Valencia, the epicenter of real estate investment: prices continue to rise and rental prices are under pressure.

Published on July 8th 2025

The Valencia real estate market is consolidating its position as one of the best places to invest in housing in Spain. According to the latest data published by idealista, by June 2025, the average price of existing housing in the city will have reached €3,067/m², representing a 20.1% year-over-year increase and a new all-time high.

This growth far exceeds the national average (14%), consolidating the capital of the Turia region as one of the most dynamic and profitable for real estate investors.

 

Why is Valencia a key city for investment?

1. High asset appreciation

In neighborhoods such as L'Olivereta (+26.4%) or Algirós (+24.3%), housing has appreciated in value by over 20% in just one year.

Even traditionally more affordable districts such as Rascanya (€2,106/m²) or Patraix (€2,569/m²) are showing increases of over 18%, maintaining a strong profitability margin in the medium and long term.

 

2. Rental Yields at Record High

Valencia also stands out for the growing pressure on the rental market: the average rent has risen 10% year-on-year, a figure that exceeds the Spanish average.

The combination of high rental demand, low available supply, and purchase prices still below those of other major capitals makes the city a solid source of passive income for small and medium-sized investors.

 

3. Investment-Friendly Environment

With stable interest rates and mortgage financing still accessible, many buyers see housing as a refuge from inflation and a safe bet in a volatile macroeconomic environment.

 

Where are the best opportunities?

In areas with high appreciation potential, such as l'Olivereta: prices are still around €2,225/m², but with a strong annual increase (+26.4%). High residential demand and good transport connections.

Patraix: an established, family-friendly, and still affordable area (€2,569/m²).

La Saïdia and Benimaclet: popular with young people, students, and professionals, with good rental yields.

Also in established premium areas, such as Ciutat Vella (€4,339/m²) and El Pla del Real (€3,879/m²), they remain solid bets for a property profile, with high tourist demand and high-end residential developments. Campanar and the Extramurs offer a balance between exclusivity and accessibility.

 

Rentals: a driver for investment

The dynamism of rentals is closely linked to investment profitability. According to the latest reports, Valencia exceeds 6% average gross rental yield in many areas. It is also experiencing extremely high demand, both for traditional residential rentals and for short-term or tourist rentals. Furthermore, it is positioning itself as a more affordable and attractive alternative to saturated markets like Madrid and Barcelona.

Experts estimate that prices will continue to rise between5% and 7% during 2025, due to the shortage of supply, the dynamic rental market, and constant demand. Furthermore, the housing shortage in Spain (estimated at 450,000 units by the Bank of Spain) further reinforces the pressure in cities like Valencia.

 

At aProperties, we observe that:

  • There is growing demand from international investors, attracted by the quality of life, the climate, and profitability.
  • Areas with renovated infrastructure or undergoing urban transformation are attracting increasing interest.
  • The mid-stay rental housing segment (professionals, international students, teleworkers) is a growing opportunity.

 

With a combination of rapid appreciation in value, high rental yields, and a favorable economic environment, Valencia is consolidating its position as one of the most attractive cities for real estate investment in Spain in 2025.

At aProperties, we help you find the best investment opportunities, whether in emerging areas or established premium locations. If you're considering diversifying your portfolio with high-demand real estate assets, this may be the perfect time.

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