Is Investing One Million Zloty in Real Estate Worth It? A Look at the Valencia Market
You finish your studies, begin your career, specialize in your field—and before you know it, you’re a sought-after expert. Your experience across various roles begins to pay off, both professionally and financially. Eventually, you find yourself with significant savings.
But then comes a harsh realization: inflation is slowly eating away at your money. Even when inflation hovers at the target range of 2–3% annually—as most governments aim for—it still results in substantial losses over time. With a million złoty in the bank, you could be losing between 20,000 and 30,000 PLN per year without even noticing.
Why Real Estate? Why Now?
Real estate offers a reliable way to protect and grow capital. A million złoty is a solid base to enter this market. You can invest locally, but diversifying geographically is often smarter. Different regions react differently to economic shifts, offering a layer of protection for your assets.
One market worth serious consideration is Valencia, Spain. Not only does it offer stable rental yields and long-term value growth, but it also presents favorable economic and demographic dynamics that support sustained demand.
Why Valencia? Four Key Reasons
- Major Urban Center with Room to Grow
Valencia is Spain’s third-largest city, home to nearly a million people. Despite this, real estate prices remain significantly lower than in Madrid and Barcelona. As of June 2025, the average cost per square meter in Valencia is €2,300—compared to €4,000 in Barcelona and €4,400 in Madrid. This gap suggests strong potential for appreciation, as Valencia “catches up” to its larger counterparts. - Strong Regional Identity & Retention of Talent
The autonomous status of the Valencian region fosters a strong local identity. Unlike in cities like Murcia, where young professionals often leave for Madrid, Valencia retains much of its educated workforce. This creates long-term residential stability and helps fuel the local economy. - Booming Economy & Job Market
The region is experiencing a surge in investment and job creation. In March 2026, the world’s largest battery factory, built by the Volkswagen Group, is set to open in nearby Sagunto (just 25 km from Valencia). It will create 1,600 jobs immediately and up to 3,200 in the following year—plus 12,000 additional roles through subcontractors.Meanwhile, in Moncada—a town connected to Valencia by metro—a new heart valve manufacturing facility will employ another 1,600 people. These are just a few examples of the rapid industrial growth driving housing demand. - Attractive Rental Returns and Market Fundamentals
Assuming an average property value increase of 6–8% annually, your capital could grow at a pace significantly outpacing inflation. For example, a 9% rise in value could yield around €90,000 per year—around €7,500 per month—excluding rental income.Even conservative estimates of net rental returns (after inflation, maintenance, and management fees) suggest a realistic 2% yield. That translates to about €3,500 in passive monthly income, without any day-to-day involvement from the owner.
The Bottom Line
If you entrust your property to professionals and take a hands-off approach, your returns—including capital appreciation and rental income—could exceed €11,500 per month above inflation. That’s a significant gain, especially considering it requires no compromise on your career or lifestyle.
In a time of economic uncertainty, investing in a stable, growing, and internationally attractive market like Valencia is not just wise—it’s strategic.