Valencian community goldmine: Real estate investment yields top returns

Valencian community goldmine: Real estate investment yields top returns.

Valencian community goldmine: Real estate investment yields top returns. Image: Loes Kieboom / Shutterstock.com.

The Valencian Community stands out as the most profitable region in Spain for buying and renting housing.

According to a study by Fotocasa titled ‘The Profitability of Housing in Spain’, the profitability of housing at the end of 2023 was 6.4 per cent, just slightly below the previous year.

Sharper Increase

This minor dip is attributed to a sharper increase in purchase prices compared to rental prices.

Despite this, investment returns from housing nearly double those offered by other financial products, such as Treasury bills or large bank deposits.

In 2023, the rental prices in the Valencian Community increased more significantly than purchase prices.

Data from the Idealista Price Index shows that from December 2022 to December 2023, the purchase price in the Valencian Community rose by 11.27 per cent, from 1,596 euros per m² to 1,776 euros per m².

Rental Prices

Meanwhile, rental prices surged by 13.75 per cent, from 8.8 euros per m² in December 2022 to 10.01 euros per m² in December 2023.

This trend highlights the Valencian Community as an attractive area for real estate investment, with higher returns on both purchase and rental properties compared to other financial products.

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Written by

Anna Ellis

Originally from Derbyshire, Anna has lived in the middle of nowhere on the Costa Blanca for 19 years. She is passionate about her animal family including four dogs and four horses, musicals and cooking.

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