues to grow, the real estate market is likely to see more stability, making it a promising option for those looking to invest in property. Valencia's charm and lifestyle are drawing people in, and the trend shows no signs of slowing down.
Sources: World Population Review, Idealista
16) Better public transport will make outer districts more accessible and appealing to buyers
Valencia's improved public transport is making outer districts more appealing to property buyers.
Thanks to significant investments in transport infrastructure, getting around Valencia is easier than ever. The European Investment Bank has played a big role by funding the expansion of the zero-emissions bus fleet and modernizing the Metrovalencia network. These upgrades are crucial for better connectivity, making it simpler for people to move between the city and its outskirts.
Commuting from outer districts is now a breeze with the reopening of commuter train lines and the introduction of a road transport service featuring free buses. This means reduced travel times to the city center, which is a huge plus for those who work in the city but prefer the tranquility of less crowded areas.
Buyers are increasingly looking for properties with good transport links. As Valencia continues to enhance its public transport services, these outer areas are becoming more desirable. This trend is supported by the city's Sustainable Urban Mobility Plan, which focuses on improving public transport quality and cutting carbon emissions.
Looking at other cities like Vancouver, we see that better transport links can significantly boost property demand. Media coverage of Valencia's transport projects highlights their expected positive impact on real estate, making outer districts even more attractive to potential buyers.
Sources: EIB Press Release, Urban Mobility Observatory, EIB Press Release
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.