Investing in Valencia: Lessons from Personal Experience

You’ve made the decision — you’re buying an investment property in Valencia to rent out.

Every decision solves some problems but opens the door to new ones, and buying real estate is no exception. How you approach your purchase depends on your budget, which defines the size, standard, and location of the property. These factors will also influence your tenant profile and expected returns.

Why Small Apartments Don’t Always Work in Valencia

In Poland, I typically invested in compact apartments, between 23–29 m², which proved to be ideal in terms of affordability, rentability, and liquidity.

However, Valencia presented a different reality:

• Small apartments are rare, partly due to Spanish building regulations and historically low real estate prices.
• The target rental demographic is different. In Valencia, tenants aren’t just young professionals or students. Instead, there’s a growing population of wealthy expats—people relocating not for work, but for quality of life.

This demographic includes large Dutch, American, and international communities, many of whom work remotely or live off foreign income and assets. They choose Valencia for its sun, lifestyle, and affordability—not out of necessity, but as a deliberate, aspirational move.

What These Tenants Are Looking For

• High-standard apartments with good design and comfort
• 75–90 m² properties
• Outdoor spaces (terraces, balconies)
• Excellent location and public transportation access

Interestingly, many Americans do not drive in Spain due to license restrictions, especially older expats. This means walkability and metro access are essential.

Houses: Worth It for Rentals?

Buying a house for rental purposes can work, but only under one condition:
➡️ The tenant must take responsibility for maintaining the garden, outdoor space, and pool.
Large plots can be a liability if neglected — they quickly become unattractive and hard to re-rent.

That’s why smaller plots or low-maintenance natural surroundings are a smart choice.

???? Example: El Bosque (“The Forest”)

• Gated community of 1,200 homes near a golf course
• Includes horse stables, tennis courts, gym
• Surrounded by actual forest instead of gardens
• Quiet, car-dependent — yet popular with long-term tenants

Though isolated, its natural setting eliminates outdoor maintenance costs, making it surprisingly rental-friendly.

Industrial Zones & Niche Markets

Peripheral neighborhoods near industrial parks offer another compelling investment niche:

• Strong demand from professionals and technical staff
• Shortage of well-designed, high-standard apartments
• Size is secondary — quality matters most

Student Apartments: Reliable, Diverse Demand

This segment has huge potential and low entry barriers:

• Location near universities is critical
• Standard can be more modest
• Valencia attracts:
  • Budget-conscious domestic students
  • Over 30,000 Erasmus participants annually
  • Affluent students from the US and Scandinavia

???? Schools like the Technical University, Dentistry Faculty, and Music Production School attract diverse student groups with different expectations.

Final Takeaways: Strategy by Budget

• If your budget allows: focus on quality, standard, and location.
  ➤ Think: large apartments in central or highly connected areas for wealthy expats.
• On a modest budget:
  ➤ Suburban industrial zones or student housing are ideal entry points.

Conclusion: Valencia Has All the Ingredients

Valencia continues to attract wealthy newcomers, international professionals, and students from around the world.
It’s a rare mix of livability, investment potential, and long-term growth — and the market shows no sign of slowing down.

Whether you’re entering at the high or mid-end of the market, understanding your tenant and their needs is the foundation of a successful strategy.