Valencia’s growing appeal as a prime location for real estate and for important international events could soon be boosted as the city bids to host another important sporting event.

Hopes are now high that Spain’s third city will host the Champions League final in 2011, after a Uefa delegation conducted a full review of the city’s suitability for one of football’s biggest events.

A new premium was placed on property in Valencia in recent months as the interest of sports enthusiasts was aroused by the Formula One decision to hold a circuit in the city from 2008.

But the likes of Lewis Hamilton could be accompanied on their Valencian visits by Europe’s top football stars – as city representatives claimed that the Uefa visit helped to show the strength of Valencia’s claim.

Competition for the honour of hosting the event will be stiff, with London’s Wembley Stadium, Berlin’s Olympiastadion, and fellow Spanish location, Real Madrid’s Bernabeu, also in the running,

But Valencia’s famous Mestalla stadium is a strong contender, located at a close distance to the city centre and served by metro links, while the city’s airport is well connected by various budget airline routes.

Plans for new expansion at London’s Heathrow airport have been brought into the next phase as consultation starts for a third runway and possible sixth terminal at the busy hub.

People travelling frequently to destinations like Spain will be enthused by news of plans to ease the airport’s current congestion, with delays at the airport often dissuading otherwise eager travellers from taking more trips.

Ministers indicated that the suggested new runway and accompanying terminal would not only ease current problems, but would allow Heathrow to handle as many 700,000 flights a year – around 50 per cent more than at present.

Transport secretary Ruth Kelly said: "For too long it has operated at nearly full capacity, with relatively minor problems causing severe delays to passengers."

Airlines such as Iberia run frequent flights between Heathrow and popular Spanish destinations like Valencia – with the planned expansion set to boost the potential for offering new routes from the London hub.

Leading Spanish carrier Iberia has long been in the throes of a takeover deal, with news emerging this week of a bid from a Spanish private equity group threatening to upstage current favourite for the deal, British Airways.

UK hotel chain Travelodge is set to target the Spanish market, highlighting the potential of Iberia’s growing consumer market to provide business opportunities.

Travelodge is planning to set up 100 hotels by 2020, with the three major Spanish cities - Madrid, Barcelona and Valencia – identified as target locations.

The company said that its plans were based on the strength of demand in Spain for budget, no-frills services, with internal tourism growing and offering ample opportunities for accommodation providers.

Chief executive Grant Hearn said: "Travelodge has an important role in international markets, like Spain, which are building high-demand for the no-frills approach."

He added, however, that much of the demand for Spanish accommodation came from Iberia-loving Brits, stating: "We also know that 61 per cent of our 1.5 million UK online customer base is planning to take a trip to Spain within the next three years."

Valencia is likely to be a fruitful choice of location for Travelodge, with demand for housing and tourist services in the south-eastern city predicted to rise as the arrival of the Formula One circuit to Valencia boosts its already popular appeal.

Spanish real estate specialists have claimed that UK buyers are finding top property bargains in many beautiful but as yet underrated Iberian locations.

Property forum Kyero.com identified below average house prices as a prime incentive for property seekers looking into up-and-coming regions in the north-east and south-east of Spain.

The Cuenca area of Castilla La Mancha, just north-west of Valencia, Spain’s third city, was claimed to be a bargain area, with the average property price around €41,000 (£29,000), well below the Spanish average of €248,000.

Meanwhile the Catalonian province of Tarragona on the north-east coast was also identified as a location for bargain-hunters on a slightly higher budget, with average property valued still below average at €226,000 – showing that seaside property can also be affordable.

Neighbouring north-eastern coastline the Costa Azahar has also been identified as a top location for picking up coastal property at below average prices – and in a region famed for its tranquillity and authentic Spanish lifestyle.

Martin Dell, managing director of Kyero.com, said that there was plenty available for UK seaside-seeking property hunters.

"The majority of British buyers are still looking for coastal locations and with nearly 5,000 km of varied coastline from spectacular cliff faces to white sandy beaches Spain does not disappoint."

Spain’s all-round lifestyle and business appeal has been recognised by a seventh place finish in a global Country Brand Index.

This year’s ratings from FutureBrand, a brand consultancy branch of the Interpublic Group of Companies, saw Spain excel in categories such as ‘Best Country for Nightlife’, while performing well against a range of criteria to finish in a top ten spot.

Other factors taken into account were the suitability of a country as a location for doing business, possibilities for family activity and cultural authenticity.

With cities like Barcelona, Madrid and Valencia adding their cultural and business weight to Iberia’s appeal, Spain finished just behind top-performers Australia, USA and the UK, ranking well against continental rivals.

Rina Plapler, executive director of FutureBrand, said: "A country’s brand reputation is in itself a powerful currency. Reputation drives financial and business investment, sustainable growth and helps add fuel to the private and retail sectors."

Spanish growth has in recent years made the country more brandable – with job creation above Eurozone averages helping to end the country’s reputation as merely a holiday destination.

Property in Valencia could be given a boost when the city hosts the European Grand Prix, it has been claimed.

Spain’s third city has been confirmed as the location for the event between 2008 and 2014, provoking renewed interest in Valencia and fuelling expectations of its property gaining value.

Set to rival Montecarlo’s famous street race, the Valencia circuit will trace its route around the city’s America Cup port, becoming a fixture with the racing world as part of a seven-year deal with Formula One mogul Bernie Ecclestone.

The potential effects on Valencian housing have been highlighted by Assetz Property News Service, as it looked forward to driver Lewis Hamilton’s move to Switzerland.

"Not since Valencia gained the boost of having the European Grand Prix awarded to it from 2008 to 2014 has a property market had such a boost from Formula One," said the site.

Valencia’s America’s Cup port is already an asset to the city’s sporting credentials, featuring the famous sailing event which ranks high on the international watersports calendar.

People owning property in the Valencian area could benefit from a tax break as Spanish authorities revamp rural and urban area classifications, it has been claimed.

According to property specialist HomesWorldwide, the reclassification of land previously labelled urban will temporarily exempt some properties from the Spanish equivalent of council tax during the process.

As many as four million square metres of land are reported to be on the way to returning to rural status, with houses in the affected Valencia, Alicante and Castellon provinces benefiting from delayed tax collection at present.

More good news could be on the cards for UK property owners and locals in the regions, with a transfer back to rural status promising a lower tax threshold, due to the higher premium placed on houses in urban or ‘urbanisable’ properties with development potential.

The tax in question, the IBI, translates roughly as a property tax, with local authorities deciding on the classifications of their land and subsequently levying differing levels of payment from residents

Regional information site Andalusia.com claimed that a simple property in a rural area of Spain could be liable for as little as €50 (£35) IBI per year.

Americans visitors to Europe can often be awed by the impressive historical heritage nestling in every city, but USA Today reporters recently hitting Spain came back brimming with amazement at the country’s cuisine.

Valencia was hailed as one of the gastronomic gems of the trip, after the eating enthusiasts checked out the best in local specialities from one end of the country to the other.

The self-acclaimed ‘gastro-freaks’ setting out to find what fuelled Iberian appetites were single-minded in their approach: “We didn’t visit any museums or churches. We didn’t stroll around any parks or fountains. We didn’t write one postcard or buy one souvenir. We ate.”

The food samplers said that their Valencian adventure started with amazement at the 30,000 tomato-festival revellers in Bunol, but preferring a sit-down eating experience, the team embarked on a ten-course meal at a Michelin-rated restaurant.

Eating an array of Mediterranean specialities, the tasters claimed of the multiple courses: “Many of them sparkled with brilliant colours like the pumpkin with creamy foie gras, beans and corn.”

Eating well in the region is no surprise, with Valencian paella already a well-known favourite dish for locals and visitors, combining rice, chicken, rabbit and greens, to the delight of those who like their food rich and typically Spanish.