The best area in Valencia to invest in real estate

Are you thinking about investing and looking for the best area in Valencia to invest in real estate?

At Monserrate Real Estate Premium Home Agents, we are experts in the Valencia real estate market and are here to guide you every step of the way on this exciting journey. In this comprehensive guide, we will analyze why Valencia has become a magnet for investors, the most promising real estate investment opportunities, and provide practical tips to ensure a successful investment.

Discover everything you need to know to start your investment in the best area of Valencia!

Guide to investing in the best area of ​​Valencia

Reasons why you should invest in Valencia

Valencia has established itself as a good option for investors for many reasons. In addition to attractive housing prices, factors such as its demographic growth, strategic location, and Mediterranean climate make it a very desirable option.

Valencia is a modern city in constant growth, recognized for its excellent quality of life. Its cultural, leisure, and tourist offerings have gained international visibility, attracting tourists and new residents alike. The Mediterranean climate and the strategic location between the sea and the mountains contribute to its appeal, making Valencia an ideal destination for both living and visiting.

The real estate market and real estate investments in Valencia are booming. According to data from Tinsa, an international reference in real estate valuation ([Tinsa interannual variation](https://www.monserrateinmobiliaria.com/en/)), the average price of housing in Valencia reached €2,007/m² in the fourth quarter of 2023, with an interannual increase of 99%. This growth, although significant, still keeps Valencia more accessible compared to other major Spanish cities like Barcelona, where the average price per square meter exceeds €4,000/m².

Valencia continues to attract companies that decide to establish their headquarters here, benefiting from the infrastructure and quality of life that the city offers. The Valencians enjoy their “terreta” (land), and many foreigners who visit Valencia on vacation end up falling in love and deciding to settle here.

If you are looking for the best area in Valencia to invest in real estate, now is the best time. With sustained market growth and still competitive prices, investing in this city promises to be a strategic and profitable decision.

Type of investments in the best areas of Valencia

The decision to invest in a property in Valencia will depend on your specific objectives. Are you looking for quick appreciation, rental income, or a combination of both? Let us tell you about some projects…

Invest in a sales project

This type of investment involves buying a property with the purpose of making a partial or complete renovation, increasing its value, and reselling it on the market. For this investment to be successful, we must consider three key factors:

• Purchase price: Ensure that the initial price of the property is not excessively high so that the investment in the renovation is profitable. Look for opportunities in homes that need improvements but have significant potential for appreciation.

• Condition: Opt for homes that, although they may need renovations, are structurally sound. Aesthetic and functional improvements can significantly increase the value of the property.

• Location: It is fundamental in the appreciation of a property. Look to invest in a home in Valencia near services and transport, as they usually offer higher returns on investment after renovations.

Buying to rent in Valencia

If your goal is to generate recurring income through rent, Valencia offers a robust and diverse rental market. Before jumping to acquire a property to rent in Valencia, it is important to know the state of the rental market in the different areas of the city.

Investing in properties located in the best area of Valencia, such as El Pla del Real or residential developments like Alfinach and Los Monasterios, can guarantee a high demand for long-term tenants, as they are some of the best areas to buy villas in Valencia, especially for families and professionals.

What is the best area to invest in real estate in Valencia?

Regarding the areas of Valencia that present interesting investment opportunities, the city is divided into 19 districts, each with its own prices and types of properties. Although the old town (Ciutat Vella) is very attractive, investment opportunities are limited and tend to be expensive.

Most of the new construction is concentrated in expanding areas like Quatre Carreres and Campanar. These areas are not only experiencing significant growth in terms of infrastructure and urban development but are also attracting the attention of investors due to their long-term appreciation potential.

For long-term rentals, El Pla del Real emerges as a standout option. This area combines proximity to the city center with closeness to the university area, making it ideal for both students and families looking for a convenient and well-connected location.

If your goal is to attract foreign tenants, the coastal area is the best area to invest in real estate in Valencia. The demand for properties by foreigners has shown continuous growth, representing more than a third of the total demand in the province.

Types of rentals in Valencia

When investing in Valencia, choosing the best area to invest in real estate is fundamental to maximize your profitability, and there are several options to consider depending on the type of tenant you want to attract.

Investing in properties near universities is an excellent option if you want to rent to students. These homes with multiple rooms allow for renting by the room, increasing yield. Areas like Blasco Ibáñez and Benimaclet are highly demanded by students.

If you want to buy for tourist or vacation rentals, you need to know the current regulations. Look for apartments near the center or the beach, as these are the most sought-after areas by tourists. Although the old town has suspended licenses, areas like Arrancapins, La Petxina, and El Cabanyal are excellent growing alternatives.

Choosing the best area of Valencia to invest in real estate depends on the type of rental you want to offer. Analyze your options and select the right location to maximize your investment.

Tips for investing in properties in Valencia

If you want to start investing in real estate in Valencia, some of these tips can be very helpful:

Before making any investment, study and analyze the real estate market in Valencia. Knowing the prices by area will allow you to identify solid investment opportunities and evaluate the appreciation potential of each property.

It is advisable that the mortgage payment for your investment doesn’t exceed 40% of your monthly income. Exceeding this limit could put the profitability and security of the investment at risk. In addition to the mortgage loan, consider additional expenses such as IBI (property tax), community fees, etc., to accurately calculate the total costs of the property.

Each area in Valencia has its own unique characteristics and advantages. It is essential to familiarize yourself with the city or seek professional advice from a real estate agency experienced in local investments. Expert advice will help you better understand the dynamics of the local market, identify areas with the greatest growth potential, and meet the specific needs of your investment strategy.

You might be interested in → Investing in luxury real estate in Valencia as a golden opportunity

If you are looking for the best area in Valencia to invest in, at Monserrate Real Estate Premium Home Agents we want to help you make the most of your investment. Our team will accompany you every step of the way: from the initial market analysis, property visits, offer management, technical and legal due diligence, negotiations, all the way to contract formalization and, if necessary, even renovation and interior design.

Now that you have this guide to investing in real estate in Valencia, do not hesitate to contact us. We look forward to speaking with you and helping you with your next investment!