Analysis Real Estate Market Valencia 2024 Q1: the most interesting area

Analysis Real Estate Market Valencia 2024 Q1

In the first quarter of 2024, both the city and the region of Valencia are once again showing a rise in house prices that is significantly higher than in other regions of Spain. Read more about it in the Real Estate Market Analysis Valencia 2024 Q1.

General situation housing market Spain

Overall, in the first quarter of 2024, the price of houses in Spain increased 3.3% compared to the same quarter last year. In the fourth quarter of 2023 the increase was 4%, in the third quarter 5% and in the second quarter of 2023 it was 4.9%. So the increase seems to be stablizing, but this is not true throughout Spain.

It is noticeable that municipalities known for their tourism are not noticing the stabilizing trend as much. We are talking mainly about the Costa’s, islands and large cities such as Valencia and Malaga. Here it is not the Spaniards, but mainly foreigners who buy a house in Spain, that keep this market undiminished.

Furthermore, price increases remain stable in high employment areas and their surrounding urban areas.

You can find more about Q1 2024 real estate figures in Spain here.

Provinces of Spain Real estate market analysis Spain 2024 Q1
House prices rise year-over-year by province

Property prices Valencia vs. other regions in Spain

The year-on-year increase in the entire Comunidad Valenciana is 7.1%. This is the second highest price increase in the autonomous regions of Spain. Only the Balearic Islands (Ibiza, Mallorca, etc.) have a slightly higher rate of 8.3%, but there prices are also immediately much higher. In the Comunidad Valenciana you pay an average of 1,395 €/m² for a property, where in the Balearic Islands this is more than double: 2,922 €/m².

In addition, the Valencian region is also one of the regions where the provinces show a different behavior among themselves. For example, the provinces of Valencia and Alicante show an increase of 7.2% and 7.8%, with an increase of 5.2% in the province of Castellon.

The most striking increase is seen in Valencia city, where house prices have risen 11.2% year-on-year. By comparison, in Madrid it is 3.9% and in Barcelona 2.6%. But again, despite the high increase, the striking difference in the square meter price. Indeed, in Valencia city you pay on average only 2,070 €/m², where in Madrid it is 3,277 €/m² and in Barcelona 3,701 €/m².

Cities Spain Real estate market analysis Valencia 2024 Q1
Average m² prices by city (n.b.: only Catalonia to Madrid are on this image)

House prices Valencia city by neighborhood

In Valencia city, real estate prices continue to rise significantly, just like in the previous quarters. But which neighborhoods truly stand out?

The increases are becoming more intense, with price hikes of over 20% compared to the previous year in the Jesús district. Prices have also risen by more than 15% in four other districts: Poblats Maritims, Benimaclet, L’Olivereta, and Poblados del Sur. And it’s not just annual increases; we’re seeing strong upticks every quarter.

When we look at the price per square meter, we see that Ciutat Vella, the old town, has exceeded the €3,000/m² mark this quarter, making it currently the most expensive neighborhood in the city. Next are Eixample and El Pla del Real.

Districts Valencia Analysis Real estate market Valencia 2024 Q1
Average m² prices by neighborhood

Return on rental Valencia

The gross rental yield in Valencia City averages 8%. To calculate this, we looked at the return over a 5-year investment (Compound Annual Growth Rate, or CAGR). Figures are nothing without comparison, so again we look at the CAGR of other major cities: in Madrid it is 4.7%, in Barcelona 1.8%, in Seville 4.4%, Zaragoza 4.9% and Malaga 6.9%.

The districts with the highest returns in Valencia, are Poblats Marítims (including Cabanyal), Jesús, Quatre Carreres, Benicalap, Campanar and L’Olivereta, with rates between 8.3 and 11.4%.

Map neighborhoods Valencia Analysis real estate market Valencia 2024 Q1
Average price per m² - Percentage price increase year-on-year - Average yield

Conclusion real estate market Valencia 2024 Q1

While the housing market in Spain is currently reasonably stable overall, we still see the real estate market in Valencia experiencing strong growth in 2024. However, square meter prices are still relatively low compared to cities like Madrid and Barcelona, where the growth is much more moderate. This, combined with Valencia’s enduring popularity in general, makes Valencia still a very interesting, if not one of the most interesting areas in Spain to make a good investment.

If you’d like to learn more about investing in Valencia and would appreciate assistance from someone on our team, please let us know, and we’ll be happy to help you further.

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