Valencia is a top destination for the French who wish to invest in real estate, whether for a primary residence, a rental investment, or a second home.
With its attractive prices, pleasant Mediterranean climate throughout the year, and high quality of life valued by both families and young professionals, the city attracts many buyers each year.
However, as with any real estate market, there are potential pitfalls along the way, such as unpleasant surprises related to the property’s condition, administrative constraints, or local market specifics.
To help you avoid setbacks and successfully carry out your project with peace of mind, here’s an overview of the main pitfalls to be aware of and avoid when buying property in Valencia.
Buying a property is a key milestone in life—it’s best to be well-informed to make the right choices!
Mistakes to avoid when buying property in Valencia
Overlooking Legal and
Administrative Differences
Buying property in Spain is not the same as in France. For example, the role of the notary is more limited in Spain. The notary only ensures the legality of the sales contract but does not conduct thorough checks on the property, such as outstanding mortgages or debts.
Avoid: Relying solely on the notary to secure the transaction.
Solution: Hire a specialized agency to verify documents and ensure the property is free of any debt or mortgage.
Buying Without a Thorough Property Inspection
In the excitement of finding your dream home, it’s easy to overlook critical details. However, some properties—especially those in need of renovation—may hide structural issues or outdated installations.
Avoid: Purchasing a property without a prior inspection.
Solution: Hire an architect or real estate expert to conduct a full audit before signing any agreement.
Underestimating Additional Costs
The listed price of a property is never the final cost. In Spain, several additional expenses must be factored in, including:
- Property transfer tax (ITP): Between 8% and 10% in the Valencia region.
- Notary fees.
- Land registry fees.
- Administrative management fees.
- Possible real estate agency commissions.
Avoid: Failing to budget for these extra costs.
Solution: Plan for a total budget that includes these expenses, which can add up to 15% of the property price.
Ignoring Local Regulations
Some properties, especially those near the coast or in rural areas, may be subject to urban planning restrictions or specific regulations (illegal constructions, protected zones).
Avoid: Buying without checking urban compliance.
Solution: Request an urban planning certificate (Certificado de Urbanismo) from the local municipality to verify that the property meets regulations.
Not Understanding the Local Market
Valencia is a diverse city, and not all neighborhoods offer the same property value, quality of life, or rental potential. Buying in a poorly connected area or outside prime zones could limit your investment’s appreciation.
Avoid: Purchasing without knowledge of neighborhood specifics.
Solution: Work with a local real estate agent who has in-depth knowledge of the Valencia market.
Investing Without Knowing the Rental Potential
If your goal is to buy property for rental income, it’s essential to understand the local rental demand. Not all areas are equally attractive to tenants, whether they are students, expatriates, or tourists.
Avoid: Buying without analyzing rental profitability.
Solution: Study rental trends and target areas suited to your investment goals (e.g., Ruzafa for expatriates, Ciutat Vella for tourists, university districts for students).
Rushing Under Sales Pressure
Some real estate agents or sellers may push buyers to act quickly by mentioning competing offers. This can lead to rushed decisions.
Avoid: Giving in to pressure and signing too quickly.
Solution: Take your time to compare multiple options before committing.
Not Anticipating Renovation Costs
Many properties in Valencia require renovation, especially in historic neighborhoods. However, renovation estimates can vary significantly, and unexpected costs may arise once work begins.
Avoid: Underestimating the cost or duration of renovations.
Solution: Obtain a detailed quote from a trusted professional before purchasing and plan for a contingency budget for unforeseen expenses.
Surround Yourself with Experts for a Secure Purchase
Investing in real estate in Valencia is an exciting venture, but it requires careful planning and professional guidance. To avoid common pitfalls, it’s best to work with competent professionals, such as a real estate lawyer, a local agent, and technical experts.
With the right support, you can make the most of the fantastic opportunities Valencia offers while securing your investment.
Do you have a real estate project in Valencia? Our team is here to guide you every step of the way with transparency and expertise.
