€190K to €370K: Property prices in Spain's Valencia double in six years

The average price of new housing in Valencia has practically doubled since 2019, new research from the Housing Observatory at Universitat Politècnica de València has revealed.

Buying a house now costs twice as much as it did six years ago, with prices nearing €4,000 per m/2 and even higher in some areas of the city.

Whereas in 2019 a 100 square-metre home cost on average €190,000 in Valencia city's metropolitan area, now you can expect to pay €370,000.

The latest report of the UPV Housing Observatory shows that the average price of new build homes in the Mediterranean city now exceeds €3,700/m2 on average, while it reaches €3,437/m2 in municipalities of l'Horta nord, €2,981 in areas to the west of the city, and €2,521 in the south.

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The most expensive areas, according to the study, are Ciutat Vella and Poblats Marítims, which are already at €5,700/m2 on average.

These values are all at least twice as high as in 2019, demonstrating the speed with which the Valencian property market has surged in the post-pandemic period.

The report also notes that these price rises come as the effective supply of new construction has fallen by more than 80 percent in six years. According to local media, "eight districts of the city have no active developments and the few that do exist are aimed at high-income buyers or international investors."

In recent years, Valencia has become an incredibly popular destination with wealthy foreigners and high-earning digital nomads who have priced locals out of both the rental and property markets.

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Average wages in the city have barely grown by 10 percent in the same period since 2019. Today, the average purchase exceeds 45 percent of the net income of a typical household in the city.

The affordability threshold recommended by the European Union is 30 percent.

"The market is statistically visible, but socially invisible," explains Fernando Cos-Gayón, director of the UPV Housing Observatory. "Working families are the big absentees in the new real estate cycle."

Rental prices in Valencia have risen by 17.1 percent in the last year, the highest in Spain, putting even more pressure on the market and pushing out middle and low-income families.

In view of the rapidly rising property prices, Cos-Gayón stresses that the metropolitan expansion of Valencia "is not a preferred option, but a forced necessity", something as urban planning experts have been calling for for some time.

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