Competitive Spanish fixed-rate offers for non-residents
Quick overview: Explore the latest Spanish mortgage rates and discover one of the most affordable coastal areas in Spain to buy property.
When embarking on the property buying process, the right support can make a world of difference.
Homevest is a digital platform that helps non-residents access the best mortgage deals in Spain. The platform centralizes the customer's cross-border house-buying journey into one place, allowing them to communicate efficiently with all parties involved and easily track their progress.
Now, let's look at how mortgage rates evolved over the past month.
Fixed-rate offers have been very competitive for non-residents in May
A fixed-rate mortgage might be ideal if you value the predictability of fixed monthly payments and are looking for the lowest available rate. The best average mortgage rate in our dataset for May was 2.80%, a slight decrease from April's rate of 2.98%.
This rate was for a fixed mortgage from Sabadell, on a property in Sevilla, with a 70% LTV ratio, offered to a Spanish citizen living in The Netherlands. The term of the mortgage offer was 25 years.
The average interest rate in Spain was 4.72% in May, continuing to decline from 4.91% at the beginning of the year. Banks are making more competitive offers, and the average wait time was 3 days, a significant improvement compared to the previous month.
The mortgage rate can vary depending on the type of property you buy, its value, and how much deposit you give. Take your time and look at all available options.
Valencia joins other Spanish cities in suspending new tourist apartment licenses
Last month, Valencia suspended new tourist apartment licenses for one year, with some exceptions.
The suspension applies within Ciutat Central and certain areas of the city with a high presence of tourist housing, such as Benimàmet, Carpesa, Poble Nou, La Punta, El Palmar, El Saler, and El Perellonet.
The suspension will not affect license applications that were already in process.
What’s the property market in Valencia?
Valencia is becoming increasingly popular. One of the city’s most compelling propositions for investors is its affordability and high-yield potential.
The cost of living in Valencia is more affordable than in Madrid or Barcelona, and this affordability extends to property prices. It’s no wonder Valencia is becoming one of the Spanish areas with the highest demand among real estate investors.
As of May, the average price for residential properties in Valencia was €2,357 per m².
To put this in perspective, instead of buying a single apartment in Paris, you can afford up to 5 properties in Valencia. The price per m² for an apartment outside the city center is 81% higher in Paris.
Also, housing prices in Valencia are 25% cheaper than in Malaga. Compared to Barcelona, Valencia's prices are up to 56% cheaper.
Best places to buy a property in Valencia
There are 19 districts in Valencia to choose from—some are more expensive than others, some closer to the seaside.
Eixample: one of Valencia's most upscale neighborhoods
Average price per m²: €4,000
The area offers modern amenities and a historical charm.
Ciutat Vella: the historic heart of Valencia
Average price per m²: €3,500
You’ll find predominantly resale properties due to the historic nature of the area and the restrictions on altering existing buildings, which limit new developments.
Ruzafa: more budget-friendly options
Average price per m²: €2,800
Modernist buildings, elegant art deco facades, and repurposed industrial spaces.
Cabanyal: beachside location
Average price per m²: €2,100
Most houses in this area are renovated old fishermen’s huts, giving it a unique charm.
Benimaclet: high potential for growth
Average price per m²: €2,100
You can find a mix of apartments and townhouses at affordable prices.
The city attracts many tourists, creating a high demand for apartments.
If you’re not buying to relocate, which would be an investment in your future, you could rent out the property for the long term. Or you could purchase a fixer-upper, renovate it, and sell it for a profit.
Remember to compare all available options, whether it's property prices, investment areas, or mortgage choices.