Valencia: The new frontier of luxury real estate investment

Valencia: a city on the rise

"Valencia has gone from being a hidden gem to a prime emerging market," says Karen Muiños, Sales Manager at Lucas Fox Valencia. ‘More and more buyers with high purchasing power see in our city an opportunity to invest in luxury properties with great potential for appreciation’.

In fact, appreciation in the most exclusive and central areas has reached up to 30% in the last five years, reflecting the growing interest in buying property in Valencia. Factors driving this trend include the rise of remote working and the growing popularity of the city as a retirement destination.

Within the premium market in Valencia, the district of L'Eixample and, in particular, the Pla del Remei neighbourhood, stands out as the most sought-after area. ‘Pla del Remei is the heart of luxury in Valencia,’ explains Muiños. ‘Its modernist buildings, its proximity to Calle Colón and the Colón Market, and its range of high-end homes make it a safe bet for those looking for exclusivity’.

Along with Pla del Remei, other areas such as Ensanche and the City of Arts and Sciences have experienced a notable revaluation, attracting investors and buyers looking for a balance between modernity, services and a privileged location.

Rental profitability: a growing market

Valencia has also become an attractive destination for rental investors. ‘Rental yields in the centre of Valencia are between 4% and 6% per year,’ says Muiños. "One- and two-bedroom flats, in particular, are in constant demand, with yields of around 5%.

The tourism boom, the arrival of international students and the growing demand for long-term rentals have strengthened this segment, positioning Valencia as a solid option for both purchase and rental investment.

A promising future

Valencia is on the radar of international investors, with growing interest from the United States. ‘Valencia's attractiveness goes beyond its competitive prices,’ concludes Muiños. "Its quality of life, climate, gastronomy and economic dynamism are positioning it as one of the most interesting cities for real estate investment in Europe.

With a market in full expansion and a sustained revaluation, Valencia is shaping up to be one of the major players in the real estate sector in the coming years.