Valencia is a great city to make an investment in real estate, in all areas in Valencia. Housing is in demand both for holiday rentals and for students and expats too. Prices are growing and are back to their pre-crisis 2005 levels which is great news for the property market not just in Valencia but all over Spain.
So if you want to have a good investment that will almost certainly grow and won’t require too much maintenance, have a look at some of the areas in Valencia.
Ruzafa is one of the hippest, coolest, most interesting, fun, and expensive place to buy accommodation. Having undergone 15 years of gentrification, the garages and workshops have been replaced with boutiques and bars, cereal shops and terraces. Everybody in Ruzafa is happy with the barrio, there’s lots to do, the people are friendly and there are literally hundreds of restaurants serving food from all over the world.
The prices for accommodation in Ruzafa are high in comparison to the rest of Valencia. Most people that come to the city find their way to Ruzafa quickly. In real terms, don’t budget under €200,000 as this is close to the limit, but realistically you should be looking closer to €300,000. Of all the areas in Valencia, Ruzafa has the highest demand, specially from foreigners.
The beach area is known as La Malvarrosa, and just set back behind the Malvarrosa is a neighbourhood known as the Cabanyal. Both of these areas have changed a lot in the last ten years. Tourism has increased dramatically since the America’s Cup and the Formula 1 events, meaning higher prices and more demand. Restaurants are popping up frequently and prices have started to rise. If you want to live near the beach, this is where to buy.
Though it seems housing prices haven’t yet hit the top, it’s not cheap to get a place in this area and a budget of €250,000 should be the lower limit. There is room for prices to grow so there is a good case for property investment in this area. Cabanyal has become one of the most attractive areas in Valencia for foreign investors.
Nazaret has always had a bad reputation. Just set back from the port, it’s a small village which is actually part of the city of Valencia. Once there was a beach here until the port was extended and it was sadly taken away from the locals. Housing here can be picked up from €50,000 – €150,000. Yes, very cheap. But what you might not know, is that there is a Metro connection opening and Valencia Council have budgeted €350,000 for a brand new park between the village and the port.
For expats, this could be the perfect place in ten years’ time, with easy access to the port for work, Nazaret could become one of the most expensive places Valencia. It’s location is perfect for working expats and though it may take time for prices to rise, it could make an interesting long-term investment.
The old town of Valencia. Smack in the middle of the city and featuring the cathedral, the Central Market, the famous Calle Caballeros and much much more. El Carmen is an expensive place to buy a flat, tourism is huge in this area of the city. Getting lost in the labyrinthine streets of the barrio is a great way to spend the day and there are bars and restaurants never more than 50 steps away.
Investment here is high and always has been. Having a flat near the cathedral or perhaps overlooking Plaza de La virgen is the prime location in Valencia, prices go very much with the market, it’s a great place to live, but as an investment, you will only see small growth over a long period.
Surrounding Valencia are the “sleeping villages”, the most typical being Burjassot, though there are many others, (Quart de Poblet, Silla, Paterna). In Spanish, these pueblos dormitorios are known as being places to go home to sleep and not much else. In the daytime, people travel to work in Valencia before making the 10km journey back to the cheaper villages where they can afford housing. There is not really much prospect that Burjassot will become a new urban hipster area, so it’s unlikely that investment in this area is going to make you a millionaire. But it is cheap. In Burjassot you can find 3-4 bedroom apartments with 2 bathrooms for under €100,000.
This area makes the middle ground. Not crazy expensive, but you won’t find anywhere cheap. It’s a great neighbourhood and there is a spirit of camaraderie amongst the locals. It’s probably more suited to younger people and students. Benimaclet is currently undergoing the gentrification that Russafa saw in the two-thousands, so as an investment you are likely to see positive equity short-term, making it a very interesting prospect for property buyers.
Way north of the city is many urbanizations, which are residential estates with large garden, garages, swimming pools, all in all, more typical of the United States or Britain than Spain. Depending on the estate you choose, you will almost certainly have a swimming pool and access to communal tennis courts and a gym. For families, older expats and retirees, villages like L’Eliana are the perfect places, quiet, sunny, plenty of fellow expats and local restaurants. But the prices do reflect this. For property investors looking for quick returns, these villages don’t make the ideal investment. But they do make a great place to live for people making longer-term family investments and are not so interested in money alone.
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