In addition to the main qualities that Valencia has to be chosen as a perfect place of residence due to its climate, gastronomy, natural landscapes and historical corners, there is no doubt that it is also among the most interesting Spanish cities for investing in real estate . First, were the real estate markets of Madrid and Barcelona, and now it is time to invest in Valencia .
Therefore, today we tell you how to invest in real estate in the city of Turia and in which areas of the capital is more profitable to carry out your investment.
1. Choose your exit strategy to invest in Valencia
The first thing to consider when investing in a property is the exit strategy. That is to say, in how much time we want to liquidate our investment: at short , medium or long term . Because depending on the time of the investment will correspond to a type of product, project and area in particular.
We can find the investment in residential assets in two presentations, one where its objective is the sale and its contribution of value a refurbishment and another where its objective is the exploitation of the property . However, it is also possible to buy a real estate asset with the aim of increasing our wealth.
2. Choose the investment project for residential assets
The club of real estate investors s, TheBrickLobby, defines these types of investment as Sale Project, Rental Project and Heritage Project. Here we detail according to the type of investment which zones are more suitable for each type of project..
- Sales Project : Because the end of the property is the purchase, refurbishment and an immediate sale , we can assume that the areas for the acquisition of this asset are virtually any, as long as the city where we buy is at a good time for the purchase of assets. However, we have to consider that the central areas of the city will always be of greater demand for purchase and therefore reduce the risk at the time of sale if you choose your investment product in central neighborhoods of the city of Valencia as Extramurs , Ensanche , Llano del Real and Ciutat Vella.
- Rent Project : The purpose of this type of project is to achieve a monthly return through a lease and a sale of the asset in the medium or long term. In this type of projects it is necessary to consider different ways of exploitation according to their zone:
- Student Rent : This type of rent is considered the best ratio of investment amount / return, because the real estate asset is rented by rooms. In this type of rental the size of the investment will depend on the location of the asset since the furniture and adequacy is the most minimal due to the fact that the tenant has a less demanding profile. The decision of where to invest with this type of exploitation will depend on the university areas and the easy access to public transport. In Valencia, the neighbourhoods of Benimaclet, Ayora, Malvarrosa and Amistad are a good example of investment areas for this type of rental operation. A good tip is to buy a property with as many rooms and bathrooms as possible.
- Residential rental : This type of rental is considered the most comfortable. It is a long term rental either for families, couples or simply people who want to rent a flat. In this type of rental the size of the investment will depend on whether so much refurbishment and adaptation needs the asset to begin to be exploited, if the rental is with furniture and also the area of the residential asset.
Since practically any area of Valencia is rented, the decision of where to invest with this type of exploitation will depend on the amount of the investment and the expected profitability. A good advice is to define what type of tenant we want to have: families, entrepreneurs, young people who become independent … and thus define an area and type of reform.
- Tourist Rental : This type of rental is considered as the highest profitability because Valencia is a city with many tourist opportunity . The size of the investment will depend on the location of the asset (proximity to the beach, old town, public transport …) and the refurbishment and adequacy as your asset must be attractive to the eye to be chosen from among the competition and show a consistency with the rental price. The decision where to invest in Valencia with this type of exploitation will depend on the supply of product in areas of tourist demand and especially on the regulation of tourist housing rental.
In Valencia we find a suspension of licences for tourist apartments in the old town, however neighbourhoods such as El Botànic, Arrancapins or La Petxina are still a good option for renting to tourists who want to enjoy the city of Valencia, and El Cabanyal and La Malvarrosa for renting to tourists who want to enjoy the beaches of the east. A good advice is to buy ground floor or first floor above a commercial premises, it is a requirement to acquire license and an excellent option to find available offer.
- Project of Wealth: The purpose of this type of investment projects is to exploit a property by means of rent for obtaining income and patrimonial increases.
Why investing in real estate in Valencia is a good opportunity?
In recent years, Spain has become a very attractive market for the real estate investments thanks to the sustained growth of the economy. Valencia is currently the province with the highest rental profitability, so our real estate experts point to this city as one of the great alternatives for real estate investment. In addition, the Valencian Community still has a long way to go, so investors can take advantage of high capital gains in the coming years .
If you still have doubts about how to invest in Valencia, you can always look for a Real Estate in Valencia for advice on the possible properties available in each area and thus make the most of your investment.