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Last Updated on 03/12/2024 by STEPHANE
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To provide insight into Valencia’s current property market, we asked our independent local property finder, Geoffroy, to share details about active deals in the region. If you’d like more information, you can contact Geoffroy and his team, our local HowToBuyInSpain partners in Valencia, by filling out our quick contact form.
Valencia Property Investment: A Case Study of Student Housing Investment
In a market where prime student housing locations are increasingly scarce, Valencia continues to shine as one of Spain’s most promising investment destinations. As Spain’s third-largest city and home to over 100,000 students, Valencia offers a unique combination of academic excellence, Mediterranean lifestyle, and strong rental yields that savvy investors can’t ignore. The city’s ongoing urban renewal, particularly in historic districts like Cabanyal, presents an exceptional opportunity for those looking to enter the Spanish real estate market.
The transformation of Cabanyal from a traditional fishing quarter to a vibrant student neighbourhood mirrors successful regeneration stories seen in cities like Barcelona’s El Born or Madrid’s Malasaña. With Valencia’s universities expanding and international student numbers growing strongly yearly, the demand for quality student accommodation has never been more robust. Today, we present an investment opportunity that perfectly capitalizes on these market dynamics. Last but not least, Cabanyal is one of our favourite districts as it is 5 minutes from the beach and 5 minutes from universities.
The city of Valencia
Valencia, Spain’s third-largest city, combines historic charm with modern innovation. Located on the Mediterranean coast, it offers:
- Rich cultural heritage with the historic Old Town (Ciutat Vella)
- Modern attractions like the City of Arts and Sciences
- Miles of beautiful Mediterranean beaches
- The converted riverbed Turia Gardens, one of Europe’s largest urban parks
- A thriving university population with multiple campuses
The Cabanyal District
Our featured property is located in the historic Cabanyal neighbourhood, known for:
- Traditional fishermen’s quarter with unique architecture
- 5-minute walk to Playa de las Arenas beach
- Proximity to main university campuses
- Excellent public transportation connections
- Growing popularity among students and young professionals
The situation of the apartment
Featured Investment Property: Student housing opportunity
- 66m² Living Space
- 7.50% Gross return
- €41,000 Below Market Value
Floor plan of the property
Property Highlights
- Three bedrooms (2 with private balconies)
- Direct access to shared rooftop terrace
- Built-in 1967
- Third-floor location (one floor under this nice shared rooftop… but as you are just under it, most of the time, no one will use it apart from you 😉 )
- Complete renovation package included
Pictures of the property
Financial Breakdown
- €157,000 property price. In our view, you should negotiate the price lower, but it depends on your willingness to get the deal done/ risk losing the deal.
- €28,000 renovation cost estimation. In our view, this is a bit aggressive, and maybe you should consider a stronger renovation, but why not negotiate harder on the price to compensate?
- €1,400 Estimated monthly rental income
Annual Operating Costs
- Property Tax (IBI): €190
- Home Insurance: €280
- Community Fees: €492
- Total Annual Costs: €962
Rental Strategy
- Two standard rooms at €450/month each
- One premium room at €500/month
- Total Monthly Income: €1,400
Recap of Investment Analysis
As Valencia continues its upward trajectory, opportunities like this become increasingly rare. The location, value, and potential return combination make this Cabanyal property a compelling investment case. While the €41,000 below-market price point provides immediate equity, the real value lies in the property’s strategic position within Valencia’s growing student housing market.
The comprehensive support offered by Geoffroy and his team, from renovation to rental management, ensures investors can confidently enter this market with professional guidance at every step. With Valencia’s student population expected to grow over the next five years and the city’s profile rising internationally, the timing for this investment opportunity couldn’t be better.
This property offers immediate returns and strong potential for capital appreciation for investors seeking to build a resilient portfolio in Spain’s dynamic student housing market. The combination of historic charm, modern amenities, and proximity to the beach and campus creates an irresistible proposition for the growing student rental market.
Contact us today to learn more about this unique investment opportunity and to schedule a viewing. With our team at HowtobuyinSpain and our local partner Geoffroy, we are ready to guide you through every step of your investment journey in Valencia.
Here are all the financial details summary
Disclaimer: All returns are projections based on current market conditions. Property investment carries inherent risks, including potential changes in market conditions, rental rates, and regulatory environment. Investors should conduct their due diligence and consider their circumstances before making investment decisions.
About Geoffroy, our local property hunter
Geoffroy is our local property finder in Valencia and the Costa de Valencia.
He specializes in:
- Property sourcing and acquisition
- Renovation project management
- Rental management services
- Investment strategy and analysis
Are you looking for a property hunter, a lawyer, an architect, or a local expert in Spain? Ask our network of independent local experts directly!
Check the entire team of HTBIS or check our independent local partners
Are you looking for a property hunter, a lawyer, an architect, or a local expert in Spain? Ask our network of independent local experts directly!
