Valencian Comunity: A solid and attractive market for real estate investment
The Valencia region has proven to be a solid and attractive market for real estate investment, thanks to its economic growth, excellent climate, and quality of life. With steady demand in key sectors and a favorable environment, it is a market that offers interesting returns for investors. Specifically, when it comes to buying property for rental purposes, it is the region where the investment is recovered the fastest, with an average of 12.6 years.
Moreover, the region’s share of the total volume of investment in Spain has grown in recent years. This increase is reflected in data from the first three months of 2024, when the region captured 10% of the national total of real estate investments, totaling 221 million euros, according to data from CBRE. This significant growth positions the Valencia region as the third destination for real estate capital in Spain, along with the Canary Islands, which also accounts for 10% of the investment and shares the spot. The top two places are held by Madrid and Barcelona, with 49% of the total investment.
The rise in investment in the region is partly due to the price surge in traditional markets like Madrid and Barcelona, as noted by José Ángel Sospedra, senior director for Eastern Spain at CBRE, in an interview with Valencia Plaza. These markets have reached very high price levels, prompting investors to seek more profitable alternatives with greater growth potential. Cities like Valencia and Alicante have emerged as attractive options due to their economic growth, improved infrastructure, and increased demand for residential and commercial spaces. This aligns with investors’ preference for more affordable markets where they can achieve solid returns and diversify their portfolios in emerging sectors such as coliving and flex living.
Key sectors: Living, logistics, retail, and hospitality
BNP Paribas Real Estate points in the same direction, stating that “Valencia is in the spotlight for all investors,” as emphasized by Francisco López, director of the consulting firm in Valencia. Areas such as logistics are attracting a significant portion of capital, but sectors like living, which encompasses various types of residential assets and new modalities such as coliving and senior living, are also on the rise. For example, Grupo Gimeno has decided to invest 100 million euros in several senior living projects along the Mediterranean coast by 2026, in response to the growing demand for housing options tailored to seniors’ needs. The group has identified the Valencia region as the most sought-after by foreign individuals looking for alternatives to traditional housing to enjoy a new stage in their lives.
Additionally, the strategic position of the Valencia region along the Mediterranean corridor, combined with the presence of the Port of Valencia, one of Spain’s most important ports, has made this area a reference point for logistics activities, as noted by Javier Muñoz, Industrial & Logistics Director for Eastern Spain at CBRE, in this interview with Las Provincias. This development has been fueled by the rising demand for industrial and logistics spaces, particularly due to the growth of e-commerce. As companies seek to optimize their operations, the region is becoming a preferred destination for establishing distribution centers, which in turn has generated considerable demand for industrial warehouses and storage facilities in the area.
The retail sector has also historically been one of the strongest in the region. In Valencia, the turnover of operators and the constant arrival of new brands reflect the dynamism of this sector, as highlighted by CBRE. The construction of the Infinity shopping center, with a 350-million-euro investment, is a good example. The center is set to open in 2026 and is expected to generate thousands of jobs in the region, boosting the local economy.
Tourism is also a key economic driver in the Valencia region, continuing to attract numerous tourists and recording high hotel investment, consolidating itself as one of the top hotel investment destinations in 2023, with a volume of 197 million euros. The province of Alicante, and particularly the Costa Blanca, stands out for its growing interest among investors, especially due to its good climate, international connections, and room for new hotel developments. Notable projects are underway, such as the Gran Delfin in Benidorm, and international hotel chains have launched expansion plans in the region.
Success of real estate crowdfunding in the Valencia region
At Urbanitae, we have also contributed to boosting investment in the Valencia region through our participatory financing platform. We have successfully participated in numerous projects, primarily located in Alicante and Valencia. Developers such as Viviz, Libra Gestión de Proyectos, Conforthogar, White Investing, Inmobiliaria Espacio, and Quadratia have carried out significant real estate crowdfunding operations with us, involving small and medium-sized investors.