Investment Property in Valencia

Investment Real Estate in Valencia

Investment Property in Valencia
Investment Property in Valencia

Valencia property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Valencia .

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Search Map of Valencia Investment Real Estate

Valencia (Spanish: [baˈlenθja]), officially València (Valencian: [baˈlensia] (locally) or [vaˈlensia]), is the capital of the autonomous community of Valencia and the third-largest city in Spain after Madrid and Barcelona, surpassing 800,000 inhabitants in the municipality. The wider urban area also comprising the neighbouring municipalities has a population of around 1.6 million. Valencia is Spain’s third-largest metropolitan area, with a population ranging from 1.7 to 2.5 million depending on how the metropolitan area is defined. The Port of Valencia is the 5th-busiest container port in Europe and the busiest container port on the Mediterranean Sea. The city is ranked as a Gamma-level global city by the Globalization and World Cities Research Network.

Valencia was founded as a Roman colony by the consul Decimus Junius Brutus Callaicus in 138 BC and called Valentia Edetanorum. In 714, Moroccan and Arab Moors occupied the city, introducing their language, religion and customs; they implemented improved irrigation systems and the cultivation of new crops as well. Valencia was the capital of the Taifa of Valencia. In 1238 the Christian king James I of Aragon conquered the city and divided the land among the nobles who helped him conquer it, as witnessed in the Llibre del Repartiment. He also created the new Kingdom of Valencia, which had its own laws (Furs), with Valencia as its main city and capital. In the 18th century Philip V of Spain abolished the privileges as punishment to the kingdom of Valencia for aligning with the Habsburg side in the War of the Spanish Succession. Valencia was the capital of Spain when Joseph Bonaparte moved the Court there in the summer of 1812. It also served as the capital between 1936 and 1937, during the Second Spanish Republic.

The city is situated on the banks of the Turia, on the east coast of the Iberian Peninsula, fronting the Gulf of Valencia on the Mediterranean Sea. Its historic centre is one of the largest in Spain, with approximately 169 ha (420 acres).[improper synthesis?]
Due to its long history, Valencia has numerous celebrations and traditions, such as the Fallas, which were declared Fiestas of National Tourist Interest of Spain in 1965 and an Intangible cultural heritage by UNESCO in November 2016. Joan Ribó from Compromís has been the mayor of the city since 2015.

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The financial stability of Valencia has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Valencia

Renting out your Valencia buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Valencia are – preparation is key.

  • Set goals based on how much rental yield will be required and the local rental yield rates in Valencia and be prepared to change your initial outlook.
  • Thoroughly research the Valencia location with a special emphasis on fringe areas outside the main Valencia metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Valencia.
  • Ensure that your target investment property in Valencia appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
  • You may think that managing your Valencia properties yourself is an easy option, but are these savings justifiable when you run into Valencia red tape? Physis Realty Valencia office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Valencia buy-to-rent sector.

With our expert guidance, investing in Valencia provides the secure knowledge that your money is working harder than it would in a local Valencia bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Valencia, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Valencia property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Valencia

Flipping property in Valencia

Flipping property is when we advise clients to buy a Valencia property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Valencia market has a time to react to the renovation.

The Flipping Strategy in Valencia

Investment property flipping in Valencia is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Valencia real estate investments are sometimes referred to by professionals as ‘distressed’ Valencia real estate.

What is distressed Valencia property:

  • Valencia property in need of renovation
  • Valencia real estate with a change of purpose and use
  • Oversold Valencia property
  • Bank repossessions in Valencia

Put simply, long term investors in Valencia purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Valencia investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Valencia property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Valencia use a minimum profit value of 22% when looking at potential Valencia projects. The reason for this is because there are lots that can go wrong in Valencia property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Valencia

For luxury property investors hoping to add a superb property in Valencia to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Valencia, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Valencia should be entrusted to only the highest-quality agency.

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