Real estate in Spain

Investing in seaside vacation property in the Valencia region offers a number of advantages and special features, especially if you’re considering short-term rentals. Here are the main points to consider:

Attractive climate: Valencia enjoys a Mediterranean climate with warm summers and mild winters, attracting holidaymakers all year round. This increases the potential for short-term rentals, especially during the peak summer season.

High tourist demand: Valencia is a popular tourist destination for its beaches, rich culture and gastronomy. The seaside towns attract not only Spanish holidaymakers, but also international ones. This creates a sustained demand for vacation accommodation.

Relatively affordable property prices: Compared to other Spanish coastal regions such as the Costa del Sol or the Balearic Islands, property prices in Valencia are still relatively affordable. This makes it an attractive investment opportunity, with good potential for appreciation.

Valuation potential: Real estate in Valencia, particularly by the sea, has seen an increase in demand, which suggests a potential for valuation in the medium to long term, while benefiting from regular rental income.

High profitability: Short-term rentals can offer higher profitability than long-term rentals, especially in tourist areas. In periods of high demand (summer, vacations), rental prices rise, which optimizes returns.

Flexibility: Short-term rental allows owners to use their property during off-peak periods, or to rent it out to friends and family. This is an advantage for those who want to enjoy their property while generating income.

Local regulations: As in other Spanish regions, it’s important to check local regulations concerning tourist rentals. In Valencia, a tourist license may be required for short-term rentals. Local authorities sometimes impose strict rules, particularly on accommodation conditions and the declaration of rental income.

Tenant management: You can hire specialized agencies to manage your tenants in exchange for a management fee.

Tax deductions: In Spain, certain expenses related to the operation of a rental property (repairs, management fees, etc.) are deductible from rental income, which can lighten the tax burden.

Reduced rental vacancy risks: With a short-term rental model, rental vacancy periods are often shorter, as tourist properties in attractive areas like Valencia are generally in seasonal demand.

Investing in seaside vacation real estate in the Valencia region for short-term rental is a potentially profitable strategy, thanks in particular to strong tourist demand, still affordable prices, and favorable climatic conditions. However, it’s important to bear in mind the local peculiarities, in particular the rules governing tourist rentals and the more active management required by seasonal rentals.

Example of expected return:

Purchase of a vacation apartment in the Valencia region EUR 250’000.- EUR 500’000.- : Enjoy the sun a few weeks a year and weekends, 2 hours by plane from Geneva, AirBnB rental EUR 10’000.- EUR 18’000.-