Having been asked the question about the best places to invest in Valencia innumerable times in the recent past it’s time to put on record my answer. Just before we start though, a few caveats. As with everything involved in real estate the true answer, the short answer which is always correct is “It depends!”. It depends on your definition of the word “investment”, it depends what you want to achieve from the “investment“, it depends on your own use case scenario, it depends on whether it’s a short, medium or long term strategy and it depends on a host of other factors which we will go into later.
In this post though we are mostly going to look at typical scenarios for people looking for return on investment, medium and long term capital gain and people just looking for something that they can live in and over the years it is likely to grow in value. We are also going to look at places in the city and places outside the city in the suburbs of Valencia.
Return on Investment
Most people looking for an investment property want something that will give them a percentage return on their investment week on week, month on month and year on year. Simply put this is worked out by looking at the total cost of purchasing the property and then the potential returns from renting it out. Usually people look at short term rentals (Think Airbnb type rentals) or medium to long term rentals. Long term rentals are the easiest to work out as they have very few overheads, changeovers, cleaning costs, less wear and tear for example. You generally just need to consider the ongoing costs of Council Tax, Community fees and insurance.
When thinking about short term rentals the first consideration has to be the licence issue (That’s the biggie), then you have all of the above costs of a long term rental plus cleaning and changeover fees, advertising, portal costs, management and more. Yes, the daily or weekly rate is higher but the costs are much higher too and you can be ruined by negative reviews.
Long Term Capital Gain
Everyone wants a place that will give them a good return from rental at the same time as appreciating in value over the long term. The way to choose this is to choose an area that is always in demand. Oftentimes this means paying more for the most popular areas and getting a lower return on the rental but you know in the future that property prices are more likely to rise as there is always demand for people wanting to live in that area. As we have seen post pandemic, what people are looking for in an apartment has now radically changed and if you have the basics of outside space, that extra room for work or study and plenty of light and ventilation then an investment apartment will be much more likely to rise in value as the demand is always likely to be strong.
Something To Live in That Will Appreciate in Value
Slightly different to the above criteria. You want the long term appreciation in value but you also want a “nice place to live” while it appreciates. Often people looking for this look to the most established residential areas with their plethora of facilities all within a couple of blocks of your apartment. However there are also people looking more long term who look into great developments that will grow over the years and shops and restaurants will move into the area as the population grows, think Avenida de Francia from 2010 onwards as an example.
Best Areas of Valencia City For Investment
This is actually one of those great pub arguments. As evidenced in many of the Facebook groups talking about Valencia, everyone has an opinion and everyone else’s opinion is invalid of course (That’s how online discourse works right). The typical candidates are the well known areas of Ruzafa, Cabanyal, el Carmen and Ensanche. However, what this guarantees is demand for rental but maybe doesn’t take into account initial cost, these areas are more expensive than other less known areas because of the usual suspects of supply and demand. Below we have detailed our best preferred areas for investment. We realise this is subjective but taking into account demand, potential long term capital appreciation and the comfort of living we have put a thumb in the air and suggested some areas that may suit for a combined return. Remember though they are in no particular order and are considered good for very different reasons.
Monteolivete stands between the City of Arts and Sciences and Ruzafa/Ensanche. Old enough to have plenty of those lovely facades but grubby enough to keep away many of those property investors looking for the caché of Ruzafa/Ensanche and the City of Arts and Sciences. Prices are usually a third lower than these better known areas and rental prices are only slightly lower in general. Looking for that place to do up and put value into? Then Monteolivete might be your friend.
We are going to consider this as one area but don’t forget that there are two markets here. The more hip and trendy crowd of Ruzafa and the more genteel, older money part of Ensanche. Ensanche apartments tend to be larger than Ruzafa so your investment tends to be higher and it used to be the case that prices in Ensanche were higher on a square metre basis but that is largely equalised now depending on the street we are looking at. Ensanche is popular for families looking for easy access to restaurants, nightlife and the marvellous Valencia riverbed park whereas Ruzafa offers proximity to the city centre, the railway and the growing Central Park.
You pay more for your investment here but if you are looking for good returns on short term rentals then there is no better place. However make sure the place you buy has a tourist licence if that is what you are looking for because you are unlikely to get one in the near future if the property hasn’t got it. Long term rentals will more or less guarantee you a good tenant and a medium return with potential for capital growth.
Just north of the riverbed and a pleasant walk into the Carmen and rest of the Old Town, La Zaidia is criminally underpriced compared with the other side of the riverbed. It might not be the best looking area to buy, too many 1970s medium height blocks and a general grubbiness at ground level, but if you are looking for great facilities, excellent communications and ease of getting in and out of the city centre then La Zaidia ticks a lot of boxes. You also potentially get views over the riverbed at a fraction of the price you pay for that privilege near Viveros Park or on the Botanico, Carmen or La Seu areas.
We know that Nazaret has its back to the sea and was totally out on a limb but the latter situation is due to be solved with the extension of the metro into the Barrio and the investment that Levante football club are putting into the area along with the further development on the edge towards las Moreras and the City of Arts and Sciences mean that Nazaret is a hot area for investment right now.
Yes, there are still a few buildings to avoid but they are getting to be few and far between now and the metro line will also be extended towards Cabanyal too according to the local plans meaning that it becomes even more attractive as it gets opened out into the beach area relieving some of that feeling of being cut off. The bike tracks down to El Saler and the Albufera park are an added attraction of Nazaret, living in the city without feeling that you live in the city.
An overlooked gem, Patraix has some excellent areas to live and invest in and is also well priced. Not too far from the centre or anywhere else really and you get a good choice of properties that will give you a decent return for long or medium term rental and even for short term rentals, again if you have a tourist licence. The area around the market and the far end of Calle Jesus are decent areas to look at here.
What? No Cabanyal?
Of course we could have included the Cabanyal, people love it once there and there is plenty of potential for short term and long term rentals but there is just not great availability at the moment. We may update this post and recommend the area strongly but at the moment Cabanyal is more of a final destination rather than an investment in the hope of increasing capital appreciation. The odd good investment property comes up but you might need deep pockets and decide to go for a whole building and have the funds to develop it and also you may be waiting a time for your licence to come through.
Best Areas on The Periphery of Valencia for Investment
Part of the city but not a part of the city, we have chosen four areas on the edge of the city that have effectively become extensions of the city but keep their own town halls and independent streaks.
Cheap, cheerful and as far away from the beach as you can get in Valencia, just over 8km as the crow flies. Mislata is the most densely populated area of any city in Europe apparently (A fact that I find difficult to believe but who am I to dispute facts) Mislata has its own town hall and is considered not to be a part of Valencia but really it is. Mislata is just a few metro stops from the centre, 15-20 mins to the beach on the ring road and has a “Barrio” feeling with plenty of facilities and easy access to the Parque de Cabecera and riverbed. You can still buy decent apartments for under 100k in Mislata and can easily find tenants for renting them long term.
Another place which has almost become a part of the city, almost but not quite. Great if you are looking for student rental type properties, well communicated, great facilities and a lovely old part of town with plenty of two floor houses with classical facades in pedestrianised streets, Burjassot is another place that feels of the city of Valencia without being an integral part.
We have written about the three distinct areas of Alboraya before on these pages. The old town of Alboraya is an excellent location close to the city, close to the beach and close to the ring road for easy access to all parts of Valencia without having a feeling of suffocation. Surrounded by the Valencia Huerta, (think fields of Onions, Tiger Nuts and Artichokes) Alboraya is an extremely pleasant place to live that benefits from that afternoon breeze straight off the sea for the cooling effect in the summer.
Across the metro line from Burjassot and looking into the city of Valencia across the fields of Campanar, Benimamet is an under-appreciated area with plenty of houses looking ripe for development and cheap apartments in mostly 1970s blocks. Benimamet is on the metro line and has a new park on top of the lines which were recently placed underground. There are a couple of areas that are a bit “Lively” but nothing that anyone from any other large city would consider “lively”. Also very near to the Trade Fair so good for rentals for people advertising at the events there.
Best Areas In The Valencia Suburbs For Investment
We have chosen five areas outside of the city in the suburbs for our investment options here. Think commuter towns and think north-west of the city for ease of access, facilities, proximity, demand and most importantly lifestyle.
L’Eliana is the perfect place to live for many people; close to the city, easy access, good public transport, excellent housing, a lovely little town with plenty of things to do, a major shopping centre, great sports facilities, green and inviting, restaurants, cafes and bars, Spanish feeling but with plenty of international residents… essentially suburban living in the sun. You have to pay for the privilege of living in L’Eliana, many years ago I couldn’t afford it so moved to La Pobla de Vallbona next door when we were buying property, but it’s worth it if you have the budget. It was always popular but post Covid it’s now a hotspot with plenty of demand for property and plenty of potential for improving properties that were built years ago but may need a makeover. There are even some plots available for building your own dream home.
After opening up last year post lockdown everything in Naquera under 200k sold as if by magic. Suddenly everybody appreciated the quality of life available there and the excellent value for money. Fast internet, views, cheap property and more with plenty of facilities and easy access to beaches and the north of Valencia with little traffic and plenty of opportunity for cycling and other outdoor pursuits, Naquera is a great place to be.
La Pobla de Vallbona
I’ve lived in La Pobla de Vallbona for over 20 years so it must have something going for it right? As an investment you can find decent priced villas and townhouses and excellently priced apartments with a huge demand. I get three or four calls a week asking for rentals in La Pobla (which we don’t do) and those calling always tell me there’s nothing anywhere available for rent. When you look at the prices of apartments in the town and potential long term rental payments there’s an excellent argument here for buying apartments and townhouses in La Pobla to rent out.
Another of those towns that you pay to enjoy living there. Small village feel just 10km out from the city on the metro line and very quick into the city with some amazing properties, both traditional “colonial style” properties and modern style cubic villas along with the Beverley Hills look of Santa Barbara. One of those places where buying a place to renovate and modernise can definitely pay off as the demand from old and new Valencian money is very high. Competition for these places is high though so expect to pay a premium.
The last of our choices for the towns around Valencia is Betera. At the end of the metro line going through Burjassot and Rocafort, Betera is a nice large town with plenty of facilities on the edge of the Sierra Calderona national park. You can find plenty of newish build apartments, cheap townhouses for renovation and villas on the outskirts at good value prices within a decent distance of Valencia and near to the Escorpión golf course, riding schools, a sports camp for kids, an excellent leisure centre and a plethora of Gastrobars ready to surprise you with their variations on croquetas and bravas.
There is no definitive answer. As stated in the first paragraph, it depends! However we hope that the suggestions above give you more of an idea of what you should be looking for and more importantly where. Whether you want to be in the city, on the edge or in the suburbs there are options available.
You could even go further deep into inland Valencia and find really really cheap properties that work for rentals. Talking about this today I was told that Algemesí is a place where property is cheap as chips and there is just no availability in the rental market. Similar arguments can be made for plenty of smaller towns around the region and you also have the chance to find good weekend and summer rentals in tourist orientated places such as Chelva, Chulilla and Sot de Chera where your return on investment can be more than decent and you also have a lovely place to go to when it is not being rented out.
Whatever your choice we are sure that at Valencia Property we are able to help you. Just click on the image below to be taken to our homepage and then take a look at our further reading below.