Authored by the expert who managed and guided the team behind the Spain Property Pack
Yes, the analysis of Valencia's property market is included in our pack
If you're considering buying property to rent out in Valencia, understanding rental yields is the first step to making a smart investment.
This guide breaks down gross and net yields, neighborhood differences, and the costs that eat into your returns.
We constantly update this blog post to reflect the most current market conditions in Valencia.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Valencia.
Insights
- Valencia's average gross rental yield sits at around 5.8% in early 2026, notably higher than Madrid's compressed yields of 4.5% to 5%.
- The gap between Valencia's highest-yield and lowest-yield neighborhoods reaches 2 percentage points, from roughly 3.8% in prestige areas to 5.8% in renter-dense zones.
- Landlord costs typically consume 1.3 to 2.3 percentage points of gross yield, leaving most investors with net returns between 3.5% and 4.5%.
- Studios and one-bedroom apartments in Valencia often yield 0.5 to 1.5 percentage points more than larger family units.
- Valencia's residential vacancy rate hovers around 3% to 5%, one of the tightest in Spain.
- Premium micro-areas like Ciutat de les Arts i de les Ciències see yields compressed to around 3.8% because purchase prices climb faster than rents.
- Benimaclet offers gross yields near 5.3% thanks to affordable entry prices and consistent student and young professional demand.
- Projects like Parque Central Phase 2 and the La Marina tech hub could push rents up by 5% to 10% in nearby neighborhoods.
What are the rental yields in Valencia as of 2026?
What's the average gross rental yield in Valencia as of 2026?
As of early 2026, the average gross rental yield in Valencia city is approximately 5.8%, meaning a typical property returns about 5.8% of its purchase price in annual rent before expenses.
Most residential properties fall within a gross yield range of 5% to 6.5%, depending on location and unit type.
Compared to other major Spanish cities, Valencia's gross yield is healthier than Madrid (often 4.5% to 5%) but slightly below some smaller regional markets.
The biggest factor shaping Valencia's gross yields is the gap between where prices have risen and where rents have followed, with premium neighborhoods seeing compressed yields because prices climbed faster than rents.
What's the average net rental yield in Valencia as of 2026?
As of early 2026, the average net rental yield in Valencia is approximately 4.0%, which is what landlords keep after paying taxes, fees, maintenance, and management costs.
The typical gap between gross and net yields runs between 1.3 and 2.3 percentage points, so a 5.8% gross yield usually lands somewhere in the 3.5% to 4.5% net range.
The costs that eat most into your gross yield are management and leasing fees (often 8% to 12% of rent), followed by maintenance reserves and the IBI property tax.
Most standard investment properties deliver net yields between 3.5% and 4.5%, with the lower end typical for hands-off investors and the higher end for self-managers.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in 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.
What yield is considered "good" in Valencia in 2026?
Local investors in Valencia generally consider a gross rental yield of 6% or higher to be "good," providing a comfortable margin above financing costs and unexpected expenses.
The threshold separating average from high-performing properties sits around 6.5% gross, though reaching this usually requires smart neighborhood selection or targeting smaller units.
How much do yields vary by neighborhood in Valencia as of 2026?
As of early 2026, gross rental yields in Valencia range from roughly 3.8% in premium micro-areas to about 5.8% in renter-dense neighborhoods, a swing of nearly 2 percentage points.
The highest-yield neighborhoods combine strong renter demand with moderate prices: Benimaclet, Camins al Grau, and non-trophy parts of Quatre Carreres like En Corts or Malilla.
The lowest-yield areas are prestige pockets where buyers pay premiums: Ciutat de les Arts i de les Ciències or historic center zones like El Mercat and La Seu.
Yields vary so much because purchase prices swing more dramatically than rents, so "emotional" pricing in sought-after areas pushes yields down.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Valencia.
How much do yields vary by property type in Valencia as of 2026?
As of early 2026, gross rental yields across property types in Valencia range from about 4.5% for large luxury units to over 6.5% for well-located studios and one-bedrooms.
Studios and one-bedroom apartments deliver the highest average gross yields because smaller units command higher rent per square meter and attract deep demand from singles and students.
Large four-bedroom apartments and penthouses deliver the lowest yields, as purchase prices rise faster than the rents tenants will pay.
The key reason: rent per square meter drops as unit size increases, while sale prices often stay flat or rise for larger units.
By the way, you might want to read the following:
What's the typical vacancy rate in Valencia as of 2026?
As of early 2026, the average residential vacancy rate for long-term rentals in Valencia city is approximately 3% to 5%, or roughly two to three weeks per year for a well-priced unit.
Vacancy rates range from under 3% in sought-after zones near universities and transit to around 5% in less connected areas.
Valencia's low vacancy is driven by structural imbalance: renter demand keeps growing while new supply remains constrained.
Compared to Spain's national average, Valencia's vacancy is on the tighter end, reflecting one of the country's hottest rental markets.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Valencia.
What's the rent-to-price ratio in Valencia as of 2026?
As of early 2026, Valencia's average rent-to-price ratio is approximately 0.49% per month (5.8% annually), meaning for every €100,000 invested, expect around €5,800 in annual rent before costs.
A monthly ratio of 0.5% or higher (6% annualized) is considered favorable for buy-to-let investors, directly corresponding to "gross yield."
Compared to Madrid or Barcelona, where ratios often dip below 5%, Valencia offers better cash-on-cash returns without sacrificing liquidity.
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.
Which neighborhoods and micro-areas in Valencia give the best yields as of 2026?
Where are the highest-yield areas in Valencia as of 2026?
As of early 2026, the top highest-yield neighborhoods in Valencia are Benimaclet, Camins al Grau, and non-trophy pockets of Quatre Carreres like En Corts and Malilla.
In these areas, investors can expect gross yields in the 5.3% to 5.8% range, with some properties pushing above 6%.
What they share: accessibility to jobs, transit, and universities without the "premium address" markup.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Valencia.
Where are the lowest-yield areas in Valencia as of 2026?
As of early 2026, the lowest-yield neighborhoods include Ciutat de les Arts i de les Ciències, premium Ciutat Vella pockets like El Mercat and La Seu, and waterfront prestige zones.
These areas typically see gross yields in the 3.5% to 4.2% range, well below the city average.
The main reason: property prices reflect prestige demand, pushing costs higher while rents cannot rise proportionally.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Valencia.
Which areas have the lowest vacancy in Valencia as of 2026?
As of early 2026, the neighborhoods with the lowest vacancy rates in Valencia are Benimaclet, Camins al Grau, and areas adjacent to La Marina.
In these areas, landlords typically experience vacancy rates below 3%, meaning less than two weeks empty per year.
The main demand driver: proximity to employment nodes, universities, and transit connections.
The trade-off: competition for properties pushes purchase prices higher, potentially compressing yields even as occupancy stays solid.
Which areas have the most renter demand in Valencia right now?
The neighborhoods with the strongest renter demand in Valencia are Benimaclet, Camins al Grau, and areas near La Marina.
The profiles driving demand: young professionals aged 25 to 40, university students, and remote workers relocating for Valencia's quality of life.
In these high-demand areas, well-priced listings typically get filled within one to two weeks.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Valencia.
Which upcoming projects could boost rents and rental yields in Valencia as of 2026?
As of early 2026, the top projects expected to boost rents are Parque Central Phase 2, the La Marina "46 Valencia Mediterranean Tech Hub," and the Valenciaport north expansion.
Neighborhoods most likely to benefit: Jesús and areas near Joaquín Sorolla station, coastal districts near La Marina, and port-connected eastern zones.
Investors might realistically expect rent increases of 5% to 10% in affected neighborhoods over the next two to four years.
You'll find our latest property market analysis about Valencia here.
Get fresh and reliable information about the market in Valencia
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What property type should I buy for renting in Valencia as of 2026?
Between studios and larger units in Valencia, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments outperform larger units in both yield (often 0.5 to 1.5 percentage points higher) and occupancy speed.
Studios typically deliver gross yields around 6% to 7% (€11 to €13/m² monthly, $12 to $14 USD), while two- to three-bedroom units fall in the 5% to 5.5% range.
The reason: Valencia has a deep pool of singles, students, and young professionals who need affordable small units, while larger apartments face a smaller tenant pool.
That said, larger units can work better in family-oriented neighborhoods with good schools, where tenants sign multi-year leases and turnover costs are minimal.
What property types are in most demand in Valencia as of 2026?
As of early 2026, the most in-demand property type in Valencia is the two-bedroom apartment, hitting the sweet spot for couples, sharers, and remote workers.
The top three by demand: two-bedroom apartments, one-bedroom apartments, and studios, with three-bedrooms following for family renters.
The trend driving demand: Valencia's growing population of young professionals and digital nomads attracted by quality of life and affordability versus Madrid or Barcelona.
Large luxury apartments with four or more bedrooms are underperforming and likely to remain so, as the tenant pool is thin and price-sensitive.
What unit size has the best yield per m² in Valencia as of 2026?
As of early 2026, the optimal unit size for gross yield per square meter in Valencia is between 40 and 65 square meters (studios and compact one-bedrooms).
For this size range, expect gross yields around 6% to 7%, or €12 to €14 per square meter monthly ($13 to $15 USD).
The reason: tenants pay a premium for location and independence over space, so a 50m² apartment rents for much more than half of a 100m² unit.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Valencia.
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.
What costs cut my net yield in Valencia as of 2026?
What are typical property taxes and recurring local fees in Valencia as of 2026?
As of early 2026, annual IBI property tax for a typical rental apartment in Valencia runs between €400 and €900 ($430 to $970 USD), based on the official rate of 0.5784% of cadastral value.
Beyond IBI, budget for the municipal waste fee plus community fees for shared building services, which together add €600 to €1,500 annually ($650 to $1,600 USD).
All told, these recurring costs typically represent 8% to 18% of gross annual rental income.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Valencia.
What insurance, maintenance, and annual repair costs should landlords budget in Valencia right now?
Landlord insurance in Valencia costs €150 to €350 per year ($160 to $375 USD), covering liability, damage, and sometimes loss of rent.
For maintenance and repairs, budget 0.5% to 1.0% of property value annually, or roughly €1,000 to €2,500 ($1,075 to $2,700 USD) for a typical apartment.
The expense that most catches Valencia landlords off guard: plumbing and water heater failures in older buildings.
Total realistic budget for insurance, maintenance, and repairs: €1,500 to €3,000 per year ($1,600 to $3,225 USD), or about 10% to 15% of annual rent.
Which utilities do landlords typically pay, and what do they cost in Valencia right now?
For long-term rentals in Valencia, tenants typically pay all utilities; landlords cover them mainly for "all-inclusive" medium-term rentals.
If you cover utilities, expect €75 to €125 monthly ($80 to $135 USD): roughly €60 to €90 for electricity and €15 to €35 for water, with seasonal variation.
What does full-service property management cost, including leasing, in Valencia as of 2026?
As of early 2026, full-service property management in Valencia costs 8% to 12% of monthly rent (€80 to €150/month, $86 to $160 USD, for a €1,000 to €1,200 rental).
On top of management, leasing fees typically equal one month's rent (€1,000 to €1,500 or $1,075 to $1,600 USD).
What's a realistic vacancy buffer in Valencia as of 2026?
As of early 2026, Valencia landlords should set aside 5% to 8% of annual rental income as a vacancy buffer.
In practice, this means roughly two to four weeks of vacancy per year for well-located, properly priced properties.
Buying real estate in Valencia can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Valencia, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| idealista (Valencia) - sale price index | Spain's largest property portal with a long-running, well-documented price index cited by banks and analysts. | We used it to anchor purchase prices per square meter in Valencia. We paired it with rent data to compute gross yields. |
| idealista (Valencia) - rent price index | Same methodology as the sale index, providing consistent rent data trusted by media and financial institutions. | We used it to anchor asking rents per square meter. We combined it with sale prices to estimate yields and rent-to-price ratios. |
| idealista (Camins al Grau) - rent index | District-level data from the same index provider, enabling consistent neighborhood comparisons. | We used it to show rent variation by district. We combined it with sale prices to illustrate yield differences. |
| idealista (Camins al Grau) - sale index | Consistent district-level sale price data enabling apples-to-apples comparisons. | We used it to compute gross yield for a central-east district. We contrasted it with other districts to show yield variation. |
| idealista (Benimaclet) - rent index | Covers a student-heavy area with lots of rental activity, useful for understanding yield-friendly neighborhoods. | We used it to estimate rents in a renter-dense district. We computed an example yield to compare with premium areas. |
| idealista (Benimaclet) - sale index | Same index methodology applied to Benimaclet, allowing consistent yield calculations. | We used it with rent data to estimate gross yield. We showed where "good yield" still exists inside Valencia. |
| idealista (Quatre Carreres) - rent index | Covers a large district with multiple submarkets, including mid-market and premium micro-areas. | We used it to show rents in a district with varied price points. We built yield examples for different micro-areas. |
| idealista (Quatre Carreres) - sale index | Breaks out subareas inside the district, helping explain how premium pricing compresses yields. | We used subarea prices to illustrate yield compression. We showed "same rents, very different prices" within one district. |
| Banco de España - Rental Market Paper | Spain's central bank synthesizing supply, demand, and structural constraints in the rental market. | We used it to frame why rents are pressured upward. We justified "low vacancy / fast absorption" for prime rentals. |
| Ayuntamiento de Valencia - IBI ordinance | Official municipal ordinance published by the city, confirming the legal property tax rate. | We used it to confirm the IBI tax rate for urban property. We translated it into annual owner costs for net-yield calculations. |
| Ayuntamiento de Valencia - waste fee ordinance | City's legal text for the waste fee under Spain's waste law framework. | We used it to confirm a recurring waste fee exists. We bounded household-level amounts using press coverage citing the ordinance. |
| CNMC - electricity charges 2026 | Spain's national energy regulator setting core regulated components of electricity bills. | We used it to ground that electricity has regulated components for 2026. We justified a conservative utilities budget. |
| OCU - average electricity bill series | Major Spanish consumer organization publishing transparent monthly electricity figures. | We used it to anchor a realistic monthly electricity bill range. We translated utility costs into yield impact. |
| EMIVASA - Valencia water tariff | Local water utility's official tariff tool, as official as it gets for water charges. | We used it to confirm tariff-based water pricing. We supported a realistic water budget for landlord-paid utilities. |
| Valencia Parque Central - Phase 2 | Official project website for a major urban regeneration area. | We used it to identify works likely to improve local amenity and demand. We highlighted micro-areas benefiting from regeneration. |
| Metrovalencia - Línea 10 | Official operator page for a key transit line serving Valencia. | We used it to show transit infrastructure shaping renter demand. We explained why connected neighborhoods have stronger rent resilience. |
| Valencia Innovation Capital - Tech Hub | City-backed initiative communicating official plans for La Marina innovation district. | We used it to identify job-creation and demand drivers around La Marina. We flagged neighborhoods where renter demand may rise. |
| Valenciaport - North expansion | Official port authority publication describing a major infrastructure investment. | We used it as a demand driver for employment linked to the port. We justified persistent rental demand in port-connected districts. |
| idealista - national yield commentary | idealista's own analysis of yield trends across Spain, providing national context. | We used it to sanity-check Valencia's yields versus national averages. We validated that Valencia offers healthier returns than Madrid. |
| idealista (Ciutat Vella) - rent index | Covers Valencia's historic center where rents are high but prices even higher. | We used it to show high rents don't always mean high yields. We illustrated "premium pricing compresses yield." |
| Cinco Días - net yield analysis | Respected Spanish financial newspaper providing context on landlord costs and returns. | We used it to validate net yield estimates align with reported landlord returns. We confirmed cost categories impacting net yield. |
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