A decade of transformation has made Valencia more popular than ever. In today's post we are going to look at what it means for people looking to call the city and indeed Spain their home.
Something remarkable happened in Valencia over the last ten years. While Madrid and Barcelona grabbed headlines with soaring prices, Valencia quietly evolved into something special: a major European city where normal people could still afford to live well. Not just survive, but truly thrive.
The Reality of Living in Spain's Big Three
Now you'll notice I said above, "could". That is changing as prices rise. Let's talk real numbers, the kind of numbers that matter when you're planning your life, not a property portfolio. Today, the average price in Valencia city is €2,886/m according to official figures but the figures lack the reality of the surging market. Expect to pay around €3500/m² on average, which means a comfortable 80m² flat costs around €280,000. Don't expect that in the centre though. The same space in Madrid (€4,800/m²) would set you back €384,000 by official figures, while Barcelona (€4,661/m²) demands €373,000 officially, but equally prices in the centre of those cities are considerably higher.
But here's what those numbers really mean: In Valencia, a teacher, nurse, or graphic designer could still afford to buy in the city if they can secure a mortgage because mortgages are a better deal than rentals currently. The rental market tells a completely different story. With average rents now reaching €1000-€1,400 pcm for a one-bedroom flat, many locals are finding themselves priced out of the market and they are having to move further out. This is especially true because Spanish wages haven't kept pace with the property boom.
Valencia's neighbourhoods tell different stories. Yes, premium districts like L'Eixample and Ciutat Vella have reached over €4,000/m², but vibrant areas like Patraix, Benimaclet, and even the Cabanyal offer authentic Valencia living at prices that make better sense for buyers. The suburbs on the metro routes into the city, at €2,000–€2,600/m², provide green spaces and family-friendly communities that would be fantasy prices in Madrid or Barcelona.
Understanding the Ten-Year Journey
Valencia's transformation from €1,500/m² in 2015 to today's €2,886/m² (Officially) isn't just about rising prices, it's about a city that has grown into its potential while maintaining its soul, though this hasn't been without challenges for local residents.
These numbers reflect Valencia having been discovered for sure but they also point to the growing gap between property prices and local salaries. The average Valencia salary of €24,000-€28,000 annually (Around 2000 Euros per month) hasn't doubled in the last decade like property prices have and that creates a problem.
The Buy vs Rent Dilemma: Why Ownership Makes Sense
Here's the crucial bit that keeps everything in check and aspiration alive currently. Mortgage rates in Spain are remarkably low compared with places like the United States or the UK, starting from 2.5-3.5% for residents and non-residents alike. When you're paying €1,000-1400/month in rent as opposed to €850/month* for a mortgage on the same property, the maths become crystal clear but only if you can get that deposit together.
*A 160,000 Euro mortgage at a fixed rate of 3% over 20 years will cost around 870 Euros per month. Even a 240k mortgage will only be 1300 Euros per month more or less, so around the same as a rental on a one bedroom flat with the guarantee that the price will remain fixed for twenty years unlike the rental.
Government Schemes Are Helping to Break Down Some Barriers: The Spanish government has belatedly recognised the crisis and is slowly moving to help with the difficulties many people but most especially the youngest have with getting a place to live. Government schemes for under-35s and first-time buyers include:
- Guaranteed deposits requiring only 5-10% down payment (versus traditional 20%+)
- ICO loans covering up to 20% of the purchase price
- Purchase tax deductions for young buyers
- Subsidised interest rates for qualifying purchasers
These programmes have created a surge in young buyers entering the market too which has added even more upward pressure to purchase prices. That probably wasn't the intention but... the law of unintended consequences and all that...
Why Valencia Works (With Some Caveats)
A City in Transition - Valencia's growth comes from people actually moving here to live, work, retire or to raise families. Remote workers with international salaries have discovered they can maintain careers whilst enjoying Mediterranean life too. This influx has made it harder for locals earning Spanish wages to compete, particularly in the rental market where landlords often try to charge premium rates to international tenants.
Space to Breathe (If You Buy) - Unlike Madrid and Barcelona, where affordable housing scarcity has reached crisis levels, Valencia still offers purchase options. You can find that flat with a terrace, that house with a small garden, that loft with character – but increasingly only if you're buying, not renting. The rental stock has become a battlefield between locals, students and international arrivals and as a result landlords are rubbing their hands with glee... (or greed) on long term rentals.
Infrastructure That Serves Residents: Valencia's improvements haven't been about attracting speculators. They've been about making life better for those of us living here. The Turia Gardens provide 9 kilometres of green space through the city. The Metro system connects neighbourhoods efficiently and grows each year. Bike lanes make car-free living realistic, many of our clients decide to forego having a car in Valencia. These aren't tourist attractions, they're daily amenities that make Valencia work.
However... Communities Are Put Under Pressure - In neighbourhoods like Ruzafa, Benimaclet, and Cabanyal, traditional communities are evolving. Long-time residents rightly worry about being priced out, and although newcomers bring fresh energy and international perspectives and sometimes new business ideas, local shops where owners knew everyone's name now serve a changing clientele. This transition brings both opportunities and challenges.
International, But Increasingly Divided - The growing international community has brought diversity and dynamism, but also economic disparities. Your children's school might have students from twenty countries now, but local families increasingly struggle to afford housing in their own neighbourhoods when they want to move out from the family home and therefore their children may be forced to move schools with them. It's the same the world over in places with demand unfortunately.
Making Valencia Home: A Practical Perspective
For those considering the move, Valencia offers something increasingly rare, but the path differs dramatically depending on your situation:
Young Professionals and Families: If you can get together the deposit (possibly with government help if you're under 35), buying makes absolute sense. A €180,000 flat on the outskirts of Valencia with an €18,000 deposit (using government schemes) or maybe less with the ICO guarantee costs less monthly than renting and the difference is growing. But without that deposit, you're stuck in the rental trap with prices rising.
Remote Workers: Your salary from London, Amsterdam, New York or Munich transforms you into a cash buyer or premium borrower. Your €4,000/month salary that barely covers rent in those cities makes you comparatively wealthy here. But be conscious that you're part of the pressure on local housing stock in the rental market so maybe look to buy too rather than lining the coffers of landlords as they are essentially taking advantage of your higher salaries.
Locals and Spanish Earners: The reality is harsh. Unless you can access family help (bank of mum and dad) or government schemes for that crucial deposit, you're facing rental prices that consume 40-50% of your income or more. The message is clear: buy now if you possibly can, because renting is becoming unsustainable and the same may happen in the not too distant future in the buying market.
Students and Starters: The rental crisis hits hardest here. Shared flats that cost €200-250 per month per room five years ago now demand €400-500 and rooms are getting smaller, sometimes there are apartments with no communal living room as that has been converted into an extra bedroom. As a result many young Valencianos still live with their parents well into their 30s, desperately trying to save for that deposit that represents their only escape from rental poverty while the amount needed for that deposit gallops relentlessly higher.
Looking Forward: Valencia's Sustainable Path?
Valencia's growth story isn't about becoming the next Barcelona – it's about being the best Valencia can be whilst grappling with affordability. The city is actively working to maintain its livability (Is that a word?) even as it grows. New developments must include affordable housing (though the term "affordable" remains relative). Historic neighbourhoods are protected from wholesale transformation which, although laudable, means no extra units are created for alleviating the housing crisis. Public spaces remain genuinely public.
The push toward ownership through government schemes and the attack on short term rental licences might actually work to stabilise the market long-term. More owner-occupiers mean fewer properties churning through the rental market at ever-increasing prices and although rent controls seem the most obvious way to put a brake on price gouging, their real effect is to reduce the numbers of properties on the market. This transition period is going to continue to be painful for those caught on the wrong side of the divide.
The Valencia Question: Can You Make It Work?
Valencia in 2025 isn't selling a dream, it's offering a reality, though one that's increasingly difficult to achieve for many. For those who can buy, it's as close as you can get to paradise: low mortgage rates, possible government support, and property and cost of living prices well below Madrid and Barcelona. For those looking to rent, it's becoming a struggle that mirrors problems across Europe's desirable cities.
The transformation of the past decade has made Valencia more accessible and better known to international buyers whilst making it harder for local renters. That's the honest story here – not just that prices have risen, but that the gap between buying and renting along with the availability of low interest rates for those able to save the deposit has created two different Valencias.
The message is clear: if you're coming to Valencia and can possibly buy then do it. You probably won't be able to use any government scheme that's available but get a mortgage and stretch for that deposit as mortgage rates are hugely attractive. The alternative, renting, is becoming a luxury few can or even want to afford long-term. Maybe get yourself a Stepping Stone Rental for three months to start but come for your visit, come prepared to act quickly and come with your mortgage pre-approved. In Valencia's current market, hesitation means losing out.
Living in Valencia 2025
🏠 Rental Reality Check
Average price for a one-bedroom flat
🏦 The Mortgage Advantage
Property Of The Week: Godelleta 230k
When a house gets the basics right at a decent price you know it's a possibility. This villa near to Calicanto in Godelleta offers a lot of the basics.
You have a large 1000m2+ plot full of fruit trees, a barbecue area, an excellent filtered ground level pool, and plenty of storage with a garage and washroom. And of course you have a villa set amongst this space.
At just over 100m2 the villa has four bedrooms, one with en-suite bathroom, large living room, large kitchen, another bathroom and hall. The space is well used and there is also a covered terrace to the front overlooking the pool.
The place is almost ready to go but needs a little TLC as there is a damp issue in two places which we think is because the bathrooms need retiling and regrouting. The affected areas will need treating and repainting afterwards.
The building is flat roofed giving plenty of options for a phalanx of solar panels which you could connect up to batteries easily enough to avoid electricity bills in our sunny climate or equally you could just put a pitched roof up there and increase the insulation.
Take a look at the photos and arrange your visit. Better seen in person in my opinion.
Stepping Stone Rental of the Week
Available in November, this excellent property in the Botanical area is a great Stepping Stone into Valencia.
Welcome to our Botanical Oasis! Excellent location in Quart neighborhood "El Botanic". It's just a few minutes away from Ciutat Vella and all central landmarks.
- One double bedroom and one single interior room (used more for a wardrobe and storage as it has no window. However still it has one comfortable bed, if needed);
- Two bathrooms! The master bedroom has it's own ensuite!
- Big living room with American style open kitchen with all necessary amenities - Fridge, oven, microwave, dishwasher, washing machine.
- Very nice balcony that is like a little oasis.
- Air conditioning unit in the living room; and designer fans in all rooms.
- Recently renovated with designer furniture - kitchen with a lot of storage space, wooden floor, noise-isolated walls.
If You Liked This...
Then of course make sure to check out our previous posts, socials and podcasts. Just click on the images below to read more.
The One Big Mistake Everyone Makes How importing mindsets and situations gets things wrong for you when you move to #Spain buff.ly/ZN1zExw
— Graham Hunt (@grahunt.bsky.social) October 18, 2025 at 10:01 AM
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Three signings this week but I was only at 2 of them. Happy campers buying in Valencia and L’Eliana. (And one of the notaries was definitely Steven Merchant)
— Graham Hunt (@grahunt.bsky.social) October 17, 2025 at 2:57 PM
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Buying Through a Company Structure?
Should you buy a Spanish property through a company structure? Our latest podcast answered that question.
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