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The real estate market in Valencia is once again proving that it is one of Spain’s most resilient regions. The latest figures for the second quarter of 2025 confirm a pattern that can no longer be ignored: the region continues to grow structurally, with solid price increases at all levels, from city to province and in comparison with the rest of Spain. These increases are increasingly accompanied by sustained high interest from international buyers.
In the Valencia Real Estate Market Analysis 2025 Q2, we dive into the property data for the second quarter of this year and examine what it means for buyers and investors in the Valencia region.
General situation real estate market Spain 2025 Q1
In the second quarter of 2025, the average house price in Spain rose by 2.6% compared to the previous quarter and by 9.8% compared to the same quarter a year earlier. Adjusted for inflation, this represents a real price increase of 7.7%.
Demand for owner-occupied homes remains robust. In the first half of the year, the number of transactions rose sharply: +10.3% according to notaries and +15.9% according to the Spanish statistics agency (INE). The mortgage market also recovered remarkably, with an increase in the number of new mortgages of +22.1% (notaries) and +25.1% (INE) respectively. More than half of the residential transactions during this period were financed with a mortgage.
On the supply side, we see mixed signals: the number of new building permits increased by +19.4%, but the number of homes actually completed fell by -7.9%, which does not alleviate the shortage of new homes for the time being.
More on Spain’s Q2 2025 real estate figures can be found here.
Property prices Valencia vs other regions in Spain
Property prices are now rising in almost all regions of Spain, but the Comunidad Valenciana has managed to position itself firmly with year-on-year growth of +9.8%. This puts the region at the top of the country, behind Madrid and the Balearic Islands.
What is striking is that the price development in the Comunidad Valenciana is broadly supported. Not only Valencia city and Alicante are performing well, but other parts of the region are also showing stable growth. These include suburban municipalities, coastal towns, and inland areas of the region. At the same time, the average price per square metre here is still well below that of cities such as Madrid and Barcelona, making the region attractive to buyers looking for affordability and potential.
Looking at the provinces, Valencia shows an impressive price increase of +10.5% on an annual basis, exactly the same as Alicante. This makes these coastal provinces among the fastest growing in Spain, together with Madrid, Málaga and Santa Cruz de Tenerife.
Within the Comunidad Valenciana, the difference with Castellón is again striking this quarter, where growth remained limited to +3.7%. This once again underlines that it is mainly the coastal areas around Valencia and Alicante that are benefiting from international demand and domestic migration.
House prices in Valencia city by neighbourhood and district
The city of Valencia showed impressive growth figures in the second quarter of 2025. Prices rose by between +6.0% and +23.7% year-on-year, depending on the neighbourhood. On a quarterly basis, growth ranged from +0.3% to +6.3%.
- Outliers: Patraix, Jesús and Rascaña, +20% to +23.7%
- Most expensive neighbourhoods: Ciutat Vella and Ensanche/Eixample, both above €3,000 per m²
- Still relatively affordable, but rising prices: Poblados del Oeste, Poblados del Norte
The more expensive districts retain their status as sought-after prime locations thanks to their central location, historic character and quality of life. This also makes these locations attractive to investors interested in medium and long-term rentals.
This combination of affordable growth areas and established prime locations makes Valencia attractive to investors, families and digital nomads who want to settle in a city with prospects.
Return on investment in Valencia according to CAGR
Valencia has been scoring high in terms of real estate growth for years. Based on the compound annual growth rate (CAGR) over the past five years, Valencia has a return of 9%, well above the national average of 5.2%. Anyone who bought five years ago has therefore made an excellent investment – and new buyers are now also entering a market with proven potential.
Conclusion on the Valencia real estate market in Q2 2025
The real estate market in Valencia is and remains one of the most dynamic in Spain. The combination of strong price increases, relatively affordable square metre prices and an attractive living environment ensures sustained demand. Both the province and the city itself are benefiting from this trend, particularly in sought-after neighbourhoods such as Ruzafa, El Carmen, Patraix and Cabanyal.
The price increase is expected to continue into the second half of 2025. Due to the shortage of new-build properties, international demand and the growing appeal of Valencia as a place to live and work, now is still a smart time to enter the market.
Want to know more about living or investing in Valencia?
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Source: TINSA
