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Is buying a property in Valencia a good investment?

Valencia is the third largest city in Spain, after Madrid and Barcelona. With a small population of approximately 800,000 and being extremely navigable, it is gaining increasing popularity as a city to live in. Add to that, the current issues surrounding Cataluña’s independence, Valencia is the foremost contender to becoming the next best thing. In the following article, we’ll explore what makes Valencia so attractive for property investment.

The benefits of buying a property in Valencia

Real estate prices in Valencia

In comparison to Madrid and Barcelona, Valencia still has very low prices in terms of buying real estate . Prices during the last financial crisis fell but have steadily been on the rise since 2017. The average price per square meter in Valencia is currently 1,807€ but prices are expected to fall again in light of the impact on mortgage signings with COVID-19.

Graph showing evolution of real estate prices to buy
SOURCE: Idealista September 2020

With the estimated drop in sales prices, the final quarter of 2020 and the first quarter of 2021 would be the ideal time to invest in property in Valencia.

On the other hand, rental prices have seen a steady increase over the last years. The current rental price in Valencia is 9€ per square meter and with the current uncertainty with employment, people will be looking to rent instead of buy.

Trend for rental prices in Valencia
Source: Idealista October 2020

As an investor, this would make it an ideal time to buy and rent your property in Valencia.

Easy access to Valencia

In the last decade, getting to Valencia has become extremely easy. Low cost airlines have made Valencia a key destination from the UK and other European countries. In addition, high speed trains connect it to the capital and Barcelona is only three hours away.

Tourism statistics for Valencia 2018
Source: Tourism Statistics Valencia

As Barcelona becomes less attractive for international companies, Valencia with its port has become the best alternative.

Valencia as a popular destination

Not only does Valencia boast 314 day of sunshine a year but the mild Mediterranean climate and proximity to the sea are a great draw for the Nordic countries.

Valencia’s yearly climate with sunshine and average temperature.

The average annual temperature is over 20º, which is naturally attractive to anyone looking for warmth and sunshine. Not only is tourism on the rise in Valencia in recent years but now with more people being able to work remotely, Valencia offers an unbeatable location in terms of affordability and climate.

Valencia’s history and culture

Americans love the idea of everything Europe offers in terms of architecture, history and culture. Valencia has the added advantage of having all three without being expensive to visit or live in.

Visitors to cultural places in Valencia, 2018.

Apart from the museums, Valencia boasts a rich history and the old gates to Valencia (Torres de Quart, Serrano, Puerta Del Mar) are standing evidence of how far back the history of this city dates.

beautiful architecture in Valencia

Apart from this, you have beautiful churches that dot the city and make it irresistible to anyone in search of European history and culture.

Conclusion

All things considered above, we know that more people are visiting Valencia each year. Apart from tourism, people are actually looking to move here for the short term. With rental prices going up, if you plan on buying property in Valencia as an investment, renting out your property could mean a good source of income in the years to come.

We understand buying a property can be daunting so if you need more information contact our team who can refer you to the experts. In addition, if you are looking at property as investment, we have an excellent property management team with more than 15 years experience with real estate in Valencia.

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