How much does it cost to buy in Valencia? According to TINSA, average property prices are at €1,424 per square meter, while Idealista gives a higher figure, at €1,770 per square meter.
So, which number is more accurate? Is now a good time to buy?
About Valencia
Valencia is the 3rd most populous city in Spain after Madrid and Barcelona, with 0.8 million inhabitants. However the region (Valencian Community) counts 4.9 million people.
A strong particularity of the Valencian Community is that 35.6% of buyers are foreigners (LaVanguardia). Therefore, Valencia is the region which captures most foreign buyers in Spain, together with the Balearic and Canary Islands (elPais).
In terms of geography, the Valencian Community is made of 3 provinces: Castellon (600K people), Valencia (2.5 million), and Alicante (1.9 million).
Overview of the Valencia Property Market
Valencia’s property market is going well. As we can see on Kyero, all key real estate indicators are encouraging, whether we look at the number of transactions, or at house prices.
House sales
The number of house sales is on the rise since 2013. So the Spanish property crisis is long forgotten. According to LaVanguardia, Valencia’s community registers 78,000 real estate transactions this year. While this number is strong, it indicates a slow-down after strong 10% to 20% yearly growth from 2012 to 2018.
Below you can see this dynamism graphically (Kyero). The blue line tracks the number of transactions, or house sales, in Valencia’s province.
Valencia is the most active Spanish property market. Indeed, it records the highest number of transactions per 100,000 inhabitants
ElMundo
Property prices in Valencia
50% of homes over-priced in Spanish biggest cities
- Read about real estate prices in Spain
Did you know that more than 50% of the properties available for sale in Spain’s biggest cities are over-priced (ElConfidencial)? So, if you’re a buyer, you need to watch out and negotiate. And if you’re interested by real estate prices, keep reading.
We will look at house prices according to TINSA (leading property valuation company) as well as Idealista (leading property portal with Fotocasa.es), so as to compare both.
House prices according to TINSA
According to Tinsa‘s data, house prices in Valencia stand at €1,424 per square meter (Q3 2019), compared to €1,077 per square meter in the Comunitat Valenciana (region).
House prices according to Idealista
Idealista’s data shows that property prices are at €1,770 per square meter. However, as we stated before, 50% of the houses available for sale, available on the market, are over-priced. So, although Idealista is a great source of data, this price reflects the properties for sale published on Idealista.
Comparing Valencia with Barcelona
As you can see on the graph, I compared Barcelona and Valencia, second and third biggest Spanish cities. While Barcelona has strongly recovered from the crisis, Valencia is recovering in a slower way. Indeed, Barcelona’s house prices are back to what they were in Q2 2005, while Valencia’s real estate prices are back to Q3 2004. In other words, Valencia is recovering slowly but surely.
Valencia is recovering slowly but surely
How cheap is it to buy a home in Valencia?
The good news is that it’s significantly cheaper to buy a home in Valencia now, that it was in 2007. Indeed, since the maximum values (2007), the value of real estate has depreciated by 40.7%.
Today’s prices are still €1,000 cheaper per square meter, compared to 2007. In other words, on a budget of €200,000, a buyer could afford 83 square meters (€2,402/m2), while today €200,000 would buy 140 square meters (€1,424/m2).
House prices in Valencia are €1,000 cheaper per square meter compared to 2007
(€1,424 versus €2,402)
TINSA
Prices go up… prices go down… and up again
Prices in Valencia went up significantly from 2002 to 2007 (green columns), before the Spanish real estate crisis happened. Since the end of 2015, we’re back to a positive cycle. However, the yearly growth rate is lower compared to the 2002-2007 period. Indeed, annual growth rate remain below 10%, while they reached 20% from 2003 to 2006.
Rental yields in Valencia
Although real estate prices increase, rental prices have grown even faster. Indeed from November 2018 to November 2019, rental prices in the Valencian Community increased by 7.4%, while property prices increased by 2.8% only.
In more details, TinsaDigital claims that Poblats Maritims is the Valencian neighborhood with the highest rental yield. Yet another ranking, by Solvia, claims that Malvarrosa (10%) and Poblats Maritims (12%) are the top 2 neighborhoods in Valencia for rental investments.
