Real estate investment in Valencia

Are you looking for a real estate investment in Valencia that is safe and profitable? So, we have some things to tell you. Take advantage of our tips to turn Turia city real estate into the first step towards your financial freedom.

More and more people are realizing how convenient it is to invest in housing in Valencia. This Levantine capital is distinguished by the robust health of its economy and by a lifestyle in the purest Mediterranean style.

With such ingredients, it is not surprising that its real estate market is one of the most solvent in our country. What are you waiting for to start taking advantage of it?

What is the real estate market like in Valencia?

If you are thinking about making a real estate investment in Valencia, the first thing you should do is collect information. When you discover the advantages and challenges posed by your real estate park, you will be in a position to exploit its profitability.

Valencia real estate market: 5 facts that leave it uncovered

• The average rental yield in Valencia is 4.2% for traditional rentals and 6.5% for tourist rentals.
• The average rent in the Valencian capital costs 15€/m2, which makes it one of the most expensive cities in Spain. To give us an idea, renting a residential property in Valencia costs around € 1,418 per month (1.87% above the national average).
• The upward trend in the rental price is constant. Thus, in 2024 it experienced an increase of 12.7% compared to 2023. That makes Valencia, along with Madrid, the Spanish city where rents are rising the most, standing 9.1% above the European average.
• The ratio of tenants per rented property is very high in Valencia, which keeps prices rising. Not surprisingly, in 2024 there were 30 applicants for every house that was put up for rent.
• Compared to other large Spanish cities, the rental price in Valencia is more competitive. In fact, the capital of the Turia is 5.80% cheaper than Barcelona and 10.31% cheaper than Madrid.

Why is it worth investing in housing in Valencia?

Valencia combines the cultural and economic dynamism of a large city with the tranquility of a provincial city. This eclecticism makes up a destination that attracts thousands of people every year.

Renting is emerging as the priority option for those who want to live in Valencia. After all, the purchase of real estate in property is not within the reach of all pockets (the average price of a house is € 328,300). In addition, the flexibility provided by these contracts is ideal for profiles looking for temporary stays (digital nomads, students, tourists, etc.).

Although the supply of rental housing is growing year after year, it is doing so at a lower rate than the number of potential tenants. That is why the profitability of these properties has been chaining constant increases for years.

This panorama reflects with total clarity to what extent investing in housing in Valencia compensates. The situations we have described remain stable over time, which ensures us a strong profitability and a continuous flow of tenants.

Professionalization: the key to making your real estate investment profitable in Valencia

It takes a lot of experience to know the ins and outs of real estate investment in Valencia. Moreover, this city presents a strongly competitive real estate market where only the best manage to achieve the desired profitability. That's where having the support of professional managers like Muppy allows you to leave with an advantage.

• Your personal advisors: we offer individualized advice so that you can invest in real estate according to your investor profile.
• Experts in the Valencian real estate market: our in-depth knowledge of it allows us to know where its strengths and weaknesses lie.
• All-in-one service: your peace of mind is guaranteed because we take care of your real estate investment from start to finish (property management, insurance, decoration, etc.).

What are the best areas to invest in Valencia?

Benimaclet

Its strategic location next to the university and its excellent provision of services guarantee a high student demand. Not for nothing, its average rental price is € 13.3/m2, which provides an estimated gross profitability of 6% and an ROI of 4.08%.

La Malvarrosa (Poblats Marítims)

The most beachy district of Valencia has an irresistible charm for tourists, especially of foreign origin. Its estimated net return is 4% per annum. As far as the average rental price and ROI are concerned, a real estate investment in Valencia like this one offers the same values as Benimaclet.

Russafa (L'Eixample)

The dynamic and multicultural character of this central Valencian neighborhood makes it very attractive for young professionals. Its versatility allows it to adapt to both residential and tourist rentals. It has an estimated profitability of 4.3% and an ROI of 2.99%, with the average rental price being € 13.3/m2.

El Carmen (Ciutat Vella)

When we talk about real estate investment in Valencia, the neighborhood of El Carmen is synonymous with security. After all, its central location and its intense cultural life satisfy both tourists and residents. With an average rental price of € 18.6/m2, it offers an estimated profitability of 4.08% and an ROI of 6.41%.

Camí Fondo (Camins al Grau)

Located less than 2 km from the City of Arts and Sciences, Camí Fondo is one of the most sought-after neighborhoods for young families. Being in full expansion, rental prices grew by 40.6% in the last year. Not for nothing, the average price of its rentals is € 15.1/m2, being able to generate an ROI of 6.41% and a profitability of 6.07%.

At Muppy we make it very easy for you when it comes to making your real estate investment in Valencia profitable. Sit back and watch your passive income grow every month thanks to our comprehensive service.

FAQs

How can I calculate the profitability of my real estate investment in Valencia?

A very reliable way to find out how profitable it is to invest in a home in Valencia is through the Return on Investment (ROI). The formula to calculate it is (return obtained – investment) ÷ investment x 100.

What kind of real estate properties are the best to invest in Valencia?

The choice depends on what your goals are as an investor. The central houses are perfect for short-term tourist rentals, while the properties on the periphery are usually intended for long-term residential rentals.

How can I finance my real estate investment?

The usual way to finance this type of investment is to resort to mortgage financing. Of course, the most prudent thing is to make sure that the loan installment does not exceed 40% of your monthly income.

Beyond that limit, the investment begins to be too risky because there are other expenses that you have to face (such as the IBI and the community).

How much money should I have saved to invest in real estate in Valencia?

The ideal would be to have saved 20% of the purchase price of the property. With this, you will be able to get out in front of both the unforeseen events and the expenses derived from the sale (they are equivalent to 10% of its price).