Valencia Catching Up with Madrid and Barcelona

Valencia, situated on the southeast coast is Spain’s third largest city after Madrid and Barcelona, with some 800,000 inhabitants.

The city has many attractions including the Central Market of Valencia, Valencia Cathedral, La Lonja de la Seda (an impressively grandiose 15th century building) and the huge shark aquarium and dolphinarium L’Oceanogràfic.

All of this has been attracting overseas property investors to Valencia over the last few years, and that trend is likely to continue.

While Madrid and Barcelona surged ahead in the Spanish property market recovery, Valencia seemed to get a bit left behind, but no more.

Residential property prices in the Spanish port city rose by a huge 19 per cent last year, according to Engel & Völkers.

Miguel Ángel Cantos, managing director of the Engel & Völkers Market Center Valencia, said: ‘In 2018, sale prices for residential property rose by 19% compared to the previous year. Underlining the fact that Valencia is one of the up-and-coming regions, after The Balearics and Canaries, and is also one of the most popular locations for international buyers.’

As well as the British, this strong demand from international buyers includes French, German, American and Chinese purchasers eager to invest in renovated properties either for rental or as a capital investment, with the most exclusive properties located in Valencia’s city centre.

Over the last few years, the coastal districts of Patacona, Cabanyal-Canyamelar and Malvarossa have become highly desirable among purchasers, with property prices also unsurprisingly rising as a result.

Particularly sought-after are modern freehold apartments and large villas directly on the coast or with sea views, where top prices of up to €6,400 per square metre were achieved in 2018.

Currently, the market in Valencia is still dominated by national buyers, who account for roughly 75 per cent of all sales. The remaining 25 per cent come from France, Russia, the UK and Italy, with investors from overseas most interested in exclusive villas and freehold apartments for use as second homes.

This upward trend is expected to continue according to Engel & Völkers, with the rise in demand from international and national prospective buyers remaining consistently high.