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The housing market in the Valencia region remains in a state of flux. New figures confirm what we as real estate agents in Valencia notice on a daily basis: demand is high, supply is limited with the inevitable result: prices are rising. In this Analysis Real Estate Market Valencia 2025 Q1, we list the latest trends for you, focusing on the Comunidad Valenciana, the province of Valencia and, of course, the city of Valencia itself.
General situation real estate market Spain 2025 Q1
In the first quarter of 2025, the average price of existing and new-build homes rose 7.5% from a year earlier and 2.9% from the previous quarter. If we exclude inflation, the actual price increase comes to 4.7% year-on-year. This means that house prices in Spain are again rising faster than in the previous quarter.
The European Central Bank’s 2024 interest rate cuts have made it easier to get a mortgage. However, almost half of homes are still bought without a mortgage.
The construction sector continues to struggle to meet demand. In January, the number of new homes completed remained almost the same as last year (-0.4%), according to the Ministry of Housing. This is mainly due to the shortage of building land in sought-after areas, further fuelling the rise in house prices.
More on Spain’s Q1 2025 real estate figures can be found here.
Property prices Valencia vs other regions in Spain
Property prices in Valencia show a strong increase, both year-on-year and in the last quarter. Compared to other regions in Spain, Valencia is among the leaders: the province recorded an annual price increase of 10.1%, equal to that of Alicante province and at the same level as popular areas such as Málaga and Madrid. The city of Valencia itself also stands out with a 14.5% year-on-year price rise and more than 5% in the last quarter. With this, Valencia not only leaves other cities in the region behind, but is growing faster than many other Spanish capitals.
Yet absolute prices here still remain below the level of top cities like Madrid and Barcelona, keeping Valencia attractive to buyers looking for a dynamic market with growth potential.
Property prices Valencia city by neighbourhood and district
Property prices in the city of Valencia vary significantly depending on the district or neighborhood. The most expensive areas include Ciutat Vella and Ensanche (l’Eixample), where average prices exceed €3,000 per square meter. In Ciutat Vella, the average is €3,186/m², and in Ensanche it’s €3,103/m² – both highly desirable thanks to their central location, historic buildings, and vibrant city life.
What’s more, Valencia continues to show strong year-on-year price growth. Most districts have seen increases between 9% and 19% over the past year. The standout is Patraix, with a remarkable 24% increase. Even on a quarterly basis, prices are still rising, from +1.5% in El Pla del Real to +6.6% in Poblados del Oeste.
To highlight Valencia’s value even more clearly, here’s how its average price per square meter compares to other major international cities:
| City | Avg. price per m² | Annual growth | Notes |
|---|---|---|---|
| Valencia | €2,362 | +14.5% | Strongest growth among Spanish cities |
| Madrid | €4,285 | +15.1% | Higher prices, consistent demand |
| Barcelona | €3,998 | +8.0% | High per m², steady performance |
| London | €13,000–€18,000* | +2% to +4%* | Much higher entry point, limited growth |
| New York City | €12,000–€17,000* | +1% to +5%* | Pricey and highly competitive |
| Los Angeles | €8,500–€11,000* | +3% to +6%* | Still significantly more expensive |
*Estimates based on recent average prices in central urban areas, converted to EUR.
Valencia offers a compelling mix of affordability, lifestyle, and growth potential — a rare combination in today’s global property market.
Return on investment in Valencia according to CAGR
How well does a property in Valencia yield in the long term? A handy way to measure that is through the CAGR (Compound Annual Growth Rate): the average annual return over a five-year period. For those who bought a house in Valencia five years ago, it appears to have been a smart move. The compound growth rate here is 8.5% – one of the highest in Spain. By comparison, the national average is 4.7%. That makes Valencia not only a wonderful place to live or spend the winter, but also a very attractive region for investors.
Conclusion and forecast real estate market Valencia 2025
Property prices in the Valencia region continue to rise – and that’s good news for those looking to invest smartly. Whether you are looking for a second home, considering a permanent move or looking to make a solid investment: Valencia currently offers a unique combination of growth, potential and affordability.
Property prices in Valencia are expected to continue rising through the rest of 2025. The combination of relatively low prices, high quality of life, foreign interest and limited new construction ensures continued demand pressure on the market. In particular, properties in sought-after neighbourhoods such as Ruzafa, El Carmen and Cabanyal are driving fast sales. For buyers, this means: getting in now is smart, as Valencia is catching up with Madrid and Barcelona. The city remains attractive for those looking for sun, sea, culture and a good investment.
Would you like to know more about buying a house in Valencia? As an estate agent, we are happy to help you every step of the way: from the first viewing to handing over the keys. Let us know what you are looking for in a free Property Finder Service or contact us without any obligations.
Source: TINSA
