Valencia is one of the most exciting real estate markets in Spain right now. With growing rental demand, attractive property prices, and a vibrant lifestyle that appeals to both locals and internationals, it’s no wonder more and more investors are looking to build long-term rental portfolios here.
But when it comes to buy to let investing, there’s one question we hear all the time:
Should you invest in older properties that need work, or play it safe with new builds from a developer?
To help you decide, we’re comparing two common strategies in the Valencia market:
- Buying old, often distressed properties (sometimes even with squatters), renovating them, and renting them out
- Buying new or off-plan properties, typically delivered turnkey and ready to rent
Each path has its own risks and rewards. Let’s dive into the pros and cons of both.
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🧱 Option 1: Old Properties — High Effort, High Potential
Investing in older buildings in Valencia can be a very lucrative move, especially if you’re comfortable with a more active, hands-on approach.
Many of these properties are located in prime or well-established neighborhoods, where new developments are limited or non-existent. That means you’re not just investing in the building, but in the location and the long-term value of the area.
The pros:
- Lower purchase price: Older or distressed properties usually come at a significant discount, especially if there are squatters or legal complications involved
- Opportunity to add value: A smart renovation can drastically increase both rental income and resale value
- Higher rental yields: Because your total investment is lower, the returns can be much higher, especially in areas with strong tenant demand
- Character and location: Many older properties have original features and charm that modern tenants love, and they’re often located in walkable, vibrant parts of the city
The cons:
- Dealing with squatters: Evictions can be a slow and bureaucratic process, and you’ll need legal expertise to do it right
- Unpredictable renovation costs: Old buildings hide surprises — plumbing, electrical, and structural work can quickly add up
- More management required: You’ll need a reliable local team to handle everything from permits to contractors
- Harder to finance: Spanish banks are more cautious with properties in poor condition or with legal complications
In short, this strategy offers great upside, but you need to be prepared. It’s not for passive investors. It’s for those who want to create value, not just capture it.
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🏗️ Option 2: New Builds — Low Risk, Low Effort
Buying a newly built or off-plan property is the safer, more passive approach. You get a modern, move-in-ready home, often with warranties and new appliances. These properties are easier to rent, easier to maintain, and much easier to finance.
The pros:
- No legal headaches: You avoid the risk and complexity of squatters, tenant issues, or major repairs
- Easier to finance: Spanish banks love new builds, and you’ll likely get better mortgage terms
- Low maintenance: Everything is new, which means lower repair costs in the first 5 to 10 years
- Attractive to tenants: Modern amenities, energy-efficient systems, and clean finishes make these properties appealing to mid- and long-term renters
The cons:
- Higher purchase prices: You’re paying market rate, or even a premium, for a hassle-free product
- Lower rental yield: Because you pay more up front and can’t add value through renovation, your returns are often lower
- Construction risk: If you’re buying off-plan, delays or quality issues can happen
- New developments may lack soul: While some areas are vibrant and up-and-coming, others may feel sterile or isolated until more infrastructure is developed
This approach is ideal for investors who want steady, predictable income without the work. It’s also popular among international buyers who are not based in Spain full-time.
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⚖️ What’s the Best Strategy for Buy to Let in Valencia?
There’s no one-size-fits-all answer.
- If you’re a hands-on investor looking to maximize returns, and you have the time or team to manage the process, then buying older properties and renovating them can be extremely profitable.
- If you prefer a more turnkey experience with less stress and fewer unknowns, then new builds are a safer choice, even if the returns are slightly lower.
At Investing in Valencia, we help investors like you evaluate both strategies based on your goals, risk profile, and budget. Whether you’re looking to transform an abandoned gem into a profitable rental, or invest in a sleek new apartment for consistent income, we guide you every step of the way.