The real estate market in the Comunitat Valenciana has long attracted the interest of developers and investment funds across various segments, including residential, student residences, logistics warehouses, and offices. However, the current complex housing situation has led to a new phenomenon: the emergence of funds specializing in public protected housing (VPP).
These investors are focusing on the province of Valencia, as noted by a sector executive. Interest in protected housing is very high, and developers and funds dedicated exclusively to this product are already being observed. These players are seeking land, having identified a business opportunity in public protected housing, which is also a priority for the current Consell, aiming to promote 10,000 units this legislature.
VPP promotions surged in 2025 in the Comunitat Valenciana, registering double the provisional qualification requests for protected housing, reaching 1,837, according to data from the Ministry of Housing and Urban Agenda. This investor appetite is significant, despite the current module price of 2,400 euros per square meter.
“"I believe this price should increase slightly because construction costs are rising and margins are tight, but even so, highly specialized funds in protected housing are emerging."
The future of real estate development lies in affordable housing, given the need for assets that a larger portion of the population can afford amidst the current price escalation for both second-hand and new-build properties. To create affordable housing, it is essential to develop more land, including areas beyond the metropolitan area, such as the inland axis towards Utiel, passing through Cheste, and the northern and southern axes of Valencia.
To achieve a balance between developer profitability and affordable housing prices, models already existing in other countries and autonomous communities are proposed. One example is Catalonia, where the private sector can make land available to the public sector for construction with soft loans, retaining management of the building and VPO returns for several years. Public-private collaboration, as seen in the United Kingdom, is key.
“"I believe the public sector needs to focus on regulating; on developing land and removing obstacles. It must be capable of enacting the famous land law that we have all been wishing for for some time."
The convening of a round table by the Administration, bringing together all sector stakeholders, is proposed to achieve more ambitious developments. It is necessary to distinguish between public housing promoted by the public sector and that developed by a private operator, whether on public or private land. In all cases, access is restricted by economic requirements.
Over the past 10 years, the public sector has only executed 26 protected homes in the Comunitat Valenciana, compared to over 3,400 VPO units from the private sector. The paralysis was such that from 2014 to 2021, the public sector did not promote any protected housing in the region, according to data from the Ministry of Housing.
The company Aliseda, for example, has a portfolio of 153 plots in the Comunitat Valenciana with the capacity to develop 14,808 homes and an estimated value of 296 million euros. In Valencia province alone, it manages 50 plots with potential for 3,015 homes and a value close to 38 million euros. The company focuses on land and tertiary assets in a market driven by strong demand and growing investor interest.
Among its current projects, they manage a plot in an advanced stage of urban planning in La Albufereta (Alicante) for 589 homes, a tertiary plot of 30,000 m² in L'Eliana, and a tertiary/logistics plot of 360,000 m² in Onda. They also manage residential plots in Castellón and Puerto de Sagunto, and a rustic estate in the Benidorm area. They maintain active management of residential land in key locations such as Gandia, Tavernes de la Valldigna, San Juan, Burriana, Orihuela, Oropesa del Mar, Alicante, San Vicente del Raspeig, Sagunto, Cárcer, and Paterna, among others.
In addition to residential land, Aliseda is advancing its position as a leading asset manager in the Spanish market, with a growing focus on CRE encompassing tertiary assets such as offices, logistics, retail, and hotels. In the last ten months, it has identified over 2.4 billion euros in off-market opportunities.
Valencia has consolidated itself as one of the main real estate hubs in southern Europe, thanks to its competitive prices, legal certainty, strategic location, and talent availability. The company highlights the role of its subsidiary EFFIC, specialized in energy efficiency, in promoting the rehabilitation of the real estate stock and decarbonization.
