Not only has the average rental price in Valencia increased dramatically, but prices in the Province are gradually closing the price gap with the capital.
Valencia’s real estate market has undergone seismic shifts in recent years, with prices continuing to rise. The expected cooling as a result of rising interest rates and bank defaults in the US and Europe has yet to affect the market – sales are down slightly, but prices are not.
The government’s intention to implement its new Housing Law, which includes rental price caps, has created a new incentive for rental prices to rise, and Valencia flats are about 20% more expensive this year than at the same time last year. Here is a small breakdown of current rental prices in Valencia and Valencia province, according to Idealista.
After years of chasing the posh Eixample district, Ciutat Vella has become Valencia’s most expensive area to rent property. The average price in Valencia’s historic district is €14.6 per square metre, which is 21.9% higher than the same period last year. The most expensive area in Ciutat Vella is, as expected, La Seu, the city’s heart, with an average price of €15.8 per square metre, a 16.1% increase year on year.
What’s different this year is that the El Carme barrio experienced the highest price increase, 26.3% year on year, with prices now standing at €15.3 per square metre. La Xerea, a very exclusive area, is the cheapest part of the old town, with rents around €12.9 per square metre, while businesslike San Francesc rents for €14 per square metre. El Carme and La Seu are both at historical heights.
While Eixample remains the most expensive district in Valencia for property purchases, it is no longer the most expensive for rentals. This means that if you want to buy a property as an investment, Ciutat Vella is a better choice than Eixample.
Pla del Remei remains the most expensive neighbourhood in Eixample, with average rental price of €14,1 per square metre, while Gran Via is slightly cheaper at €13,7 per square metre. Ruzafa is still the most affordable neighbourhood in Eixample, with an average rental price of €12.8 per square metre.
The rest of Valencia’s barrios range between €10 and €12 per square metre, with Olivereta (€9,7) and Jesus (€9.6) on the lower end of the scale. Patraix is the cheapest barrio in Valencia right now, with an average rental price of €9.5. Despite appearing to be inexpensive on the surface, Patraix’s prices have risen by a whopping 20% year on year.
If you think that Valencia is too expensive, you can always move outside of the city and look at some of the offers in Valencia Province. While the price disparity was once quite large, it is rapidly closing. The current average rental price in Valencia is €11,5, compared to €9.8 in the Province. Some villages near Valencia saw significant increases in the last year, including Godella (34.6%), Alzira (28%), and Burjassot (26%).
However, there are still many affordable places to live, with average rental prices much lower than in Valencia. Ontinyent costs about €5,0 per square metre, and other good options include Xativa (€5,4), Alzira (€5,6), and Gandia (€6,6). Catarroja, where the average rental price is €6,8 per square metre, may be a good option for people who want to be closer to Valencia.
These are the most recent Idealista price statistics, and they reflect asking prices. However, whereas in the case of property purchases, there may be some difference between the asking and selling prices (due to negotiations), in the rental market, negotiations are a thing of the past. Valencia does not have enough rental properties, which is reflected not only in the prices but also in the rate at which any decent properties disappear from the Idealista pages.
This article is brought to you by Expat Hub Valencia, a property buying agent in Valencia. Using the Expat Hub’s services, you will be able to successfully navigate Valencia’s complicated property market in no time.