Up and Coming Hotspot: Valencia (Spain’s New Barcelona)
August 16th 2007
Valencia is undergoing a similar transformation to the one Barcelona experienced thanks to the 1992 Olympics.
Two major events – the 32nd America’s Cup (which brought a spectacular yacht marina worth 500 million euros) and the upcoming Grand Prix (for which a new Formula One circuit bordering the harbor, Monaco-style, has been built) – are changing the face of the city and bringing billions of euros into the local economy.
Thanks to this, awareness of the city has increased tremendously and investors are beginning to see Valencia’s true potential as a rising star in Spain.
Much like Barcelona, Valencia has a refreshing combination of old city charm, fascinating modern architecture (the best example being Santiago Calatrava's City of Arts and Sciences, which emerges smoothly from the glassy surface of the Turia river) and sandy beaches.
So far investors in the area are predominantly Spanish, but foreign professionals are beginning to get interested in Valencia as a markedly cheaper alternative to Barcelona. New shopping areas, restaurants, hotels and other recreational facilities are springing up along the city’s waterfront, along with improved communication to the area via new metro stations and additional bus stops.
For individual buyers, investing in a property in Valencia is attractive as well. Prices are still on the rise, which is no longer the case in Madrid and Barcelona. What’s more, the average cost of a property is an estimated 40% lower than in Madrid and almost 50% lower than in Barcelona.
Homebuyers can expect constancy from their investment in Valencia because its property market is fuelled largely by people who want to own a home and live in the city, not by flighty investors or vacationers.
A few areas of interest in the city are Rufaza, which offers well-preserved historic buildings with modern interiors; and the seafront area of Cabanyal, within close proximity to the beach and enjoying some of the city’s best restaurants (this area will improve its communication with the city center by an extension of the main avenue into the district).
With an entire old district open for redevelopment and an upcoming high-speed train connection to Madrid, Valencia’s promise for the future undoubtedly makes it one of the most appealing investment opportunities in Spain for professionals and private consumers alike. | 
