Valencia is attracting a lot of interest from national and international property investors, as it is a city with more affordable prices than Madrid and Barcelona and will offer more business opportunities in the coming years. Let's find out more about why investing in Valencia is a good idea when it comes to property investment.
This is the main conclusion to be drawn from the latest report published by the high-end real estate company Engel & Völkers, which states that both central buildings and commercial premises are on the radar of real estate investors in Spain and abroad.
According to Verónica Piñón, director of the Commercial, Retail & Investment division of Engel & Völkers Valencia, "the situation of political instability in Barcelona and the saturated market in Madrid means that the vision of investors points to Valencia, which is at an exceptional moment, as we have not yet reached pre-pandemic prices, so the following years will be full of great business opportunities".
Currently, assets in prime locations in Valencia are already more profitable: while in the Spanish capital and the Catalan capital yield is around 3%, in Valencia it is over 4%.
Foreign real estate investors, mainly from Central Europe, are the most interested in investing Valencia and are focusing on central buildings to buy for amounts of between 2 and 5 million euros, for example, to use them as hotels. In addition to the city centre, another highly sought-after area is the Ciudad de las Artes y las Ciencias, which is emerging as an important focus for investment in the short and medium term, according to Engel & Völkers. Spanish investors in Valencia, on the other hand, are more interested in commercial premises for different businesses, from restaurants to gyms, as well as furniture shops.
According to Piñón, the second half of the year will be marked by "a greater movement in investment decisions" and, given this forecast of greater interest in Valencia, the real estate company has decided to restructure its commercial division, specialising in the tertiary sector, which includes offices, commercial premises and warehouses; as well as the investment division, which focuses on unique buildings, car parks, hotels, residential and industrial plots.
The company currently has a portfolio of 400 properties in the city, including, for example, Myrtus, a building located on a plot of more than 5,600 m2 and which is aimed at both companies that want to have an emblematic space with exclusive facilities and those that want to use it for activities and events related to national and international leisure. This unique building is located in Puzol, on the outskirts of Valencia, and is the work of the Valencian architect Ramón Esteve.
While Valencia is also becoming more popular amongst real estate investors, investing in residential property, such as a holiday home, is also a great option in Valencia. Valencia is Spain's third largest city and property prices in Valencia are once again lower than those in Madrid and Barcelona.
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