Renewed optimism in the Spanish economy is driving the Barcelona property market forward full steam ahead.
In economic terms overall growth in the Spanish economy is expected to top 2016. Banco Bilbao Vizcaya Argentaria SA and Bankia SA say it will top last year’s reading and grow 3.3 percent in 2017.
If correct, that would be the fastest growth since 2007, before the housing market crashed and Spain tipped into recession. What does all of this mean for the Barcelona market and for anyone thinking of investing?
It’s a question that we get asked regularly at Locabarcelona by our international investor clients.
The answer of course is that any investment should not be based on a quick buck turnaround but viewed over a longer term. That said, the cost of borrowing in the Eurozone is still great value and rental yields are strong with the capital growth of residential property in Barcelona looking very promising as shown in the table below. (Source Idealista Bloomberg Calculations)
Barcelona has led the way in Spain’s property market rebound with home prices accelerating close to 19 percent in the first quarter to about 4,100 euros ($4,350) per square meter, data from Idealista SA, the nation’s biggest property website, showed. Barcelona beats Madrid with the Spanish capital going for about 2,900 euros per square meter.
Will it continue? Apartments in particular in the City districts of Barcelona still offer great value when compared to other major European destinations and the appetite and demand for rental property is ferocious. So, if you are buying an apartment with a view to renting the property out we don’t believe that you will struggle. Indeed we have a very high demand with long waiting lists of tenants keen on particular areas and apartment styles etc. Furthermore, tenants are looking for very different types of apartments, whether that is holiday rentals, short-term apartments or long-term flats in Barcelona.
At Locabarcelona we specialise in providing niche real estate advice and services to international investment clients wanting to enter the Barcelona market. Whether it’s advice and assistance on finding your property, buying your dream apartment, renting or managing the asset once acquired we can help.
If you are a citizen from outside the European Union who wants to make an investment in Spain and become a resident, you might be interested in applying for a Golden Visa.
We are a very experienced multi lingual team who love real estate!
