New Listing! Home in Valencia with an 18% IRR
Last Updated on 6 February 2026 by Equipo Urbanitae
We’re presenting a new Direct Investments opportunity on Pajares (Pallisses), Paterna, one of the most dynamic municipalities in the Valencia metro area. This is a resale home that stands out for its highly competitive entry price, its spacious, liquid (easy-to-exit) layout, and a rental market with strong structural demand.
The property is acquired at an approx. 15% discount versus comparable homes in the area, providing a clear margin of safety and meaningful upside potential from day one.
A spacious, functional asset with strong rental demand
The home is located on the second floor with elevator access, is exterior-facing, and offers a layout that is especially attractive in Paterna’s residential market: four bedrooms, one bathroom, a separate kitchen, and a living room with a balcony. This configuration is in high demand both among families and professionals looking for more space and good connectivity to Valencia.
The required renovation is an update/refresh, with no structural work, which reduces timelines, costs, and risk. This makes it easier to bring the asset up to current market standards and accelerate its time-to-rent.
Stable returns and mid-term appreciation potential
From a financial perspective, the deal offers an estimated 5.3% net rental yield, supported by limited supply in the area and very strong demand for larger homes.
We propose two complementary strategies:
- Hold as a rental, generating stable, recurring income.
- Exit in the mid term, capturing value from the purchase discount and post-renovation improvement.
In the second scenario—using leverage and a sale after five years—our analysis projects an IRR above 18% and an estimated capital gain above €70,000, well above the area’s average.
Key deal metrics
- Purchase price: €170,000
- Estimated total investment: €226,083
- Estimated net yield: 5.3%
- Type: resale home
Asset features
- 111 m² built area
- 4 bedrooms
- 1 bathroom
- Exterior-facing
- 2nd floor with elevator
Why invest in Paterna?
Paterna is one of the most dynamic municipalities in the Valencia metro area. With more than 70,000 residents, it combines established residential neighborhoods with one of the province’s strongest business ecosystems—supporting steady, diversified rental demand.
From a market standpoint, the area is clearly in an expansion phase. Home sale prices have posted +23.8% year-on-year growth, while the rental market remains resilient in a context of limited supply, supporting fast occupancy and high income stability.
Location is another major advantage. Paterna has excellent connections to Valencia via Metrovalencia and multiple bus lines, as well as direct road access. It’s also close to major employment hubs such as Parc Tecnològic, Fuente del Jarro, and Parque Empresarial Tàctica—which together concentrate thousands of workers and create structural pressure on the residential market.
Overall, this transaction combines an entry discount, recurring income potential, and mid-term appreciation upside in a market with solid fundamentals and structural demand—built to generate stable cashflow today and capture value over time.
