Valencia, Spain’s third-largest city, attracts more and more investors, foreigners, and young professionals every year, all looking for a better quality of life. With its sunny Mediterranean climate, kilometers of beaches, modern infrastructure, and laid-back atmosphere, Valencia has plenty to offer.
Added to this are property prices that remain reasonable compared with Madrid or Barcelona, as well as a booming rental demand — two key factors that appeal to foreign buyers.
Yet despite this growing interest, several indicators show that Valencia is still, for now, “affordable.”
This situation, however, could change quickly. Current market trends and the region’s economic momentum suggest that the window of opportunity may narrow in the coming years.
In this article, we explore why Valencia remains financially attractive today while identifying the signals pointing to a progressive rise in property prices.
Between population growth, urban development, and rising tourism, Valencia is at a pivotal moment.
Valencia is attracting more and more people thanks to its quality of life and still-affordable prices, even though everything suggests that the property market may soon rise.
Prices still undervalued compared to major cities
Even though prices have risen, the market has not yet reached the 2007–2008 peaks in every neighborhood.
Some districts may still increase by 15–20% compared with pre-crisis levels.
Why it matters:
For investors or foreign buyers, this means access to an attractive major city at a more reasonable price than Madrid or Barcelona, with strong potential for capital appreciation.
Strong rental demand and solid yields
Valencia’s rental market is “tight”: rental supply does not meet demand, pushing rents upward.
Gross rental yields can reach 6–8% in some cases with a well-targeted purchase.
Overall yields vary from 5% to 9%, depending on district and property type.
The market is fueled by several profiles: expatriates, students, young professionals… ensuring stable demand.
Why it matters:
Attractive rental profitability makes Valencia a particularly interesting investment. Even if prices rise, demand supports a good return on investment.
Cost of living and taxation: major advantages
Valencia’s cost of living is lower than in many European cities.
Property taxation is favorable: rental income is taxed in Spain, but without certain contributions such as the French CSG.
Local property taxes (IBI) remain reasonable depending on district and property type.
Affordable cost of living + favorable taxation = a highly competitive city for investors and new residents.
Limited supply vs. increasing demand
The supply of available properties — especially renovated or well-located ones — does not always meet demand.
New developments remain limited due to rising material costs and administrative delays.
This tension keeps prices attractive… but may also push them upward over time.
Supply and demand: rising prices are increasingly visible
Current market trends clearly show a continuous rise in prices:
Property prices increase each year, even if the +10% annual jumps of the past are unlikely.
Falling interest rates are unlocking the market:
In 2023, rates exceeded 4%.
In 2025–2026, residents can borrow at around 2%, boosting purchases and accelerating sales.
The market remains extremely active and continues to attract foreign investors, expatriates, and residents.
The evolution of price per square meter illustrates this clearly:
€1,700/m² in 2022 (all districts combined)
Nearly €3,000/m² in early 2025
Trends suggest Valencia may exceed €3,000/m² in 2026.
Valencia remains very attractive — but strong demand is naturally pushing prices up. The city is appealing today… but for how much longer?
A strategic location and exceptional quality of life
Mediterranean climate, safety, quality of life
A cultural, innovative, and dynamic city
Attractiveness reinforced by urban renovation and a strong sustainable vision
How long will this attractiveness last?
Even though Valencia is still relatively affordable, several signs indicate that the situation may change:
Rapid price increases in some districts (Russafa, El Carmen…).
Sharp rise in rents and a tense rental market.
Insufficient supply versus growing demand.
Decreasing affordability for local residents, with potential social tensions.
Conclusion
Valencia remains a very attractive real estate market: lower prices compared with major Spanish cities, strong rental demand, solid yields, reasonable cost of living, and favorable taxation.
However, this attractiveness is not guaranteed long-term. The progressive price increase, changing interest rates, and the imbalance between supply and demand suggest that the current period may be a limited window of opportunity.