The Valencian real estate market is beginning to show signs of a slowdown after several years marked by strong demand, a high volume of property transactions and rapidly moving supply. During the first months of 2026, transactions have declined and the time needed to complete a sale has increased. Today, we look at this development from Quinta Avenida and analyse what is happening in both the housing market and the rental sector.
The Valencian real estate market records fewer transactions
According to the first 2026 real estate barometer from the Association of Real Estate Agencies of the Valencian Community (Asicval), real estate agencies in Valencia recorded an average 4.6% decline in transactions during the first quarter of the year.
However, the evolution has not been the same for every agency. Around 40% of the businesses surveyed reported that their property sales had decreased by between 5% and 25%, while approximately 24% reported increases within the same range. Another 25% considered activity to have remained broadly stable compared with the same period of the previous year.
The slowdown can also be seen in the number of people contacting real estate agencies. Around 44% of the professionals surveyed said they had received fewer enquiries from people interested in buying, selling or renting a home. Meanwhile, 33.3% considered the number of enquiries to have remained stable and 22.5% reported an increase.
Property transactions are taking longer to complete
The slowdown is not only reflected in the number of home sales, but also in the time required to complete transactions.
During the first quarter of 2026, real estate transactions took an average of 2.3 months to complete, compared with 2 months during the same period in 2025. This means that the average timeframe has increased by approximately 0.3 months.
The behaviour of reservations and property sales is also varied. Around 36.4% of real estate agencies considered the volume of transactions to have remained stable, while 33.3% reported decreases and 30.2% said they had experienced increased activity.
At the same time, the acquisition of new properties for agency portfolios has also declined. Around 42.75% of agencies reported adding fewer homes to their portfolios during the first quarter, compared with 35.4% that saw no significant change and 21.8% that increased their listings. The shortage of available properties is also influencing this trend.
Property prices continue to rise, although at a slower pace
Despite the moderation in transactions, home prices continue to increase. During the first three months of 2026, the average price rose by 5.4%, reaching €270,000.
However, sector expectations point towards slower growth. Forecasts included in the barometer indicate an average increase of 2.5% by the end of the second quarter.
This situation shows that the decline in activity has not, at least for now, resulted in a general reduction in property prices. The shortage of housing supply continues to be one of the factors shaping the market’s evolution.
The rental market remains under pressure due to limited supply
The situation is different in the rental market, where pressure between supply and demand remains high.
Around 46% of the real estate agencies surveyed said that rental demand had remained stable or had even increased while the supply of available homes had decreased. The result is a market characterised by a significant imbalance between people looking to rent a home and the properties available.
Looking ahead to the second quarter of 2026, 54.2% of agencies expect demand to remain at similar levels, while 38.5% expect it to continue growing. Only 7.3% anticipate a decline in demand.
On the supply side, 83.1% of agencies believe that the availability of rental properties will remain stable or continue to decrease. Only 16.8% expect the supply situation to improve.
Local buyers remain dominant while international clients gain ground
The Valencian real estate market continues to depend primarily on local demand. Around 90.5% of agencies reported that their buyers or tenants come from within the Valencian Community.
However, international clients continue to have a significant presence. Around 93.7% of the real estate agencies surveyed work with foreign buyers, mainly from European Union countries, who account for 63.2% of this group. There is also a presence of buyers from other nationalities, representing 30.5%.
Overall, foreign clients account for an average of 25% of the portfolios of the agencies surveyed.
Conclusion
The figures for the first quarter of 2026 show that the Valencian real estate market is entering a period of greater moderation. Property sales have declined by an average of 4.6%, transactions are taking longer to complete and agencies are detecting lower activity in certain segments. At the same time, home prices continue to rise, although growth is expected to become less intense.
In the rental market, meanwhile, pressure remains high due to the combination of strong demand and limited supply. This environment highlights the importance of analysing each area and each property individually.
At Quinta Avenida, we continue to monitor developments in the real estate market to provide you with up-to-date information and professional advice. If you are looking to sell, buy or rent your home, have questions or would like to know the value of your property, you can contact us or visit the Quinta Avenida website.
