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While almost all of Spain appears to be seeing a stabilization of house prices, Valencia, on the contrary, shows little sign of following the national trend. Price increases have been observed throughout the autonomous region, both year-on-year and compared to the previous quarter. Read more about it in the Analysis Real Estate Market Valencia 2023 Q4.
General situation housing market Spain
In quarter four of 2023, the average value of properties in Spain increased by 4.1% compared to the same period last year. In comparison, the third quarter of 2023 it was 5%, the second quarter 4.9% and the first quarter of the year 6.3%. This places the average variation for all of 2023 at 5.1%.
The coastal areas and larger cities see this decline a lot less. An effect of greater demand for second homes for personal vacation use, combined with a buyer profile with high purchasing power and who is less sensitive to the effect of inflation and interest rates in making their purchase decision.
More about Q4 2023 real estate figures in Spain can be found here.
Property prices Valencia vs other regions in Spain
Valencia as a region, as a province, as well as the city is above all Spain’s averages. In the Comunidad Valenciana autonomous region we see a 7.5% year-on-year increase in house prices, in the province of Valencia it is 7.6% and in Valencia city as much as 10.6%!
Moreover, the Comunidad Valenciana is also the autonomous region in Spain where all the provinces show an increase that is above average in Spain: the province of Castellon 6.5%, the province of Valencia 7.6% and the province of Alicante ( which includes the Costa Blanca) 7.8%.
Valencia city has an average square meter price of 2,019 €/m2, which is almost twice as low as in the capital Madrid (3,780 €/m2) and Barcelona (3,714 €/m2). What makes it even more impressive is the comparison with London (7,900 €/m2) or New York City (13,607 €/m2).
House prices Valencia city by district
In 15 of the 19 districts in Valencia City, we see price increases year-on-year of between 8% and 19.8%. The largest increases are seen in the districts of Jesus (19.8%), Poblats Maritims (19.4%) and Benimaclet (16%). The largest quarterly increases are in the districts of Poblats Maritims, Quatre Carreres and Benicalap.
As in previous quarters, the most expensive neighborhoods in Valencia city are Ciutat Vella, Ensanche/Eixample and El Pla del Real, with prices per square meter above €2,400.
Unlike other quarterly overviews, the table below also includes the Compound Annual Growth Rate (CAGR), which is the average percentage growth over a year. Again, we see Poblats Maritims, Quatre Carreres and Jesús leading the way.
Return on rent Valencia
The return from rental income also includes the CAGR, but measured over 5 years. The gross rental yield in Valencia city then comes out at 7.9%. For comparison we take the other major cities: in Madrid the CAGR over 5 years is 5.2%, in Barcelona 2.1%, in Seville 4.9%, Zaragoza 5% and Malaga 6.4%.
The districts with the highest returns in Valencia, are Poblats Marítims (including Cabanyal), Jesús, Quatre Carreres, Benicalap, Campanar and L’Olivereta, with rates between 8.5 and 11.3%.
Conclusion real estate market Valencia 2023 Q4
In the conclusion given in the analysis real estate market Spain 2023 Q4, we already mentioned that investing in Spanish real estate is a good idea, but location does play an important role. Now, in Valencia you’ve already got the right region and the only question left is: what is the reason you want to buy a house in Valencia? Is it for yourself, for emigration or as a vacation home, or are you investing in rentals?
Regardless of your reason, we can help from A to Z. From choosing the right location to the purchase and everything that comes with it (think renovation, finding a rental partner, etc.). Fill out our free, no-obligation Property Finder Service and we’ll do the work for you.
If you have more questions about the real estate market in Valencia, feel free to contact us.
Source: TINSA
