Lorraine Williamson
Valencia’s property market is undergoing a major shift. In 2024, two-thirds of all home purchases in Ciutat Vella—the city’s historic centre—were made by international buyers.
According to real estate agency Engel & Völkers, this rising demand has pushed average property prices in the area to between €700,000 and €800,000.
Valencia property market appeals to foreigners
Valencia has long appealed to overseas residents. However, Engel & Völkers describes 2024 as a year of accelerated demand. A mix of Mediterranean climate, lower property prices, and strong infrastructure makes the city attractive to those seeking either a second home or permanent relocation.
Buyers from the US, France, Germany, and Italy are leading the trend. Many complete purchases without financing, especially entrepreneurs, digital nomads, and retirees, looking for long-term stays.
Coastal and central neighbourhoods top the list
Popular areas include Ciutat Vella, L’Eixample, Algirós, and El Cabanyal. These neighbourhoods have seen steep price increases. In L’Eixample, the average home now costs around €583,000, with some exceeding €1 million. Prices in parts of El Cabanyal have crossed €6,800 per square metre.
Although prices are rising, Valencia remains cheaper than Barcelona or Madrid. The city-wide average is around €3,000 per m², but in a third of its neighbourhoods, that figure is already higher.
Changing demographics and local housing choices
The increase in foreign ownership has sparked concerns over housing affordability. Some residents have started moving to nearby towns, attracted by lower prices and easy access to Valencia via public transport.
Despite the shift, Engel & Völkers argue the trend reflects relocation rather than displacement. Suburban areas are seeing higher interest, partly due to the ripple effects of central property price growth.
Rental prices reflect sales market pressures
Rental prices have climbed in parallel with property values. In 2024, average rents hit €17 per m² in Valencia city and €13 per m² in surrounding areas. In higher-end properties, monthly rents range from €1,150 to €2,000. Premium rentals in neighbourhoods like Aragón can reach €10,000 or more.
Apartments with two to three bedrooms, sized between 70 and 143 m², remain the most in demand. Supply is limited, keeping pressure on the rental market.
High-end growth spreads across Alicante and Castellón
The trend isn’t limited to Valencia. In Alicante, the average property price rose to €620,000 in 2024, with nearly one in five sales topping €1 million. Neighbourhoods such as Cabo de las Huertas and Playa de San Juan are especially popular.
Costa Blanca towns like Altea, Calpe, Moraira, and Torrevieja are also in high demand. In Orihuela’s golf resorts, prices have reached a record €4,256 per m².
In Castellón, the town of Benicàssim is emerging as a luxury hotspot. Prices there are approaching €4,000 per m²—almost double the previous year’s figure.
With demand showing no signs of slowing, the Valencian Community continues to attract foreign investment at record levels. While the growth may moderate in 2025, the trend looks set to continue.
Also read: Record number of foreign buyers snap up Spanish homes