Valencia is nowadays considered one of the best places to buy in Spain and accordingly, it is no surprise that demand for property in the Valencia region has been increasing steadily over recent years.
This could be a reflection of the increasing interest in the Valencia region's Capital City as offering the perfect balance - all the typical city conveniences but without the crush and claustrophobia experienced by those buying property in Barcelona or Madrid.
That said, relocating abroad is a complex undertaking, so it is always wise to be aware of issues that might arise. Below, you will find an overview of the most important considerations you should make, as well as some information on the most popular areas.
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1. Understanding the Property Market in Valencia
With its rich culture, beautiful beaches, and vibrant city life, Valencia, is an attractive destination for those interested in relocating to Spain. it's no wonder the property market is bustling! Before diving into a property purchase, it's essential to understand the nuances of buying a house in Valencia.
According to the property valuators Tinsa, the property market in the main districts of Valencia in late 2023 was as follows:
| Districts | Euros/m2 | Annual Variation (%) |
|---|---|---|
| Ciutat Vella | 2837 | 9.5 |
| L'Eixample | 2672 | 10.2 |
| Extramurs | 2081 | 7.3 |
| Campanar | 2242 | 14.2 |
| La Saidia | 1620 | 8.8 |
| El Pla del Real | 2345 | 6.6 |
| L'Olivereta | 1382 | 8.1 |
| Patraix | 1608 | 9.7 |
| Jesus | 1530 | 20.1 |
| Quatre Carreres | 1929 | 12.2 |
| Poblats Maritims | 1774 | 12.4 |
| Camins al Grau | 1870 | 5.7 |
| Algiros | 1920 | 11 |
| Benimaclet | 1792 | 10.1 |
| Rascanya | 1339 | -1.6 |
| Benicalap | 1672 | 14.6 |
| Poblats del Nord | 1296 | -3.7 |
| Poblats de l'Oest | 1164 | 2.7 |
| Poblats del Sud | 1403 | 4.7 |
2. The Legal Landscape of Buying Property in Valencia
When buying property in Valencia, there are several legal aspects to consider:
- Hire a Lawyer: Engaging a local lawyer experienced in Valencia property transactions is crucial. They can navigate the complex legal landscape and ensure all documentation is accurate and complete.
- Property Registration: Ensure the property is registered correctly with the Land Registry. This step is vital to confirm ownership and identify any existing charges or debts on the property.
- Contract Terms: Pay close attention to the terms of the sale contract. It should outline the sale price, payment terms, and any conditions precedent to the sale.
- Buying a house in Spain is complex and requires undivided attention to details to avoid potential problems.
3. Commercial Tips for a Smooth Purchase
Just as with any major investment, the commercial aspects of a property purchase can be challenging. Here are some tips to make the process smoother:
- Negotiate Wisely: Valencia property prices can be negotiable. Don't hesitate to negotiate with sellers to get the best deal.
- Understand the Market: The property market in Valencia varies by neighborhood. Research different areas to find the best location that fits your lifestyle and budget.
- Check for Hidden Costs: Be aware of additional costs such as taxes, notary fees, and registration fees. These can add up, so factor them into your budget.
4. Finding the Right Property in Valencia
Valencia offers a diverse range of properties, from modern apartments in Valencia City to traditional villas in the suburbs. Here’s what you should consider:
- Location: Whether you prefer the hustle and bustle of city life or a quiet suburban area, Valencia has something to offer. Popular locations include the city center, beachfront properties, and charming villages.
- Property Type: Decide whether you want an apartment, villa, or townhouse. Each type has its advantages, so choose one that suits your needs and budget.
- Future Developments: Consider the potential for future developments in the area. New constructions can increase property value but also bring noise and traffic.
5. The Role of Real Estate Agents
A reliable real estate agent can be invaluable. They can provide insights into the Valencia property market and help you find properties that meet your criteria. When choosing an agent:
- Experience Matters: Look for agents with extensive experience in the Valencia market.
- Local Knowledge: An agent with local knowledge can offer insider tips on the best neighborhoods and properties.
- Client Reviews: Check reviews and testimonials from previous clients to gauge the agent's reputation and reliability.
6. Tips for International Buyers
If you are an international buyer, there are additional considerations:
- Currency Exchange: Keep an eye on currency exchange rates. A favorable rate can save you a significant amount of money.
- Mortgage Options: Explore mortgage options available to non-residents. Some Spanish banks offer attractive mortgage deals to foreign buyers.
- Residency Status: Understand the residency requirements if you plan to stay in Spain long-term. Buying property can sometimes aid in obtaining residency in Spain.
7. The Five Most Interesting Areas for Foreigners to Live in Valencia
Of course, all such lists must be subjective by nature, but in any case, Valencia is a city of diverse neighbourhoods, each with its own unique charm and appeal. Here are five areas that I consider particularly attractive for foreigners looking to buy property in Valencia:
1. Ruzafa (L'Eixample)
Ruzafa is the trendy neighborhood of Valencia, blending tradition and modernity. It is well known for its vibrant social and cultural life, Ruzafa attracts families, tourists, and students. The area is packed with restaurants like Canalla Bistro and Nozomi, nightclubs, and pubs. While rental prices are high, the proximity to the city center and excellent public transport connections make it a desirable location.
As of Q1 2024, the average price per square metre in Ruzafa stands at €2,809. This marks a steady rise, reflecting the area's growing popularity among young professionals and expatriates. The year-on-year change shows a robust increase of 10.1%, indicating a strong demand for properties in this district.
Local Points of Interest:
- Mercado de Ruzafa
- Numerous cafes and boutique shops
- Proximity to the city center
Ruzafa Pros & Cons
- Vibrant Social and Cultural Life: Ruzafa is known for its lively social scene, mixing tradition with modernity. It’s a popular spot for families, tourists, and students.
- Diverse Dining Options: The area boasts a wide variety of restaurants, including famous ones like Canalla Bistro and Nozomi.
- Nightlife: There are many nightclubs, pubs, and bars, making it a hotspot for nightlife enthusiasts.
- Proximity to City Centre: Ruzafa is close to the city center, enhancing its attractiveness.
- Public Transport: Excellent connections via public transport make commuting easy.
- High Rental Prices: The cost of living in Ruzafa is among the highest in Valencia due to its popularity and location.
- Noisy Environment: The vibrant nightlife can lead to noise, which might not be suitable for those seeking a quieter living environment.
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2. El Carmen
El Carmen is ideal for those who love a youthful and alternative atmosphere. It’s famous for its bustling nightlife, cultural activities, and historic charm. This neighborhood is filled with bars, galleries, and cultural spaces, making it a favorite among artists and students. However, be prepared for lively nights as it’s part of the historic center and known for its vibrant night scene.
The average price per square metre in this district is around €2,216 as of Q1 2024. This area, has a healthy year-on-year growth rate of 9.1%.
Local Points of Interest
- Torres de Serranos and Torres de Quart
- Numerous bars and cultural venues
- Historic cobblestone streets
El Carmen Pros & Cons
- Youthful and Alternative Atmosphere: El Carmen has a young and alternative vibe, with a mix of students, artists, and bohemians.
- Rich Cultural Life: The area is full of bars, cultural venues, and a lively night scene, making it ideal for those who enjoy an active social life.
- Historic Charm: As part of the historic center, it features beautiful old buildings and cobblestone streets.
- Noisy Nights: Due to its active nightlife and central location, El Carmen can be quite noisy, especially at night.
3. Patraix
Patraix is considered one of the best neighborhoods in Valencia, particularly valued for its family-friendly environment. It's close to the city center and offers many amenities, including supermarkets, a major hospital, schools, and parks. The mix of cultures adds to the neighborhood's charm, with a variety of restaurants offering international cuisine.
As of Q1 2024, the average price per square meter in Patraix reached approximately €1,654. This area has become increasingly attractive due to its family-friendly environment and local amenities. The most recent data shows a slight uptick in prices, with a year-on-year growth of 5.9%
Local Points of Interest
- Bulevar Sur for outdoor activities
- Diverse dining options
- Excellent community facilities
Patraix Pros & Cons
- Family-Friendly: Patraix is highly valued for its family-friendly environment, with many amenities like supermarkets, schools, parks, and a hospital.
- Cultural Diversity: The neighborhood offers a mix of cultures, reflected in its variety of international restaurants.
- Close to City Center: Its proximity to the city center makes it convenient for commuting.
- Limited Nightlife: Compared to areas like Ruzafa or El Carmen, Patraix might seem quieter and less exciting for those seeking vibrant nightlife.
4. Penya-roja (Camins al Grau)
Penya-roja is notable for its proximity to the City of Arts and Sciences and the old Turia riverbed, now a lush park. Over the past two decades, this area has seen significant development, with new shopping centers like Aqua and El Saler and numerous dining and leisure options. Future connections with the Parque de Desembocadura will further enhance its appeal.
The average price per square metre in this district is about €2,039 as of Q1 2024. Over the past few years, Penya-roja has benefited from continued urban development, with a year-on-year increase of 9.9%
Local Points of Interest
- City of Arts and Sciences
- Turia Gardens
- Modern shopping centers
Camins al Grau Pros & Cons
- Proximity to Attractions: Close to the City of Arts and Sciences and the Turia Gardens, making it ideal for those who enjoy cultural and recreational activities.
- Modern Amenities: The area has seen significant development, with modern shopping centers like Aqua and El Saler.
- Future Developments: Planned future connections with Parque de Desembocadura will enhance its appeal.
- Growing Popularity: As the area continues to develop, it may face issues like increased traffic and higher property prices.
5. Pla del Real
Pla del Real offers an ideal location with all necessary services, near the expansive Jardín del Turia. This area is perfect for those looking to live close to the university and enjoy a vibrant social scene. It also houses Valencia CF’s stadium, adding excitement during football matches.
The average price per square metre in Pla del Real is €2,514 in Q1 2024. This area has seen a stable increase in prices over the past few years, with recent data showing continued growth of 5.1% year-on-year.
Local Points of Interest
- Jardín del Turia
- Valencia CF’s Mestalla Stadium
- Variety of bars and restaurants
Pla del Real Pros & Cons
- Excellent Location: Situated near Jardín del Turia, offering green spaces and recreational areas.
- Good for Students: Close to the university area, making it convenient for students.
- Sports and Leisure: Home to Valencia CF’s Mestalla Stadium, adding excitement during football matches.
- Comprehensive Services: Offers all necessary services, including bars, restaurants, and cinemas.
- Football Crowds: The presence of the stadium can lead to heavy traffic and noise on match days.
8. Legal considerations when buying a house in Valencia
- You can apply for your NIE (Foreign identification number), which is the number granted by the Spanish authorities necessary to carry out any economic transaction in Spain.
- You can open a Spanish bank account, since you will also need it at the time of purchase, so it is better to start the process as soon as possible. Furthermore, you may need some documents to open a bank account in Spain to demonstrate your income like payslips, tax return, bank statements, etc. because the bank must comply with regulations from the EU regarding money laundering.
- When you find the property that interests you, I recommend that you do not sign any reservation document or anything similar before your lawyer checks the property.
- Once the price of the property has been agreed, the lawyer carries out due-diligence on the property, to ensure that the property has no charges, liens or mortgages and the sellers are able to sell the property and all expenses related to the property have been paid (taxes, utilities, etc.), as well as that the property complies with all the legal requirements. This may take approximately 2/3 days.
- Since the legal status of the property has been verified, you may sign the private deposit contract (arras contract) where the buyer and the seller agree the price of the sale, the expenses of the purchase, deadline to sign the final purchase and also, other conditions of the purchase may be added. It is very important that this contract is clear to both parties because this is the basis of the final purchase.
- Usually, at this time, you will pay anything from 3.000.-euros to 10% of the purchase price to the seller to take the property off the market.
- When everything is prepared, the public deed of sale will be signed before the Notary. On that day, sellers and buyers meet in the Notary’s office and the buyers pay the balance of the price to the seller and the expenses from the purchase, and the seller will give the buyers the keys and also, some documents which states that all the expenses from the property has been paid until that date. A certificate of Energetic Efficiency is mandatory to be issued too.
- Expenses related to the purchase of a house in Valencia: In the Valencian Community (Valencia, Castellón and Alicante) these expenses are as follows (based on a purchase price of 200.000.-euros):
- Purchase taxes (ITP and AJD) 10% of the purchase price = 20.000.-euros
- Notary fees: 500.-euros approx.
- Land Registry fees: 600.-euros approx.
- Lawyer fees 1% of the purchase price: 2.000.-euros plus VAT
- Estate agent´s fees: their commission depends on each case, so I recommend you always ask when you are visiting the property, just in case it is expected that you pay this also. Usually it is from 2% to 4% of the purchase price, plus VAT.
- If you are not planning to relocate to Valencia, your property will be subject to Spanish non-resident property tax.
- The deed of sale has to be registered in the Land Registry once the Taxes of the purchase has been paid. This process could take 2/3 months and after that, you can pick up the original copy of the deeds. I recommend that you keep with you until you wish to sell the property and four years minimum after that, because you may need it for tax purposes.
- Once you are the owner of your home in Spain, there will be a minimum level of expenses relating to the property, which will vary depending on the type of property, location etc-as follows:
- Rates (IBI), to be paid once a year. Also, if you buy a house in the countryside, you may have to pay some additional taxes for rubbish collection.
- A minimum of the utilities (electricity, water, etc.) each month
- property owners' association (if your property is one of many in a building) each quarter
- Non-resident Taxes (IRNR) or, if you become resident in Spain, Income Taxes (IRPF). You pay such taxes once a year.
9. Cost of Living in Valencia
Housing Costs
Valencia offers a variety of housing options, with rental prices varying by neighborhood. In the city center, a one-bedroom apartment typically costs around €800 per month, whereas similar apartments outside the center cost about €600 per month. Shared accommodations can range from €200 to €300 per month. Overall, housing costs in Valencia are relatively affordable compared to other major Spanish cities.
Taxes
Residents of Valencia are subject to various taxes, including income tax, property tax, and value-added tax (VAT). Income tax rates range from 19% to 47% depending on earnings, while property tax is based on the cadastral value of the property. VAT in Spain is generally 21%, with reduced rates for certain goods and services.
Transportation
Valencia boasts a comprehensive public transportation system, including metro, buses, and trains. A single metro ticket costs between €1.50 and €4.80 depending on the zone, with a 10-trip pass available for €8. Monthly passes range from €17.50 to €65.50 for unlimited travel within specified zones. Taxi fares average around €11 for a 10-minute ride, and petrol costs approximately €1.45 per litre.
Cost of Groceries
Grocery prices in Valencia are quite reasonable. Basic items such as milk cost €0.76 per liter, bread €0.94 for 500g, and eggs €1.79 per dozen. Fresh produce like tomatoes and oranges are priced at €1.77 and €1.76 per kilogram, respectively. Eating out is also affordable, with a mid-range restaurant meal averaging €10.
Leisure
Valencia has a vibrant cultural scene and numerous leisure activities. Cineman tickets cost around €9, and football match tickets for Valencia CF start at €20. The city’s renowned nightlife, particularly in areas like El Carmen and Ruzafa, includes a wide array of bars and clubs. Additionally, the cost of gym memberships averages €30 per month, while broadband internet is approximately €35 per month.
Cost of Living Comparison in Spain
| Position | City | % Above National Average | Income (€) | Income Ranking |
|---|---|---|---|---|
| 1 | San Sebastián | 33.44% | €39,023 | 4 |
| 2 | Barcelona | 26.76% | €38,226 | 5 |
| 3 | Madrid | 16.18% | €41,830 | 1 |
| 4 | Palma de Mallorca | 15.73% | €34,522 | 9 |
| 5 | Bilbao | 9.95% | €37,242 | 6 |
| 6 | Granada | 7.89% | €26,373 | 45 |
| 7 | Valencia | 6.25% | €31,208 | 21 |
| 8 | Pamplona | 6.12% | €35,430 | 7 |
| 9 | Santander | 5.66% | €31,545 | 20 |
| 10 | Málaga | 5.04% | €27,084 | 39 |
Wrapping up, being assisted by a specialised English-speaking lawyer when undertaking a property purchase in Valencia is vital and should be seen as an investment to ensure a stress-free process.
10. Frequently Asked Questions
Is Valencia a good place to buy property?
Valencia is a fantastic place to buy property. Known for its sunny climate and vibrant lifestyle, Valencia offers a unique blend of culture, cuisine, and affordability. The city's diverse neighborhoods cater to various preferences, from historic charm to modern amenities. Additionally, Valencia's real estate market presents strong investment opportunities with excellent rental yields and reasonable property prices compared to other Spanish cities.
Is Valencia expensive to buy property?
Valencia is relatively affordable for property buyers compared to other Spanish cities. As of Q1 2024, the median price for apartments in Valencia is €2,070 per square meter, while houses average €1,750 per square metre. This makes Valencia a competitive market, offering good value for money. Property prices have shown a stable increase, indicating a healthy and growing real estate market. Overall, Valencia provides an attractive balance of cost and investment potential, making it a favourable location for property purchases.
How much money do you need to live comfortably in Valencia Spain?
Valencia is relatively affordable for property buyers compared to other Spanish cities. As of Q1 2024, the median price for apartments in Valencia is €2,070 per square meter, while houses average €1,750 per square meter. This makes Valencia a competitive market, offering good value for money. Property prices have shown a stable increase, indicating a healthy and growing real estate market. Overall, Valencia provides an attractive balance of cost and investment potential, making it a favorable location for property purchases.
What are the disadvantages of buying a property in Spain?
Buying property in Valencia, Spain can bring disadvantages. Hidden costs, such as property taxes, registration fees, and legal fees, can quickly add up. The complex legal and bureaucratic processes can be challenging, especially for foreigners. The property market's lack of regulation poses risks, including unclear land boundaries and potential issues with off-plan properties. Additionally, coastal and heritage properties may face strict environmental and renovation restrictions.
