A Mediterranean region in south eastern Spain, Valencia is made up of three main provinces, Alicante, Valencia and Castellon. The capital is Valencia City.

What's so special about it?

Valencia has been making strives to increase its profile on the world stage. In 2006 and 2007 it played host to the Americas Cup tournament. In preparation for the event 1bn was spent on infrastructural improvements, including a new high speed rail link from Madrid, redevelopment of the Inner Harbour and the extension of the metro and main airport. In May Formula 1 boss Bernie Ecclestone announced that Valencia will be the host of an urban circuit, beginning in 2008. There are clear plans to transform the city into a world centre for the lucrative motor sport, similar to what was achieved in Monaco.

Best kept secrets The area's history traces back to the heady days of the Kingdom of Valencia in the 13th century. It was amalgamated into the rest of Spain, however the region has always retained a certain independent spirit.

During the 30s Valencia attempted to break away from the rest of Spain and although the Civil War halted its plans in the 70s it awarded partial autonomy and eventual self government in 1982. As a result Valencia has its own language and is recognised as a separate nationality to Spanish.

Who lives here?

Valencia is already a popular location for singers Julio Jose Iglesias Jr and the group Duran Duran, acting couples Ashton Kutcher and Demi Moore and Catherine Zeta Jones and Michael Douglas, models Naomi Campbell, Jodie Kidd and Petra Nemkova and royalty such as Prince Albert of Monaco.

What's the property market like?

Although Valencia City is the third largest city in Spain and its port is one of the busiest in the Mediterranean, it is neither one of the best known nor one of the more expensive locations in Spain. However, that is about to change. The area attracts over four million visitors each year and was reportedly the most popular destination for people buying in Spain in 2006.

A major attraction is the fact that property is 11% below the national average. Last year prices per square metre showed that Barcelona, San Sebastian and Madrid were the most expensive, averaging 4,603, 4,408 and 3,800 respectively. Valencia, while being the third largest city, ranked eighth and prices increased by 6.6% from 2005 to 2006 and in Valencia City by over 15% in 2006.

"As a city Valencia is driven by the local economy, so overseas buyers are not an important part of the market, " reports Mark Stucklin from Spanish Property Insight. While British and Irish buyers make up the biggest foreign investors this strong local market means that prices will be less susceptible to foreign confidence in the market and holiday makers.

How do you go about buying property?

When researching information on Valencia, local English newspapers in the area include Costa Blanca News and ThinkSpainToday. Agents can be sourced locally through the Asociacion Empresarial de Gestion Inmobiliaria (AEGI) or in Ireland through the AIPP or FOPDAC. One important issue to be aware of in Valencia is the Ley Reguladora de la Actividad Urbanistica (LRAU), a law whereby if a developer has put forward plans for a development using other people's land they do not currently own, and the plans are approved by the authorities, the land they currently do not own must be sold to the developers.

Therefore, before you consider buying in Valencia is it advisable to check the plans for the area where the property is located to make sure the property is not situated on land which is part of a larger development or project.

Where are the best places to buy?

In terms of where to buy, agents at Kyero report that their data shows there is a difference in prices in the regions. Towns such as Bocairent located inland, has properties 30% below the province average, Casinos, north-west of Valencia City is 40% below and Oliva, on the southern coast at 10% below. The more expensive areas are Chiva, on the main highway west of Valencia City, where prices are on average 18% higher;

Monserrat, located south-west of Valencia City is also 18% higher and Valencia City is about 16% above the province average.

What's the rental market like?

The local market is strong and while there are a lot of rental properties there is a shortage of quality accommodation.

Valencia City is a student town as the University of Valencia is one of Europe's oldest universities and the city has a large student population eager for long term rental accommodation. The data from Holiday Rentals also shows that the region is the second most popular Spanish region with those looking to rent properties in the area.

What's the resell market like?

Daniel R Talavera, editorial and marketing manager for Property Secrets Spain reports that, like the rest of Spain, last year there were high offers and a lot of buildings for sale but now the offers have slowed down.

Average property prices?

During the last quarter of 2006 the average price of new buildings was 2,561 per square metre with the average asking price 222,000, 11% below the national average.

What are the tax breaks with Ireland?

Ireland has double taxation agreement with Spain. Irish buyers must register with the Spanish Tax Agency and it is advisable to also make a Spanish will.

FAST FACTS

Getting there: Ryanair flies from Dublin to Valencia
Area: 23,259sq km
Population: 4.8 million
Currency: Euro
Weather: Mediterranean coastal with temperatures ranging from 12degreesC in winter to 26degreesC in summer
Transport: Valencia Airport (VLC) is 9 km from the city centre, there are train and bus links to the major Spanish cities, Valencia port is one of the busiest on the Mediterranean, Valencia City has a metro system and there are plans to redevelop the harbour, metro and airport
Going out: Carmen is the main clubbing area, as is the student area of Blasco Ibanez. In Summer the port and beach are popular and the local tipple is Agua de Valencia, consisting of champagne, vodka and orange juice. La Tomatina, an annual tomato flght is a popular event and sports fans should check out Valencia CF's stadium
Eating Out: Valencia is the birthplace of paella and every March the Las Fallas festival celebrates the region's gastric treats. Novelist Ernest Hemingway also declared that "the seafood and the Valencian rice dishes were the best"
Shopping: Valencia's International Trade Fair is the oldest in Spain and takes place in Benimamet Mercado Central has many well known brands and Plaza Redonda has an open-air flea market

USEFUL CONTACTS

>> Irish Embassy in Madrid: 0034-91436 4093; embajada@irlanda. es
>> Honorary Consul of Ireland in Alicante: 0034-965 107 485
>> Spanish Embassy in Dublin: 01-283 9900; www. mae. es/embajadas/dublin
>> Asociacion Empresarial de Gestion Inmobiliaria: www. aegi. es
>> Association of International Property Professionals: www. aipp. org. uk
>> Federation of Overseas Property Developers, Agents and Consultants: www. fopdac. com
>> The Global Property Guide: www. globalpropertyguide. com
>> MyOverseasProperty: www. myoverseasproperty. ie
>> OverseasList: www. overseaslist. com ICEX (Spanish Institute for Foreign Trade): www. icex. es
>> Official website of the city of Valencia : www. valencia. es
>> Valencia City Official Tourist Board: www. turisvalencia. es
>> Property lawyers Abroad Network: www. plani. net
>> The Economist (Spain): www. economist. com/countries/Spain/