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2nd Q 2017 – Barcelona Property Market Overview

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Analysing Barcelona Property Market, helps us better adjust to the demand and advise our clients either to sell or buy, at the right price and at the right time. We are halfway through 2017. The team of LocaBarcelona thinks it is a good time to re-evaluate Barcelona’s Property Market movements and possible directions.

Is it still a profitable investment and who is buying? Is buying in Barcelona still a good deal?

 

In our article Why Invest in Barcelona our conclusion showed that the investments came from foreign countries in the majority. But today, we are witnessing a flip in Barcelona’s salient upturn.

10Y evolution
Barcelona vs Madrid (€/sq m2)
Barcelona property 10 Y overview barcelona property 2nd Q 2017 – Barcelona Property Market Overview Barcelona Property

Barcelona property 10 Y overview

 

Local investment Stimulating the Market

Throughout the worst years of the financial crunch, foreign investment in Barcelona real estate market climbed incrementally with foreigners accounting for 10 percent of real estate buyers.

These investors target properties as 2nd homes for their short stays in the Catalan capital, and convert them into tourist apartments or short-term rentals thus receiving quick returns on their investments. A clear indication that the local land market is also recovering as is doing the Spanish economy, headed by Catalonia.

Recent statistics show the importance of local investment. They demonstrate, that the district that has increased its value most noticeably is the Eixample where the price per square metre rose by a massive 19.4% throughout 2015.

Even though there’s a reasonable amount of foreign investment interacting, historically the Eixample was always home to young upwardly-mobile Barcelonians, whose spending power seems to have improved now that the financial crunch is anything of yesteryear.

Ciutat Vella, Barcelona’s second-best district in property terms shows an increase of 15.7%. Local investment answer remains incomplete. Gentrification is almost certainly accelerated by foreign buyers, who are seduced by the idea of owning property in Barcelona’s historical city centre.

 

… But Foreign Buyers Still Count!

The fact that foreign buyers still count is seen in the yearly price rises of the city middle districts of Ciutat Vella and the Eixample, that have increased by 8.0 and 8.2% respectively within the last 1-2 months.

This trend is set to last because it is in these two districts along with Gràcia that a large part of foreign investors are interested in buying.

Foreign buyers are investing in property and Barcelona has become a safer bet than the stock exchange. The benefits from rentals run from 4% to 9%, and can be far higher in the case of a luxury apartment.

 

barcelona property 2nd Q 2017 – Barcelona Property Market Overview Screen Shot 2017 07 03 at 16

Source: idealista

Barcelona could now benefit from the terrible 2007, where home prices in Barcelona fell significantly more than in cities, such as San Sebastian or even Madrid, but given its high international profile, the Catalan capital, can be just a superb investment whilst the economy begins to get again.

We will end this very positive note of Barcelona property market by encouraging you to visit our portfolio of apartments for rent, long or short-term. And if your heart beats at the sound of Barcelona already go straight to our beautiful display of properties available for sale.