Buying property in Valencia

Valencia is an autonomous region on the eastern coast of Spain. Slightly confusingly, it includes a province, also called Valencia, plus the provinces of Castellón and Alicante.

There is also, of course, the city of Valencia – the third biggest city in Spain. The Valencia province has a population of 2.6 million, with about a third living in Valencia city, making it one of the most populated areas in southern Europe

More to the point for property buyers, it’s also home to expat hotspot the Costa Blanca and the lesser known (but no less beautiful) Costa del Azahar, the ‘Orange Blossom Coast’.

Why buy property in Valencia

Valencia is popular with overseas buyers. It suits those looking for a home in beautiful, untouched countryside, or one right by the sea, and those after a vibrant city life.

Valencia city has become a popular weekend break destination, benefitting from being an alternative to overcrowded Barcelona.

The wider region has a huge variety of places to buy, from the holiday favourites like Benidorm, to the quieter beauty of former fishing villages like Jávea and Dénia.

Valencia’s climate

Valencia enjoys over 300 days of sunshine a year, an average annual temperature of 19°C and mild sea temperatures. August is the hottest month with an average high of 31°C, albeit with the sea breeze softening this. In winter, it rarely gets frosty, let alone snowing, and temperatures are relatively mild, with average highs of 15°C in January.

How to get to Valencia

Your nearest airport will be dependent on where you choose to purchase property in Valencia.

For those that buy on the Costa Blanca, their go-to will most likely be Alicante International airport. This is one of Spain’s busiest airports with plentiful cost-effective flights throughout the year.

If you opt for a home in Valencia city or the surrounding area, then you will head to Valencia airport. It is just a ten-minute car ride from the city or a twenty-minute train.

Valencia is also on a good European rail network, with a train from Paris just about doable in one day.

Where to buy in Valencia

Valencia city

Valencia has an eclectic mix of the old and the new. It is home to beautiful Gothic architecture, such as the La Lonja and the grand Valencia Cathedral. While the City of Arts and Sciences is a complex of exciting new buildings on the Riverbed Turia. Here, you’ll find Europe’s biggest aquarium, a science museum and a 3D cinema with a huge 900 metre concave screen.

The city is also superb for shopping, with the Calle de las Cestas, the Central Market and Poeta Querol Street all being highlights. Plus, the city boasts seven kilometres of beaches, many of them awarded a Blue Flag.

Valencia also has strong green credentials. It aims to become a smart, carbon-neutral city by 2030. It has turned a dried riverbed into a public garden and encourages the use of bikes and electric cars.

If you are moving with family, you’ll find a choice of international schools and work opportunities. However, Valencia has not drawn in the crowds of Madrid or Barcelona, making it a slightly quieter, more affordable choice for property buyers.

Valencian Community

In rural Valencia, home hunters will find the most budget-friendly property options. There are many charming small towns and villages perfectly suited to those looking for a quiet retreat.

Five Valencian villages are listed in the Los pueblos más Bonitos de España (The Association of the Most Beautiful Villages in Spain).

Costa Blanca

The Costa Blanca is the number one choice for international buyers in Spain. It draws people in with its 200km of gorgeous coastline, made up of beautiful Blue Flag beaches and marinas. It’s a golfing paradise too, with ten courses between Jávea and Alicante alone.

The Costa Blanca is home to distinct seaside towns, each with something about it that makes it special. For example, in the north, Dénia is known for its beautiful, ruined castle. While Benidorm is famous for its beachside fun and hedonistic nightlife. Plus, many former fishing villages have been transformed into lovely seaside towns, such as Moraira, Calpe and Santa Pola. Orihuela and Torrevieja have large expat communities of British, French, German and Belgian buyers.

While Alicante, the capital of Alicante province, offers the ease and fun of city living on a smaller scale than Valencia.

Costa del Azahar

North of the Costa Blanca, the Costa del Azahar is less built up with quieter beaches. It is named the Orange Blossom Coast for its stunning natural surroundings of orange, lemon groves, mountains and nature parks. One of the hotspots is Peniscola, known for its medieval castle, old quarter and white-washed buildings.

The Costa del Azahar is also home to Gandia, which is split into the main city and the coastal town. It is a popular second home choice for Madrid residents.

Is a property in Valencia a good investment?

Of Spain’s autonomous regions, Valencia has one of the higher purchase taxes for resale property (or VAT for new builds), which is levied at 10%. For comparison, in Andalusia, purchase tax is levied at 7%. However, as a general rule, you can buy a larger and/or better located property for less in Valencia than in Andalusia.

For those considering renting out a property as a holiday home, Valencia promises lucrative yields. The combination of its pleasant climate and easy travel options means that properties can be successfully rented out for the better part of a year.

Properties close to the sea or located in Valencia city will likely see the best rental yields. It is worth bearing in mind that Valencia is tightening the rules around rental properties: a property’s rental licence cannot be sold with a property, the new owner will have to apply for a new one.

Valencia’s property market

Valencia has an extremely diverse property market. In the countryside, you can find a large countryside home for €50,000, though it will likely need considerable work. Moreover, in Gandía and Oliva, you can easily find a charming old but habitable townhouse for around €100,000. For a little more, you could buy a modern apartment with sea and mountain views.

In the city of Valencia, the price of a small, modern apartment tends to be around €200,000. This is considerably more affordable than Madrid or Barcelona.

While prices tend to rise the closer to the coastline you are, the Costa Blanca still has plenty of budget-friendly options. If you are interested in purchasing a new-build property, then base your search in Valencia city, Alicante city or Costa Blanca hotspots like Benidorm, Orihuela and Calpe.

If you’re looking for a luxury property, Valencia has a great choice. You could buy a penthouse on the waterfront, a family villa with a private pool and garden, or even a mini hotel.

Steps to buy property in Valencia

• Search online:  Determine what you can buy for your budget, as well as a list of features you would like in a home (close proximity to the beach or golf, mountain or sea views).  You may want to narrow down your search to specific areas (the Costa Blanca, Alicante, Gandía…).
• Form a team of experts. Once you have chosen a handful of properties that tick your boxes, reach out to an estate agent. They will be able to talk through the area and what you are looking for in a home in greater detail. Fortunately, as Valencia is so popular with oversea buyers, your estate agent is bound to have plenty of expertise. You will also need an English-speaking lawyer to ensure that the purchase is legally secure. Plus, a currency specialist like Smart Currency Exchange can help you to transfer your budget over to Valencia. You may also want to connect with a financial advisor and a mortgage specialist.
• Book a viewing trip. Once you have your team in place, head out to Valencia to see your pick of properties. If you haven’t narrowed down to a specific town, check the journey times between each home, this is a vast region! If you find a home that ticks your boxes, then reconnect with your professional team and make an offer.
• Once you have made an offer: If the seller accepts your offer, you will sign a reservation contract and pay a fee to take it off the market. While surveys are not the norm in Spain, many international buyers prefer to have one, so you will easily be able to find an experienced professional in Valencia to complete one. Then, you will sign and pay the deposit, around 10% of the purchase price. As you’ve now committed to buying your dream Valencia home, lock in your exchange rate to ensure that you do not lose out on thousands. Meanwhile, your lawyer will contact the notary to ensure the legality of the sale.
• Hold the keys in your hand: You will need to sign the sale contract, escritura pública at the notary’s office. Finally, pay the balance of the purchase price, minus the deposit you have paid. You must also pay the relevant taxes (ITP), stamp duty, notary fees and legal fees.