Why Buy Property in Valencia?: 3 Reasons to Invest in the Province of Valencia

In general, rental housing offers higher returns than other types of assets. However, if the property purchase is made in Valencia City, profitability is (almost) guaranteed! In fact, Valencia ranks in the top 10 provinces with the highest returns, with an average yield of 9.30%, according to data from Masteos’ report on the most profitable cities for investment.

Additionally, Valencia ranks in the top 10 most profitable cities for rentals, with a yield of 6.4%, and even reaching 7% in some strategic neighborhoods in the city center.

The appeal of buying an apartment in Valencia is not limited to the city itself. Across the Valencian region, there are other highly attractive cities due to their high returns and competitive prices. Cities among the top 10 most profitable municipalities with populations between 50,000 and 100,000 include Gandía, Alicante, Alzira, Elda, Alcoy, and Villarreal. Other municipalities, like Elche and Castellón de la Plana, although not in the top 10, still offer returns of 6.4% and 7%, respectively.

These investment opportunities are further enhanced by shifting residential preferences. Rising rents and the growth of remote work have encouraged many workers to leave major cities like Madrid and Barcelona for more accessible cities that offer a high quality of life and, above all, more affordable prices. Valencia is synonymous with good weather, natural beauty, and rich culture, which is why the number of new residents, students, and tourists has grown considerably in recent years.

Spain has approximately 4 million rental properties, making it one of the smallest rental markets in Europe. Studies indicate that at least one million additional rental units are needed to meet current demand.

It’s logical to assume that if Valencia’s population grows, rental demand will also increase to accommodate all those wanting to live or visit the city. This results in ongoing pressure on rental demand in Valencia, with no decrease expected in the short term. In fact, in terms of vacation rentals, prices range from 75 to 125 euros per night, a 9% increase compared to summer 2022, according to the Valencian Association of Real Estate Agents (ASICVAL).