Step aside, Barcelona and Madrid – entrepreneurs are choosing Valencia as their home base

It’s morning on Carrer de la Nau, a pedestrianised street in central Valencia’s old town. A postman stops for a chat with the owner of a clothing shop as he drops off a package. Tourists are sipping iced lattes in a speciality coffee shop around the corner. The terrace of Mesón El Molino is abuzz with locals ordering plates of pan con tomate, tortilla and ham sandwiches for esmorzaret, a mid-morning breakfast tradition that has so far successfully fended off the almost-inevitable arrival of brunch cafés.

“Valencia has all the amenities that you would expect from a big city but with the atmosphere of a close-knit neighbourhood where everything is right on your doorstep,” says Laura Albiach, when we meet in her shoe shop, Ona Negra, which opened in 2021. Around us, shelves showcase the best in Spanish footwear, including Barcelona-based Naguisa, Madrid’s Magro Cardona and Elche-based Ángel Alarcón. “I really believe in vida de barrio,” she adds, using a common Spanish term that roughly translates as “neighbourhood life”. She adds, “People don’t just come here to shop: we spend time chatting, I give them advice and I listen to them. There’s a real sense of trust.”

Valencia has long been one of Spain’s most creative cities but, in recent years, its profile has been raised even further thanks to titles such as World Design Capital and European Green Capital. Since 2022, the city has hosted its own fashion week – an event that’s held every autumn to turn the spotlight on Mediterranean brands, from historic names such as Devota & Lomba (a ready-to-wear label conceived by an architect and a tailor that’s earned an array of awards) to resort-wear specialists including Anthias. The retail scene – a mix of local shops and multibrand boutiques including Chapeau that stock labels such as Celine, Saint Laurent and Miu Miu – is tempting luxury shoppers.

Though Valencia is still recovering from devastating floods that tore through neighbouring towns in October 2024, it continues to grow faster than Barcelona – 15,000 residents settled here in 2025, which has pushed the relatively small city towards the one-million-inhabitant mark. Among these arrivals is a wave of entrepreneurs who are bringing fresh energy to the city’s streets. The Marina has been transformed into a business, technology and education hub, making it one of the most promising tech ecosystems in Europe. According to Startup Valencia, a non-profit network founded in 2017, the city is now home to more than 1,650 start-ups in sectors such as health, climate and fintech. Meanwhile, Spanish creatives and makers are also choosing to settle in Valencia, setting up homegrown fashion boutiques, jewellery studios and design spaces that draw on a long history of craftsmanship, while adding a contemporary edge.

Albiach is one such business owner. After more than 10 years in Madrid, in 2021 she left her job in a multinational retail corporation and returned to her hometown to bring together her two passions: shoes and independent retail. “I wanted to open a local business but with a modern twist,” she says, noting that she couldn’t find many of the Spanish footwear brands that she loves in the city’s more traditional shoe shops. “As a native of Valencia and with Alicante being the shoemaking capital of Spain and home to a thriving industry, I have always believed in craft.”

Paula Romero also made the trip back home following a stint in Barcelona. After leaving the Catalan capital with her partner, Vicente Montaner, Romero founded her lifestyle brand, Perenne, and opened a shop near the botanical gardens. Flanked by a florist, a deli and a tapas bar, Perenne occupies a former leather shop on a lively street that houses a mix of traditional and newer businesses. Customers – mostly local residents on their daily stroll – are curious and open to innovative ideas, says Romero. “Barcelona has a well-established retail ecosystem but the pace is so fast that if you don’t keep up, you will get left behind,” she says, as she welcomes Monocle into her light-filled space. “Valencia, on the other hand, moves at a more leisurely pace than Barcelona and allows you to be the first at something, to introduce something new.”

This sense of possibility, combined with a strong history of manufacturing, led designer Jaime Hayon, one of Spain’s top designers, to settle in the city almost 15 years ago, somewhat by accident. Living a fast-paced life in London, Hayon came here to work on one of his designs for porcelain brand Lladró – and stayed. “I wanted to come back to Spain but I didn’t want to go to Barcelona or Madrid,” he says. “For a long time, Valencia was sold quite badly. But in the past 10 years, there’s been a big shift in how things are perceived. People arriving now are full of enthusiasm – they come and never leave.”

With an increasing number of people settling here permanently, rents have increased by almost 10 per cent year on year. There’s a sense that Valencia needs to preserve its character and traditions before it’s too late. In response, businesses and designers are championing local crafts and traditions. “Customers feel a strong connection to our products,” says Montaner. “Perenne’s scents take you back to your childhood when you were out in the orange groves, in the orchard, smelling fig trees or jasmine. Those things are ingrained in the surrounding environment and the people who live here.”

A short walk away, jewellery designer Candela Blasco, a native of Castellón, is similarly rooted in a Mediterranean ethos. After moving to Valencia, she studied jewellery design at EASD design school and her shop, Candela en Rama, sits just down the street from there. Designed by Valencian architects Enne Estudio, the shop features a wall of ceramic tiles by Cerámica a Mano Alzada and terracotta lamps by Barroluz, while an olive branch hangs above the counter like a sculpture. The adjacent workshop where Blasco works looks out onto the street, allowing passersby to observe a process that’s usually kept out of sight. “Candela en Rama is built on a few pillars: the Mediterranean and the sense of tranquillity it brings, craftsmanship and ceramics – which is something that represents our community – and the identity of Valencia,” says Blasco.

One collection, Sembra (Spanish for “sow”), reflects the brand’s strong links to the city: Blasco designed a series of jewels in the shape of grains of rice, referencing the wedding tradition of throwing rice on the bride and groom. “It’s a collection that really moves locals because they identify with it so strongly but visitors also find it very beautiful because they feel that it captures the essence of what Valencia is all about,” she says, referencing the city’s “infectious warmth” and accessibility.

As one of the most bicycle-friendly places in Spain and with 48 per cent of trips made on foot, Valencia is a true 15-minute city – and this benefits small street-level businesses. In Ona Negra, one customer sporting a pair of green sandals that she bought here a few days ago stops to say hello and show off her purchase. “In Valencia,” says Albiach, as she waves goodbye, “life is lived on the street.”