Where to invest in Valencia

1. Located on Spain’s Eastern coast along the Mediterranean Sea, Valencia is the ideal spot to explore the rest of the country and is less than two hours by train from Madrid. It is bordered by Castellon in the north and Alicante in the south.
2. The climate is a comfortable mix of hot summer days and mild but rainy winters. Just like other parts of Spain, Valencia gets around 300¹ days of sunshine, however the temperatures are generally moderate, making it a great year-round holiday destination.
3. Valencia is the birthplace of Paella² – the world-famous rice dish. Most restaurants offer variations of this much-loved dish and it’s a popular Sunday lunch for Spaniards all over the country. Valencia even has a museum dedicated to rice – the Museo de Arroz – celebrating the city’s favourite food.
4. Valencia is famous for its festivals and every March, thousands of people enjoy ‘Las Fallas’, a spring festival where giant dolls are paraded around the city. The best ‘falla’ is saved from a large fire where all the others are burnt. The streets are filled with musicians and dancers to celebrate this traditional Valencian festival.
5. Street art is a big part of Valencian culture, and impressive murals can be seen dotted throughout the city. Just like an open-air gallery, every street corner shows the work of local artists.

Valencia is a city that’s easy to navigate and walking around the mix of cobbled streets and modern roads it’s easy to explore on foot.

Once overshadowed by Barcelona and Madrid, in recent years it has grown in popularity with international visitors. In fact, 2022 saw the city receive the European Capital of Smart Tourism award for its accessibility, creativity, and cultural heritage.³

Running alongside the city are the stunning Turia Gardens which contain palm trees, orange trees, bridges, and ponds. This vast urban park is the former riverbed of the Turia which devastated the surrounding areas after a flood in 1957. The river was diverted to the south of Valencia and the botanical gardens were created in its place.

Valencia is divided into 19 districts, which are further divided into quarters, or neighbourhoods. In this section, we’ll look at a few of the most popular areas in Valencia.

This is the city centre and is also known as Valencia’s Old Town. It is the heart of the city and offers visitors historic buildings, a busy nightlife scene and plenty of places to eat. Most of Valencia’s tourist attractions are in the Old Town. Valencia Cathedral, Lonja de la Seda and Central Market are some of the most popular sites.

Located in the Old Town, El Carmen is one of the busiest neighbourhoods in Valencia. It’s characterised by long narrow streets and historical buildings. It’s a heady mix of trendy restaurants, shops and amazing street art. Points of interest are the historic tower gates of Torres de Quart and Torres de Serranos which were part of the medieval city walls.

Whilst this area isn’t the most attractive in the city, it does offer a large beach and affordable properties. Busy in the summer months, there are plenty of beach side restaurants and bars where you can sample local treats.

This is one of the most aspirational neighbourhoods in Valencia, close to the city centre but more residential in nature. This area is bursting with stately buildings such as City Hall and historic palaces. There are plenty of shopping options, from well-known brands to fashionable independent stores.

Located in the neighbourhood of Eixample, and known as Russafa, this trendy area has undergone a huge makeover in the last 20 years from a rough residential neighbourhood to a bohemian hub of art galleries, posh restaurants, and traditional bars. It also boasts a well-loved local market which has been running since 1957⁴

From fishing huts to colourful tiled buildings, this district of Valencia offers long winding passageways, plenty of seafood restaurants and a thriving arts scene. This district offers a real peek into traditional Valencian life. It has a busy market where you can buy delicious fresh produce and its beachside location is a perfect place to sit back and watch the world go by.

Although Valencia’s beaches might not be the most beautiful that Spain has to offer, there are plenty of them. And what they lack in scenery, they make up for with miles and miles of wide stretches of golden sand and warm sea.

Playa de las Arenas is the central beach and is surrounded by hotels, restaurants, and bars, so it attracts lots of tourists during holiday season. It is 100m wide so never feels too crowded, even in the hot summer months⁵.

Other popular beaches include Malvarrosa Beach, Port de Sagunt and Port Saplatja. The mix of city life with beach side living is popular with tourists and investors alike – as it offers a relaxed outdoors lifestyle.

Over the last few years, the property market in Valencia has seen an upward trend in prices as it has grown in popularity with foreign buyers all seeking a slice of the Spanish sunshine.

The city offers a range of property types, from apartments with sea views, penthouses, townhouses, and larger village-style properties in the outer areas.

In January 2024, the average property prices were €2,255 per m², an increase of 16.06% from the previous year⁶.

The below table shows sale prices for different neighbourhoods or districts in the city.

All price data from Indomio, a Spanish property portal.

Just like other cities, the price you pay for properties depends on location. So, if you’re looking for city centre apartments, these may cost considerably more than suburban properties.

Despite the city’s growing popularity, properties in Valencia are cheaper than cities such as Barcelona, Madrid and Malaga⁷. Making this an attractive investment area for non-residents seeking to relocate or expand their property portfolio.

Whether you’re looking to buy a holiday home or a long-term investment opportunity, rental prices in Valencia have increased in line with sale prices. So, investors can expect a decent return if looking for property in this Spanish city.

The average rental yields of property throughout the city are roughly 7.17%, which is higher than both Barcelona (6.27%) and Madrid (5.3%)⁸, where property prices are significantly higher.

There is a big difference in the rental price per m² depending on where you buy in Valencia. For example, in the city centre, areas like Ciutat Vella have recorded rental prices of around €14.90 per m². However, in Patraix, which is more in the outskirts of Valencia, rental prices are around €9.50 per m².⁹

Over the last few years, there has been a surge in foreign investors buying properties for short term holiday rentals (which has been seen around the country) and this has led to changes in rental rules¹⁰. Each area of Spain now has different rules around short term lets so it is important to understand how this works in Valencia.

Many expats have chosen Valencia as their home, with many Brits and Americans choosing to settle in this laid back, friendly city. In 2020, it was given the accolade of best city for foreign residents in the world¹¹, which is reassuring if you’re thinking about investing your money here.

Wherever you choose to buy in Valencia, one of the main attractions of living here is the sunny outdoors lifestyle due to the beaches, large parks, and market squares.

Another benefit is that this part of Spain offers a lower cost of living than compared to other Spanish cities. Rents and consumer prices are considerably lower here than in Madrid or Barcelona¹².

If you’re thinking about relocating to Valencia, now or in the future, it might be good to know that it was voted the healthiest city in the world to live in 2021 and 2022. The life expectancy in the city is 83.5 years, perhaps due to the excellent health care, diet of fresh produce and sea food, and minimal pollution¹³.

For more reasons to invest in Spain, check out our guide here.

If you’d like to find out more about the Valencia property market and to start your search for the ideal investment property, speak to one of our iad Overseas property consultants* today.