Investing in Valencia

Valencia is very popular with investors. What makes it so attractive to invest in Valencia? First of all, Valencia is of course a sunny, vibrant and fun city that attracts many people. Because of this, there is a lot of demand for flats, while the housing market in Valencia – especially compared to Northern Europe – still offers many interesting opportunities. So, in short: investing in Valencia is interesting.

What are the investment opportunities in Valencia?

Like in many big cities, you can invest in Valencia and get your returns from the following possibilities, or combinations of them:

  • Buying a house and renting it out for the medium or long term
  • Buy a ‘fixer-upper’, renovate and sell for a profit
  • Increase the price of the property due to price increases in the housing market in general

It is good to think in advance about how you want to make the investment. What is your goal and what will you focus on? Below, we will elaborate on the various investment options in Valencia. We will also give you some tips to invest in Valencia city, but also to invest in Valencia region. What are the interesting opportunities that this sunny city offers you?

Valencia City

Return on investment from rental properties

The first question you should ask yourself is whether this is purely an investment for a return or whether you would also like to use the property yourself in part. If you choose the latter, it means that you choose to rent out your property for the short to medium term. With this, you are aiming at target groups such as people who stay here for three to six months for example to follow a language course, an Erasmus programme or internship, the Digital Nomads and people who use it as a base for buying a house or want to ‘test live’.

If you absolutely do not need to use your investment property yourself and/or want to build up a property portfolio, you can also focus on the long term rental to, for example, expats, students and the (inter)national community who want to live in Valencia, whether or not for a longer period of time.

Medium and long-term rental

If you are thinking of investing in Valencia for a medium or long term rental, then it is good to know which districts are ‘popular’ to live in. The shorter the stay in the city, the more central people often want to be. What is a nice place to live is of course different for everyone, but in general there is much demand for housing in the districts Ruzafa, La Gran Via, Eixample, Ciutat Vella, El Carmen, El Cabanyal and Malvarossa. These typical Valencian neighbourhoods are also a good investment if you regularly come to enjoy yourself. You will then be in the middle of the bustling Valencia and close to everything the city has to offer.

From a budget point of view, if you want to buy up to a maximum of 250K, you could also look at neighbourhoods around the centre. Think of neighbourhoods such as: Monteolivete, En Corts, Arrancapins, La Petxina, Patraix and Mestalla. Because of their location, these neighbourhoods are also popular for tenants looking for accommodation. Also a good option if you want to enjoy your own property in Valencia.

If you want to rent out to students, you should look for a property in Benimaclet, the student district of Valencia.

Renting to Students
Buying an Apartment

Invest in new construction in Valencia

If you prefer modern architecture, the areas around Ciudad de les Artes and Campanar towards the Bioparc (Zoo) north of the Turia riverbed are a good choice. Here you will find more recent flats built between the years 2000 and 2008. Most have swimming pools, squash courts, padel courts, gyms and communal gardens. They are often a lot higher than the older buildings in the old centre and have great views.

There are also regular launches of new construction projects in Valencia, which of course we keep an eye on. It is important to be ready to buy, to be able to register quickly. Investing in this can be a good idea, because modern flats are very popular and for the time being you do not have to worry about maintenance.

Return on tourist rental

If you want to invest in a flat in Valencia and get a return on your holiday rental, we have to tell you that obtaining a tourist rental license in Valencia is no longer possible. The AirBnB rental construction is no longer possible.

If this really is the way for you to generate income, please let us know. We can advise you on areas in Spain where you can invest in this way. Since we have properties all over Spain, we can also advise you on where you can invest in Spain for short term rentals.

Invest by renovation

Investing in Valencia through renovation

If you are not afraid of a fixer-upper, you can get a great return from a renovation project in Valencia. There is plenty of choice in the old parts of the city, such as the districts of Eixample and Ciutat Vella. Also in the districts around the beach you will find many houses with potential. Beautiful old facades, but completely dilapidated and really in need of a makeover. It is good to be guided in this, because we are sometimes dealing with monumental buildings, so you cannot always just adapt everything. Often, the strength lies in restoring the original details and making them beautiful again. In this way, you can add a lot of value to the house and sell it for a profit.

Many people who are looking for a house to buy in Valencia want to buy a renovated house with all modern conveniences. Of course we can help you with selling your property. Do you also need help with your renovation in Valencia? We can help you find the right partners within our reliable network.

Investment due to increase in value in general

In Valencia, as in other cities, you will see that house prices have been rising steadily in recent years. Because the price level of Valencia compared to Madrid and Barcelona is still just at 50-60%, there is a growing demand and you will see that the value is increasing by 6-7% annually. The popular neighbourhoods, such as Ruzafa and Cabanyal, are growing even faster. So just by buying a house in Valencia, you are assured of a good investment. You can enjoy it fully yourself or rent it out partially, and in the meantime your house will automatically increase in value.

Of course, we closely follow the housing market in Valencia and Spain. Keep an eye on our News page on the website, because every quarter the analysis of the real estate market in Spain is published, which we would like to present to you in bite-sized chunks.

Invest in properties Valencia
City apartment

Invest in Valencia city - conclusion

Investing in real estate in general, and specifically in Valencia, is a good choice. Where and what and for whom, these are all choices, where we as Dream Properties Valencia can of course advise you.

Important is for what purpose you buy, what is your budget. We have a lot of information about the possibilities in the different neighbourhoods. But actually, the most important thing to realise is: Valencia is not very big. You are never far away from the popular neighbourhoods, the centre or the Turia, the big city park. Even at the edge of the city, you are only about 3 or 4 km from the centre. And most neighbourhoods have metro stops, which means it is very easy to get around quickly. So open your mind to all the alternatives that Valencia has to offer, also in terms of investment.

Investing in the Valencia region

What are the rental opportunities in the Valencia region? Again, the investment options of renting, refurbishing and/or increasing the value are of course available. As for prices, it depends of course on what and where you want to buy. An easy rule of thumb for investing and buying: the further inland you are, the lower the prices and the closer you are to the city, the higher the prices. As always, location, location. For example, you can buy a three-bedroom detached house near the larger town of Lliria (with beautiful views and private pool) for the same price as a flat in Ruzafa. Lliria is half an hour’s drive from Valencia city, but is still connected to the Valencia metro. If you are looking for a detached villa in one of the suburbs of Valencia, like Godella, Rocafort or La Eliana, the prices will be higher, but of course the rental prices will also be higher.

Also see: 10 x best suburbs to live in around Valencia

There are plenty of options in the region of houses with a garden, pool within half an hour from the city, airport and the beach and connected by metro network. Of course, you will get much more house and space for your money here than in the city centre. So you have to make a choice where to invest. Rental properties are also in high demand here, so definitely an interesting investment option.

As you can see, there are many alternatives for investing in Valencia city and surroundings. Even though prices have risen in certain areas, it is still interesting to invest in Valencia. Especially compared to real estate prices in the Netherlands and Belgium. The possibilities are endless and all this while enjoying the Valencian sun, which is free.


Interested in Investing in Valencia?

Planning to invest in Valencia city? A lot is possible if you want to invest in a property in or around Valencia. But in some areas, you just have to find the right flat to invest in.

The team of real estate agents Valencia will gladly help you in this search. We take you by the hand to visit the right properties in the first place. Through our extensive network, we can put you in touch with reliable companies in the field of mortgages, renovations and rental services in Valencia and the region. Carefree purchasing is our goal. See you soon in Valencia!

If you have any questions about buying a home, want more specific information on e.g. legal issues and taxes or if you need advice on any step in the buying process, please contact us now or we can help you with our free search service by filling in the form.

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