Gandia: living and investing in a high-yield coastal town

Gandia, a small town on the Valencian coast, has far more to offer than its fine sandy beaches and sunny climate. Far from being just another holiday spot on the Mediterranean, Gandia is rich in culture, a historic town with a glorious past, and its residents enjoy a high-quality natural setting.

Attractive yields and a village feel by the sea, barely an hour from Spain's third-largest city: discover Gandia, the number one property investment destination in Spain.

History and geography

Nestled between beautiful mountains and the sea, on the banks of the river Serpis (which rises in Alcoi and flows into the Mediterranean), Gandia is a town with a little-known history.

It is the birthplace of the influential Borgia family (originally the Borja) and of the writer Ausiàs March, one of the most illustrious figures of the Valencian Golden Age (14th to 15th centuries).

In medieval times, under Moorish rule, Gandia was an important trading centre. Now a seaside resort, its cobbled streets and buildings bear witness to its glorious past and offer walkers picturesque settings.

The three key dates in the town's history are:

• 1485: the founding of the Duchy of Gandia under the Crown of Aragon. King Ferdinand II of Aragon gave its lands to Juan de Borja, grandfather of Alexander VI, the future Borgia pope. Gandia's growth as a centre of power and culture began at that time.
• 1499: birth of Saint Francis Borgia in Gandia, a decisive event for the town and for religious history. He later played a crucial role in the Counter-Reformation against the criticism of the Protestant Church, and became a key figure of the Jesuit order.
• 1549: founding of the College of Gandia by the duke Saint Francis Borgia. This college, intended for the education of nobles, was the first Jesuit college in the world. Gandia thus became one of the most important centres of education and culture of its time.

Today, the town is the capital of the comarca of La Safor.

Population of Gandia

Figures

According to the latest updated data from the National Statistics Institute, Gandia's population was close to 80,000 in 2023. It has clearly grown since 2022, which is linked to the start of Russia's war of aggression against Ukraine: many Ukrainians have found refuge here. Just over 810 are officially registered, against 400 a year earlier.

Caption: Gandia's population from 2011 to 2023.

Source: INE

Who lives in Gandia

Although Gandia is a small town, its population is diverse. Expats of all backgrounds will quickly feel at home. The gandienses, as they are called in Spanish, are warm and open. The atmosphere is friendly and makes it easy to fit in. Besides the growing Ukrainian community, the 17,000 foreign nationals living in the town include 1,230 French residents. A well-established foreign community, which helps newcomers settle in.

To start buying in Gandia, contact us. Alveo Search helps English-speaking buyers find and buy property in Spain.

Property in Gandia

The Gandia property market offers a wide range of properties at excellent value for money. The rental market is dynamic, attracting people who can no longer afford their rent in the larger cities nearby (rents have risen by almost 16% in the Valencian Community since 2023), families looking for peace and quiet, retirees drawn by the sea, and also students at the Gandia campus, run by a university based in Valencia. Whether investors choose holiday lets, student lets or long-term tenancies, they will get a return on investment that is hard to beat. We will come back to this.

Purchase prices

In Gandia, prices are low, there is no doubt about it. As a reminder, the national average was €2,080/m² in mid-2024: almost twice as expensive. In the town, prices have nevertheless risen by more than 12% since spring 2023. Still far from the record of €1,900/m² reached in 2007, there is plenty of room for growth (37%), which is good news for the long-term value of your property.

Caption: Purchase prices in Gandia, March 2024

Source: Idealista

Unsurprisingly, the most expensive area is the beach, peaking at €1,990/m². By contrast, the most affordable area is Benopia San Pere, at just over €800/m².

Rental prices

For rentals, the average rent is €760 for a 100 m² home. That is €7.6/m². It is low. Even more so given the surge in rents nationwide, and the one hitting tenants in the Valencian Community hard in recent months (+15.9%). In the town of the Borgias, housing cost 10% more in April 2024 than a year earlier. The chart below shows a clearly rising curve. While this means a difficult situation for tenants, it is good news for buyers.

Caption: Rental prices in Gandia since 2010

Source: Idealista

The town is divided into two areas: the most expensive is the beach area, at €8.9/m² (still more than 3% below the national average). The cheapest location is the town centre, at €6.7/m².

Gandia, the highest-yielding town in the country

This is the heart of our topic: Gandia is the highest-yielding town in Spain.

In times of crisis, bricks and mortar reassure. It has always been so, and the economic and security crisis Europe has been going through since Covid-19 is no exception. To protect themselves from turbulence, many people decide to invest their money in property, especially Spanish property (15% of purchases were made by foreign buyers in 2023). These investors then have two options:

• Buy for themselves and start a new life in Spain.
• Buy to let, so that the purchase pays for itself.

In both cases, location is essential, and Gandia is ideal.

So who buys there? Most Spanish investors who choose Gandia live in Madrid and look for a seaside home to get away at weekends and on holiday. Foreign buyers are also more and more interested in this small Mediterranean town. Gandia has two strengths: it is a summer coastal area offering every kind of service, but the technological and tourism growth of the Valencian region in recent years has been one of the key factors in its appeal. To learn more about Valencia, read our article: “Living in Valencia: the complete guide”.

At a time when more and more investors are looking at holiday lets (during the holidays, the Fallas or Holy Week), Gandia stands out because it is attractive all year round, not only during these festive and tourist periods.

According to the latest study published by Fotocasa, one of Spain's leading property portals, Gandia is the only town with an average yield above 10%. It has also gone from a 4.8% to a 10.7% yield in a decade, a huge leap.

Caption: Map of property yields in Spain. Dark green: regions with yields equal to or above the national average. Light green: those below it.

Source: Fotocasa

Caption: Property yields in Spain (by autonomous community)

Source: Fotocasa

To maximise these yields, you need to make the right choices. The best way is to work with a specialist in the area. Our agents can help you. Book a call online with them to discuss your project. They can advise you and, if you wish, handle this investment from start to finish without you even having to travel.

To close this chapter, if you want to learn more about yields, read our full guide: “Maximising the return on your property investment in Spain: a guide for investors”

The advantages of living in Gandia

Gandia is full of treasures to discover, from the medieval remains of the Ducal Palace to beautiful golden sandy beaches lined with palm trees. History lovers will explore the old town with curiosity, while those who prefer the outdoors will enjoy water sports and trips into its picturesque surroundings.

Gandia's beaches

Gandia has 7 kilometres of coastline. You will find two very well-equipped beaches, both of which hold the ISO 14001 standard, which recognises their quality and certifies that they respect the environment. It is an internationally recognised standard.

Nearby, do not miss a day at Ahuir beach, wilder and away from the tourist crowds.

Discovering the town of Gandia

In Gandia itself, do not miss:

• The Palau Ducal, in civil Gothic style, bears witness to the life of the Borgia family. Its Golden Gallery, decorated with oil paintings, is a must. The Ducal Palace is the site most visited by tourists: 12,000 of them visited it in June, July and August 2023.
• The Casa de la Marqués or “Casa de la Cultura” is the town's main cultural centre: exhibitions, concerts, plays and more. Culture lovers will never be bored. Find the town's cultural calendar on this official website.
• Soak up local history by strolling through old Gandia, and make sure you stop at the Convent of Santa Clara.
• The Museu Faller (the Fallas museum) pays tribute to these festivities, recognised as Intangible Cultural Heritage by UNESCO.
• The Museu Arqueològic, created in the early 1970s, traces the history of the town in a superb setting.

In Gandia, as in the rest of the Valencian Community, the food is delicious. The fideuà, a kind of pasta paella, is the region's signature dish. The one cooked by the Hogar del Pescador will not disappoint you: it won the award for Spain's best fideuà in 2023.

Nature and leisure

Gandia is a small island surrounded by nature. Here is our selection of outdoor activities:

• The Marjal de Gandia is a natural area of lagoons and wetlands, ideal for hiking or for cycling lovers. A natural treasure, it is of major importance for biodiversity.
• The Cueva del Parpalló is a major archaeological site dating from the Palaeolithic. The cave is famous for its rock art, with symbols and animals engraved in stone. Children love it.

Would you like to discuss buying in Gandia? Contact us. Our English-speaking team can answer all your questions and support you through a turnkey investment.

The drawbacks of living in Gandia

There are two weak points:

• Jobs can be relatively hard to find: remote workers will be happy here; others will need to start their job search early or perhaps consider a career change. Gandia has recently launched the Smart City project to promote a sustainable way of life through technology, so there is potential for those working in this field. To find out all about the job market in Spain, read our article: “Working in Spain: the complete guide”.
• In summer, the town changes: the streets fill with tourists and prices can rise. The town is getting more and more attention, and in summer 2023 it broke visitor records: in August, hotels were 95% full.

Quality of life and cost of living in Gandia

Data on quality of life and cost of living in Gandia

The quality of life in Gandia is exceptional. Sun, calm and accessibility are on the menu in this small seaside town. Life is relaxed and transport is efficient. It is undoubtedly an attractive destination for families from abroad looking for a balanced life. In Valencia, the nearest big city (allow an hour by train), the quality of life index rose by another two points in 2024 to over 196 on the crowd-sourced platform Numbeo, a sign of an outstanding quality of life. This gives you an idea of Gandia's (a small town for which data are lacking).

The cost of living is much lower than in other European cities and in Spain's big cities. You can enjoy the Mediterranean way of life without breaking the bank.

Some figures:

• Rents range from €400 to €700 a month, which is low compared with the rest of the country and especially the big cities.
• A supermarket shop will cost you about 30% less than in the big cities.
• Transport passes cost between €30 and €50 a month.

Where to live in Gandia?

Living in Gandia with a family:

• Gandia town centre: why? This district stands out for its energy and rich cultural offer. Being in the heart of town means having everything to hand: shops, services and leisure. It makes daily life much easier for families.
• Benipeixcar: why? A quiet district where a sense of community matters and brings residents together. Perfect for families or anyone looking for a peaceful haven not far from the town centre.
• El Grau de Gandia: why? The ideal choice for those who want to live close to the sea and enjoy an (even) more relaxed pace of life than in the centre. Sailing and food lovers will be happy here, with the port and many restaurants nearby.
• Playa de Gandia: who for? For those who want to live by the sea or nowhere. Kilometres of fine sandy beaches for family walks or a morning jog, a wide range of leisure and sports activities, restaurants and bars: you will have everything on the spot. Be aware that in summer this area is overcrowded and prices go up.

Retiring in Gandia:

• The beach, of course: why? Waking up by the sea with services close at hand is a dream you can make come true in Gandia.
• Benipeixcar is also ideal for retirement.
• Beniopa: why? If you have a small pension, want a more affordable option and do not mind being further from the beach, Beniopa could be the answer.

Infrastructure: transport, hospitals and schools

A well-connected town

Gandia is well connected to the rest of the Valencian Community. The nearest airport is Valencia (75 km away, all the same). The railway station is efficient: located in the town, it gets you to Valencia in one hour. The AP-7 motorway runs along the Mediterranean and gives easy access to all the surrounding towns. In town, a bus service takes you everywhere without difficulty.

Healthcare in Gandia

In Gandia you will find Centros de Salud in every district (as everywhere in Spain) for your day-to-day healthcare. Hospitals (one public and several private) are available locally and open to everyone.

• Hospital Francesc de Borja (public):

Address: Avinguda de la Medicina, 6, 46702, Gandia

Phone: +34 962 84 95 00

• IMED Gandia (private)

Address: Carrer de Daimus 26, 46701, Gandia

Phone: +34 962 87 47 40

To find out more about healthcare in Spain, read our guide: “Healthcare in Spain: the complete guide”.

Schooling in Gandia

Your children will have several options: state, private and semi-private schools, and even international schools, popular with expats.

Here are a few:

• Colegio Benipeixcar (state): takes children up to the end of primary school. Teaching is good quality and free.
• Instituto Ausiàs March (state): a good choice if your children are at secondary school and you want a state school. It is free and offers good-quality teaching.
• Colegio Abad Sola (concertado, in other words semi-private): teaching here is trilingual (Spanish, English, Valencian) and the fees are reasonable: less than €100 a month. This is a religious school.
• Colegio British School Gandia: it has a very good reputation. Be aware that this type of school is not cheap (between €300 and €700 a month depending on options). Children study in English, Spanish, Valencian, Italian, German, Chinese and French. French is compulsory and the standard is demanding. There is a school bus service and many after-school activities.
• Colegio Los Naranjos: the school works in the same way as the British School and its fees are similar. French is taught to a high level.

In short, Gandia offers a unique combination of history, natural beauty and property opportunities for international buyers. Enjoy sunny holidays, start a new chapter of your life or invest with your eyes (almost) closed in this small town with big-city assets.

FAQ: Gandia, the highest-yielding town in Spain

What makes Gandia attractive to property investors?

Gandia offers a unique combination of attractive prices, a prime location between mountains and sea, and an exceptional quality of life, which makes it a popular destination for property investment.

What is the yield potential in Gandia?

Gandia shows an exceptional yield, above 10% according to Fotocasa, which made it the highest-yielding coastal town in Spain in 2023.

Who buys in Gandia?

Buyers in Gandia come mainly from Madrid and from abroad, especially France and Ukraine. They are drawn by the living conditions and the opportunities the town offers.

What are the advantages of short-term lets in Gandia?

Short-term lets, especially in summer, during the Fallas or Holy Week, offer high yields to property investors in Gandia, thanks to growing tourist demand.

What else does Gandia offer apart from property?

Gandia is full of historic treasures, such as the Ducal Palace, as well as beautiful golden sandy beaches lined with palm trees. The quality of life is exceptional, with good healthcare, international schools and an affordable cost of living.

How does Gandia compare with other property destinations in Spain?

Gandia stands out for its exceptionally high rental yield, higher even than other Spanish coastal towns. Its property market also offers excellent value for money compared with other popular destinations in Spain.

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