Analysis real estate market Valencia: house prices still on the rise

Buying a house in Valencia is a good investment, according to the latest analysis real estate market of the Spanish research agency Tinsa. We take you through a brief analysis of the real estate market and development of house prices in Valencia.

General situation housing market Spain

Prices of new and existing homes in Spain have increased by 8.2% over the past 12 months.

The average value of 1,685 euros per m2 reported in Tinsa IMIE Local Markets’ statistics for the second quarter represents an increase of 2.4% compared to the previous quarter. This maintains the trend we saw in the analysis real estate market Spain Q2 2022.

The average value of new and existing homes in Spain is still, on average, 21.8% below the record level of 2007. This even after an average value increase of 30.5% since the low point during the financial crisis (first quarter of 2015).

“We continue to observe an active demand that goes hand in hand with a limited supply and drives up prices, despite the fact that cumulative sales figures show a slight slowdown compared to the same period in 2021.” says the director of research at Tinsa, Cristina Arias.

Charting the growth in sales prices in Spain

Prices real estate in Valencia city

Of the major cities in Spain, Valencia currently ranks second in terms of price growth over the past 12 months. Property prices in Valencia city are now on average 8.5% higher than a year ago! To give you an idea, the average rate in Spain is between 3 and 7%.

Valencia maintains the high pace of the previous quarters with strong year-on-year increases of more than 10% in three districts: Quatre Carreres, Rascanya and Campanar. Quatre Carreres stands out with a 14.2% price increase over the past year. This is partly due to the fact that a lot of new construction is taking place in this district on the outskirts of the city.

Property prices from 2,000 euros per square meter can be found in Ciutat Vella, Eixample and Pla del Real, and this quarter the district of Campanar added to this list, by exceeding the limit of 2,000 euros per square meter.

Return on investment in Valencia

The price increase also says something about the return buyers can get on their home in Valencia. It still makes Valencia interesting for foreign buyers looking for a good return on their investment.

The map below shows in green: the average price per m2 per district, in blue: the average price increase year on year per district and in yellow: the gross rental yield per district.

The average for Valencia city is:
Price: 1,731 euros per m2
Price increase: 8.5%
Gross rental yield: 4.7%

Click to enlarge image

Thus, the average gross rental yield for the city of Valencia remained the same compared to the previous quarter. Valencia also remains in the top 2 highest average rental yields in Spain.

Conclusion property analysis Valencia Q2 2022

Looking quarter-on-quarter, real estate prices in Valencia go up slightly each time, averaging about 1 to 2 percent. That may not seem much, but you can already see a year-on-year increase of almost 9%. Something that indicates that investing in Valencia still pays off, especially as a long-term investment.

Want to read more about how and where you could invest in real estate in Valencia? Then read our special page Investing in Valencia.