According to the latest report prepared by valuation company Euroval, residential rental yields in the Valencian Community range from 7.6% to 10.3% per year depending on the province. The study also confirms that the Valencian Community is among the most dynamic rental markets in Spain, alongside Andalusia, Madrid and Catalonia, where a significant share of activity is concentrated.
Distribution of supply and yields by province
The distribution of supply within the autonomous community shows clear territorial concentration.
- The province of Valencia accounts for 48% of rental listings.
- It is followed by Alicante with 44%.
- Castellón accounts for just 8%.
These three provinces show relatively high yield levels, although with differences mainly driven by the ratio between rental rates and housing prices.
The highest yield – 10.3% – is recorded in the province of Valencia. This is supported by an average annual rent of 16,793 euros (the highest in the autonomous community) and a relatively moderate average housing price of 162,925 euros.
In Alicante, the average rent stands at 14,513 euros per year, while the average housing price reaches 191,119 euros, providing a yield of around 7.6%. In turn, Castellón posts a yield of 8.7%, with rent being proportionally high compared to housing prices.
Yields in the largest cities
- In the capital of the province of Alicante, yield stands at around 7.6%.
- In Elche, it reaches approximately 8%.
- In the city of Valencia, yield falls to 7% – mainly due to higher housing prices in the city.
- By contrast, the city of Torrent shows a yield of 10.1%, in line with the provincial average.
Dispersion of rental rates
The study also analyses the dispersion of rental prices by comparing average and median values. In the province of Alicante, the difference between them amounts to 2,513 euros, meaning that the average yield exceeds the median by 1.3%. In the province of Castellón, the gap is 1,600 euros, with the average yield 1.5% above the median. In the province of Valencia, these figures differ by 1,793 euros, while Torrent shows particularly high dispersion – 2,887 euros – leading to significant differences in profitability estimates.
In the city of Valencia, most rental rates are concentrated in the range of 10,000 to 15,000 euros per year, although there is a group of properties rented out at higher prices. In Alicante, rates vary between 10,000 and 12,500 euros, while in Castellón in most cases they do not exceed 10,000 euros per year. At the same time, the share of properties with high rents there is significantly lower.
Time needed to rent out a property
The study also assesses the time required for renting out a property by analysing the period between publication and removal of listings. The results show that the market is characterised by relatively short turnaround times, with average figures of:
- 35 days in Valencia;
- 37 days in Castellón;
- 40 days in Alicante.
The analysed data show that the Valencian Community is one of the most active rental markets in Spain and maintains a high level of profitability compared with other regions. In particular, the province of Valencia stands out due to a combination of relatively high rental rates and still moderate housing prices, which explains why it achieves one of the best yield figures in the country.
