Real estate market analysis Valencia 2023 Q1: Valencia real estate excels

Real estate market Valencia 2023

The first quarter of 2023 has brought interesting developments for the Spanish real estate market and specifically for the real estate market in Valencia. The demand for housing here is stronger than ever and this presents opportunities. We again summarise the key figures and trends in the Valencia real estate market in the first quarter of 2023.

General situation real estate market Spain

The average price of properties in Spain (new construction and existing construction) rose 0.9% in the first quarter of 2023 compared to the previous quarter, representing 6.3% year-on-year. Average house prices in Spain thus continue to rise, especially in the big cities and on the coast. Demand for housing remains strong.

These first 2023 figures indicate a continuation of the normalisation of the volume of purchases and sales. It indicates a return to a volume of transactions in line with the historical average. It is lower than the strong difference between the second half of 2021 and the first half of 2022, but it is still at a strong level, with moreover: attractive property prices.

Valencia real estate market 2023 Q1 Spain
House prices year-on-year increase by province. Valencia 10,1%!

Property prices Valencia vs. other regions in Spain

Valencia is one of the regions in Spain with the highest price rise. Now the price rise in Valencian real estate is a trend that has been going on for some time, but this quarter the region excels extra compared to other regions.

Looking at the quarter-on-quarter increase, property prices in Valencia are up 2.4%. On a year-on-year basis, this amounts to 10.1%. By comparison, for Madrid, the quarterly difference was 0.3% with 3.8% year-on-year and in Barcelona even a quarterly difference of -0.3% with 2.7% year-on-year.

Then you think: will Valencia be as ¨expensive¨ as Madrid or Barcelona? We can answer this with a no for now. You pay an average of €1,870 per square metre in Valencia, compared to €3,576 in Madrid and €3,579 in Barcelona. By the way, we put “expensive” in quotation marks for a reason; of course, it is still a pittance when you compare it to big cities in the Netherlands. Take Utrecht, for example: average €5,070 per square metre. Or Amsterdam: average €7,202 per square metre.

Average m² prices by city (n.b.: only Catalonia to Madrid are on this image)

House prices Valencia city by area

This quarter, no fewer than five neighbourhoods in Valencia city are showing high price increases of more than 10% year-on-year. These are the districts of Patraix, Quatre Carreres, Benicalap, Poblados del Sur and El Pla del Real.

The top three most expensive neighbourhoods in Valencia this quarter are once again led by Ciutat Vella, Eixample and El Pla del Real. Here you will find average house prices of more than €2,200 per square metre.

Real estate market Valencia 2023 Q1 areas
Average m² prices by area

Return on rental Valencia

Valencia’s popularity is also reflected in the average rental yield. Whereas gross rental income in both Madrid and Barcelona averages 4.3%, in Valencia it averages 4.7%. Of course, depending on the neighbourhood and the property, this percentage can be even higher. So investing in Valencia for rent still remains an interesting option.

Average price per m² - Percentage price increase year-on-year - Average return on investment

Conclusion property market Valencia 2023 Q1

Overall, in the first quarter of 2023, the Spanish real estate market shows a small increase in house prices, with still significant year-on-year differences, especially in Valencia. There is strong demand for properties in Valencia, which continues to influence prices. This demand could lead to further price increases, ultimately benefiting people who want to buy a house in Valencia on short notice, or have just bought one.

Overall, the Spanish real estate market seems to be healthy and remains an attractive option for investors and people looking to buy a (second) home in Spain.

If you have any questions about investing in Valencian property or about the different districts, feel free to contact us for more advice.

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Dream Properties Valencia is Certified Estate Agent based in Valencia and meets all legal requirements to carry out the profession of estate agent in the Comunidad Valenciana.

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