The rental market in the Valencian Community has undergone significant changes in recent years, characterized by rising prices, increased competition, and new regulations aimed at balancing tourism growth with residents' needs.

📈 Rental Price Trends

Over the past decade, rental prices in the Valencian Community have surged by approximately 139%. Cities like Gandia and Dénia have experienced increases of 185% and 129%, respectively, while Valencia City has seen a 150% rise. As of early 2025, certain municipalities, including Alboraya (€14.44/m²), Canet d’en Berenguer (€13.13/m²), and Benidorm (€12.82/m²), have rental prices surpassing those in Valencia City (€11.30/m²)

🏘️ Market Competition

The demand for rental properties has intensified, with listings receiving an average of 31 inquiries before being removed, a 298% increase from 201. In Valencia, approximately 32 families compete for each rental listing, highlighting the fierce competition in the market

🏖️ Regulation of Tourist Rental

In response to the rapid growth of tourist rentals, the Generalitat Valenciana enacted Decree Law 9/2024 in August 204. Key provisions include:

• *Rental Duration: Tourist accommodations can be rented for a maximum of 10 consecutive days to the same tenant.
• *Room Rentals: Renting individual rooms within tourist accommodations is prohibited.
• *Licensing: Licenses are non-transferable upon property sale; new owners must apply for a new licence.
• *Penalties: Fines for non-compliance can reach up to €600,00.
• *Municipal Authority: Local councils have increased authority to limit tourist rentals in specific areas

Additionally, a one-year moratorium on new tourist apartment licenses was imposed in May 2024 to address the long-term rental crisis

🏢 Investment Opportunities

Despite regulatory changes, the region remains attractive to investors. As of late 2024, gross rental profitability in the Valencian Community reached 7.2%, with commercial properties in Alicante achieving up to 10.1% returns

In summary, while the Valencian Community's rental market offers promising investment opportunities, stakeholders must navigate a complex landscape shaped by rising demand, regulatory reforms, and evolving market dynamics.