According to the latest report by valuation firm Euroval, residential rental yields in the Valencian Community range from 7.6% to 10.3% per year, depending on the province. The study also highlights that the Valencian Community ranks among the most active rental markets in Spain, alongside Andalusia, Madrid, and Catalonia, where rental activity is heavily concentrated.
Supply Distribution and Yield by Province
The rental supply within the Valencian Community is clearly concentrated across its three provinces:
- Valencia accounts for 48% of rental listings.
- Alicante follows closely with 44%.
- Castellón represents the remaining 8%.
All three provinces exhibit relatively high rental yields, though variations arise primarily from differences 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—the highest in the region—and a moderate average housing price of €162,925.
In Alicante, the average annual rent is €14,513, while the average housing price is higher at €191,119, resulting in a yield of approximately 7.6%. Castellón posts a yield of 8.7%, reflecting relatively high rents compared to housing prices.
Yields in Major Cities
- Alicante city shows a rental yield of around 7.6%.
- Elche achieves approximately 8% yield.
- Valencia city’s yield is lower at 7%, mainly due to higher property prices.
- By contrast, Torrent records a yield of 10.1%, aligning with the provincial average.
Variation in Rental Rates
The report also examines the dispersion of rental prices by comparing average and median values. In Alicante province, the difference between average and median rents is €2,513, with the average yield exceeding the median by 1.3%. Castellón shows a €1,600 gap, with the average yield 1.5% higher than the median. Valencia province has a difference of €1,793, while Torrent exhibits a notably high dispersion of €2,887, leading to significant variations in profitability estimates.
In Valencia city, most rental prices fall between €10,000 and €15,000 per year, though some properties command higher rents. Alicante’s rental rates generally range from €10,000 to €12,500, while in Castellón, most rents do not exceed €10,000 annually, with fewer high-rent properties.
Time to Rent Out Properties
The study also evaluates the average time required to rent out properties by analyzing the period between listing publication and removal. The findings indicate relatively quick turnover times across the region:
- 35 days in Valencia;
- 37 days in Castellón;
- 40 days in Alicante.
These figures underscore the Valencian Community as one of Spain’s most active rental markets, maintaining a high level of profitability compared to other regions. The province of Valencia, in particular, stands out due to its combination of strong rental rates and moderate housing prices, resulting in some of the best rental yields in the country.