Periodic reports on the Valencia property market (Valencia city and province)
This page offers data-driven reports on Valencia city’s property market, consolidating key data from public sources to highlight the latest trends and developments. Illustrated with charts and infographics, these reports provide critical insights into the residential real estate market of Valencia city and province. These reports are written for foreign investors, property buyers, vendors, professionals, and journalists looking for insight into Valencia’s property market to help inform big decisions with important financial consequences.
Valencia property market overview
Valencia is a prime destination for international property buyers looking for second homes, holiday properties, or investment opportunities. Renowned for its Mediterranean coastline, vibrant cultural life, and architectural heritage, the region attracts a significant share of Spain’s foreign property transactions. As one of the most dynamic housing markets in Spain, a focused report on the Valencia property market is invaluable for anyone with an interest in this region.
Located in eastern Spain, Valencia offers a diverse range of housing options, from modern apartments to restored historic homes in its iconic districts. The market presents unique opportunities and challenges worth analysing. Key districts like Extramurs, L’Eixample, and Ciutat Vella are among the most sought-after areas for buyers and investors.
The reports cover a wide range of topics to provide a comprehensive understanding of the market, including:
- Home sales across Valencia city and province.
- Foreign buyers: market share, residency status, and second-home investments.
- New-build properties: sales, pricing trends, and index data.
- House prices: general trends and specific insights into flagship districts like L’Eixample and Ciutat Vella.
- Mortgage lending: base rates, borrowing costs, and their influence on the market.
- Housing starts and key factors affecting supply and demand.
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Valencia City property market reports for previous periods
2025 Full Year
The Valencia housing market in 2025
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2025 H1
Valencia housing market report – H1 2025
This report provides a data-driven overview of the housing market in Valencia province, with a particular focus on Valencia city. Based on official data sources, it covers sales, prices, mortgage lending, and construction activity in the first half of 2025. The aim is to help domestic and international market participants understand recent performance and longer-term trends in one of Spain’s most important urban housing markets.
Sales performance
There were 21,347 home sales in Valencia province during the first half of 2025 (Fig. 1-1), representing a 1% increase year-on-year. Compared to the ten-year average, sales were 26% higher, while over the last decade transaction volumes have risen by 102%, underlining the strong structural expansion of the market.
Foreign buyers accounted for 4,097 purchases, a 5% decline year-on-year. Despite this short-term fall, foreign demand remains elevated, standing 34% above the ten-year average and 142% higher than a decade ago. By residency status (Fig. 1-2):
- 3,330 homes were bought by foreigners living in Spain (expats), down 2% year-on-year
- 767 homes were bought by foreign non-residents (FNRs), down 17% year-on-year
Over ten years, purchases by expats have increased by 155%, while FNR purchases are up 99%, highlighting the long-term importance of international demand, particularly resident foreigners.
The market share of foreign buyers stood at 20% (Fig. 1-3), down from 21% a year earlier and below the highs seen earlier in the decade, reflecting a relative strengthening of domestic demand rather than a collapse in foreign interest.
Sales of new-build homes totalled 1,135 transactions, a 14% decline year-on-year (Fig. 1-4). This was 5% below the ten-year average, though still 7% higher than ten years ago, suggesting a temporary softening after several strong years.
Focusing specifically on Valencia city, there were 4,972 home sales, down 4% year-on-year (Fig. 1-5). Volumes were broadly in line with the ten-year average and 23% higher than a decade ago, confirming steady long-term growth in the capital despite recent cooling.
Prices
According to the Spanish Housing Ministry, the average price of homes sold in Valencia during the period was €159,086 (Fig. 2-1), an annualised increase of 7%. The average price of newly built homes was higher at €195,028, but down 2% year-on-year, pointing to short-term adjustment in the new-build segment.
Over ten years, the price index for all property has risen from 100 to 132, while the index for new homes stands at 129 (Fig. 2-2). This indicates that resale prices have increased slightly more than new-build prices over the decade. One likely explanation is stronger demand for existing homes in central urban areas, where supply is more constrained, while new-build prices have faced greater resistance in recent years due to affordability limits and softer sales.
Over the last five years, prices for all property are up 33%, compared to just 4% for new homes, reinforcing the view that recent price growth has been driven primarily by the resale market.
As illustrated in Fig. 2-3, asking prices in Valencia city have risen sharply. From €1,357 per square metre in 2015 to €3,030 in 2025, this represents a 123% increase over ten years and a 65% rise over five years. The steep acceleration since 2020 reflects strong urban demand, limited supply, and Valencia’s growing appeal as a lifestyle and investment destination.
Mortgage lending
There were 14,081 new mortgages signed in Valencia province in the period (Fig. 3-1), up 24% year-on-year. Lending was 40% above the ten-year average and 137% higher than a decade ago, indicating a robust credit environment supporting transactions.
The average Euribor during the period was 2.27% (Fig. 3-2), down 38% year-on-year. This level sits well below the recent peak of 3.69% in 2023, but far above the historic low of -0.49% in 2021. The decline reflects the European Central Bank’s shift away from aggressive tightening as inflation pressures ease. During H1 2025, markets increasingly anticipated gradual interest rate cuts, which would improve affordability and support mortgage demand.
Housing starts
There were 2,236 housing starts based on planning approvals in Valencia during the period (Fig. 4-1), up 10% year-on-year. This represents a 53% increase compared to the ten-year average and a rise of 328% over the decade, highlighting a strong long-term recovery in development activity, albeit from a low base.
Outlook
The Valencia housing market enters the second half of 2025 in a position of relative strength. Sales volumes remain historically high, price growth in the city continues to outpace national averages, and mortgage lending is recovering as interest rates ease. While foreign buyer activity has softened in the short term, long-term trends remain supportive, particularly among resident foreigners. The key risks to monitor are affordability constraints, the pace of interest rate cuts, and whether the recent increase in housing starts translates into meaningful additions to supply. Overall, market conditions point to continued stability rather than a sharp slowdown.
Disclaimer
These reports are prepared in good faith using publicly available data. While efforts are made to ensure accuracy, no guarantees are provided regarding the completeness, reliability, or suitability of the information for any purpose. Use of this information is at your own risk.
