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We present a new direct investment opportunity in residential property in the metropolitan area of Valencia: the Xirivella property, located at Calle José Barea 3. This is an asset with strong profitability potential – both from rental income and capital appreciation – situated in one of the fastest-growing areas of the region.
The total estimated investment starts from €194,490, with a purchase price of €150,000 and an expected net yield of 5.4%. Additionally, thanks to a conservative renovation and financing structure, the project can achieve an estimated IRR of over 17.9% and a projected capital gain of more than €58,000 over five years (in a leveraged scenario for individuals).
A Bright and Exterior Apartment
The property is located on the fourth floor with elevator and offers 74 m² of built area, distributed as follows: three bedrooms; living-dining room with terrace; independent kitchen; and one bathroom.
This type of property is highly demanded in the area, both by families and young professionals seeking functional housing well connected to Valencia.
The asset requires a light renovation, but no structural changes are needed, keeping costs under control and reducing timelines. In fact, the budget included in this operation is the most conservative, offering a cautious starting scenario with potential for optimization.
Two Investment Strategies
As is often the case with our second-hand projects, this property allows for two valid strategies, depending on the investor profile:
- Hold the asset for rental income: The area has a structural shortage of supply and very high demand – especially for three-bedroom apartments – so we anticipate stable and fast rentals, with a recommended monthly income of €970 and an estimated net yield of 5.4%.
- Capture medium-term capital gains: Once renovated and rented for a few years, the property can be sold to take advantage of market appreciation, the purchase discount, value increase after renovation, and rental income generated during the period. In this scenario, we estimate an IRR above 17.9% and a projected capital gain of over €58,000 in five years.
Both strategies benefit from a growing environment and strong demand, providing visibility and stability to the project.
Xirivella Grows Over 20%
Xirivella is one of the most dynamic municipalities in the metropolitan area of Valencia, with 31,803 inhabitants in 2024 and sustained demographic growth reflecting its residential appeal.
In fact, the local market shows particularly strong figures: +26% YoY in sales, +21% YoY in rentals. These numbers indicate a tight market, where demand far exceeds available supply, especially for spacious apartments with terraces.
Location is one of its greatest assets. The property is situated in an area with excellent connections:
- 9 minutes on foot from Xirivella-Alqueries station
- 15 minutes to Valencia city center
- Nearby MetroValencia and bus stops
- Immediate access to V-30 and A-3
This makes Xirivella a highly competitive option for those working or studying in the capital but seeking more spacious and affordable housing.
Why Invest in This Property?
In our opinion, the main highlights of the Xirivella property are:
- High estimated rental yield (5.4%)
- IRR above 17.9% in a leveraged scenario
- Bright exterior apartment with terrace
- Light renovation with clear appreciation potential
- Area with 26% growth in sales and 21% in rentals
- Strategic location minutes from Valencia
- Market with high demand and limited supply
- Train station 9 minutes on foot
- Proximity to key business hubs
Overall, the Xirivella property offers a rare combination: attractive price, high rental demand, and capital appreciation potential above the market. A very complete opportunity to build medium-term value.
