Nowadays, Barcelona is one of the most popular destinations for real estate investments. Since the crisis hit Spain harder than the rest of Europe, the selling prices of old apartments have lost up to 40% of their value. However, if you want to invest in Barcelona, hurry! The country is starting to recover, its economy is getting healthier, and the prices are beginning to stabilize or even rise.
Since 2015, the m² price are stabilizing in Costa Brava, and the luxury villas prices started to rise. Despite this significant change in the average price of an apartment in the Barcelona area, it is still three times cheaper than in Paris.
French investments in Spain
Spain is particularly attractive in terms of real estate investments thanks to its climate and its strategic position. The cost of living in Spain is relatively lower than in France. However, it depends on the region you live in: Barcelona and Madrid are obviously the most expensive cities to live in.
The French are particularly keen on investing in Spain and especially in family homes, whose average cost is 40% less than in France. The crisis has made many foreign companies invest in Spain. France represents 10% of this investment in 2013 [i] (52% more than the previous year). This sudden interest is probably due to the fear of the prices rising again.
Related article : Why buy real estate in Barcelona
Rental yield in Barcelona
Barcelona is an extremely attractive city for new residents, professionals, students. They are looking for either long or short terms rentals, this is why the market is extremely competitive. If you are not living on the Iberian Peninsula, it is wise to use an agency. Feel free to contact our ShBarcelona team: they will advise you about the terms and conditions.
Is the Barcelona real estate pickup happening?
On average, property prices have lost 30% of their value from 2008 to 2013 because of the economic crisis (50% in some areas). Spanish banks still have in their possession thousand of homes. BBVA, Caixa and Sabadell have sold more than 53,000 of them in 2014: an increase of 50% compared to 2013ⁱⁱ. There is still a huge number of unfinished and unsold property projects in Spain. The property market is not yet back on track, but the luxury market is getting steady. If buyers have the means to invest in this sector, it is a good sign for the anticipated general increase in prices in real estate.
Catalonia is the third Spanish region in terms of price per square meter. Barcelona is one of the most expensive provinces in the country, behind Gipuzkoa and Vizcaya and Madrid ⁱⁱⁱⁱ. Indeed, the average price per square meter in the area of Barcelona in February 2015 was € 2313 [iii] (8000 € in Paris) compared to an average of € 1,627 in Spain.
The figures have increased relatively in 2015 in the Catalan capital, reaching € 3,512 / m2. This is an omen for a significant global increase in the long term. In what regards renting, the most expensive neighborhoods of the Catalan capital are located in the city center and next to the beaches: Eixample, Ciutat Vella, Sant Martí. In Sarria-Sant Gervasi, Gracia, Les Corts, Sants-Montjuic, people purchase family residences.
Related articles : Barcelona’s best neighborhoods to live in
The most expensive areas to buy properties in Barcelonaⁱⁱ ⁱⁱⁱⁱ ⁱⁱ
|1. Sarrià – Sant Gervasi||4.338|
|2. Les Corts||4.205|
|4. Ciutat Vella||3.410|
|5. Sant Martí||3.174|
|7. Sants – Montjuïc||2.558|
|8. Sant Andreu||2.393|
The most expensive areas to rent flats in Barcelona ⁱⁱ ⁱⁱⁱⁱ ⁱⁱ
|Neighborhoods||€/m2 al mes|
|1. Ciutat Vella||13,49|
|2. Sarrià – Sant Gervasi||13,07|
|4. Les Corts||12,02|
|5. Sant Martí||11,33|
2015 announced “the beginning of a moderate recovery,” according to BBVA. In addition to a gradual stabilization of prices, there was an increase in building permits + 30.2%, and sales + 13.7% in Spain in 2014 according to the INE (Instituto Nacional de Estadística).
Spain is currently one of the cheapest countries in Europe. Barcelona and Madrid are the most profitable locations for a rental investment. ShBarcelona and ShMadrid offer many accommodations that you might like to invest in, to come and to live in one of the most popular cities in Spain. Barcelona is on the rise, enjoys magnificent panoramas, sunny beaches and an innovative business district.
ⁱ Information extracted from the article 07/10/14 “Investing in real estate in 2015: Spain still seduces French! “- Website real estate 2015
ⁱⁱ ⁱⁱ Data from the article of 02/16/15 “Spain: real estate restarts very strong! “- Real-finance-management blog
ⁱⁱ ⁱⁱⁱⁱ ⁱⁱ data edited by real estate portal Fotocasa