The Real Estate Market in the Valencian Community 2025-2026: Valencia, Alicante, and Castellón in Detail

The real estate market in the Valencian Community is undergoing a profound transformation. With double-digit price increases, unabating international demand, and the impact of the October 2024 DANA event, each province presents a distinct scenario. We delve into the real data, province by province. ## Valencia: Historic Highs and a City Truly Buzzing Valencia province has been a major protagonist in the Spanish real estate market in recent months. According to Idealista data, the average property price in Valencia city reached €3,340 per square metre in February 2026, marking a new historic high with a year-on-year increase of 15.5%. To put these figures into perspective: May 2025 saw prices surpass €3,000 per square metre for the first time, and since then, the ascent has been relentless. The city now stands over €600 above the national average (€2,639/m²). The most sought-after districts are showing figures that would have seemed unthinkable just three years ago. L'Eixample and Ciutat Vella are nearing €5,000 per square metre, while emerging neighbourhoods such as Quatre Carreres (+22.8%) and Patraix (+21.8%) are accelerating strongly, attracting buyers seeking more affordable alternatives without leaving the city. Regarding property transactions, the Valencian Community ranks as the third autonomous community in terms of transaction volume. The presence of international buyers in Valencia province stands at 11.90% according to Q4 2025 data, below the regional average but growing. The rental market in the Valencian capital has also become incredibly strained. The average rental price has reached €15.9 per square metre per month, with a year-on-year increase exceeding 6%. The scarcity of supply, fuelled by the conversion of residential properties to tourist rentals, remains the primary pressure point. ## Alicante: TheThe Preferred Province for International Buyers If there's one statistic that truly defines the Alicante property market, it's this: a remarkable 43.29% of all home sales in the province of Alicante were made by international buyers during the third quarter of 2025. This stands as the highest figure across all of Spain, representing sustained growth from the 34% recorded in 2021. British, Dutch, Belgian, Swedish, German, and Norwegian nationals lead the list of purchasing nationalities, particularly along the illustrious Costa Blanca. In sought-after municipalities such as Torrevieja, Jávea, Calpe, Altea, and Moraira, the foreign presence accounts for over 50% of all transactions. In terms of pricing, Alicante province concluded December 2025 with an average price of €2,508 per square metre, remarkably close to its historical peak of €2,509/m² achieved in October 2025. The year-on-year increase registered an impressive 10.7%. The most exclusive coastal towns command prices significantly above the provincial average. Moraira typically ranges between €3,000 and €3,800/m², Jávea between €2,800 and €3,500/m², and Altea between €2,500 and €3,200/m². In contrast, the Vinalopó interior (Villena, Elda, Petrer) remains in the more accessible range of €600 to €800/m², presenting intriguing opportunities for those seeking properties at more modest price points. The cessation of the Golden Visa programme in April 2025 had a moderate impact on the luxury segment. However, the vast majority of international buyers in Alicante are EU citizens who never required this visa, meaning the underlying market trend remains robust and unaltered. ## Castellón: The Province with Unrivalled Potential Castellón continues to stand as the most affordable province within the Valencian Community, and it is precisely for this reason that it offers the greatest potential for revaluation. The average price in the province stood at €1,496 per square metre at the close of 2025, marking a substantial year-on-year increase of 12.8%. In the capital, Castellón de la Plana, the average price reached €1,550/m²., with notable differences between districts: the Oeste neighbourhood leads the way at €1,666/m², while the Zona Norte is the most affordable at €1,326/m². Coastal towns such as Benicàssim (€1,500-€1,800/m²) and Peñíscola (€1,300-€1,600/m²) exhibit highly competitive pricing when compared to similar destinations on the Costa Blanca. This price differential is beginning to attract discerning buyers seeking beachfront living and a superior quality of life without the premium prices typically found in Alicante. The presence of foreign buyers in Castellón hovers around 10-12%, with Romanian, British, and French nationals being the most frequent. This province currently offers the most significant growth potential in this segment. Rental prices in Castellón capital stand at approximately €9 per square metre per month, representing the most competitive rate among the three provincial capitals. This affordability is increasingly appealing to young professionals and families. ## The Impact of DANA: A Turning Point The DANA weather event in October 2024 has marked a significant turning point in the Valencian property market. It is estimated that over 268,000 properties were affected, with estimated losses reaching €3.94 billion. Municipalities such as Paiporta, Catarroja, Alfafar, Massanassa, and Sedaví suffered devastating damage. The impact on prices has been dual. Homes located in flood-prone areas have experienced drops of 15-18%, while nearby areas deemed safe have seen increases of 6-8% due to displaced demand. Thousands of families who lost their homes sought alternatives in unaffected neighbourhoods and municipalities, further exacerbating an already saturated market. Experts estimate a recovery of prices in affected areas within 5 to 6 years, contingent on investment in preventative infrastructure. Consulting the PATRICOVA flood risk maps has become a mandatory step for any buyer in the province of Valencia. ## Outlook for 2026 ExpertsExperts consulted by Valencia Plaza forecast more moderate price increases for 2026, in the range of 5% to 7%, with rental increases of 6% to 8%. The stabilisation of Euribor at around 2.5-3% is boosting demand, yet the chronic shortage of supply remains the primary driver of price increases. The Valencian Community, with its exceptional climate, superb international connections (Valencia and Alicante-Elche airports), competitive cost of living and renowned quality of life, continues to stand out as one of Europe's most dynamic real estate markets. If you are considering buying, selling, or investing in the Valencian Community, at Vidahome, we provide expert advice backed by local knowledge and up-to-date data. Contact us for a personalised valuation of your property. --- Sources: Idealista (monthly price reports), INE (House Price Index), College of Registrars (Property Registry Statistics), Valencia Plaza. Data updated to February 2026.