Foreigners have become the largest market for luxury apartments in the Catalan Capital. 90% of flats worth over 1 million euros have been snatched up over the last 3 years by foreign investors.
The housing crisis that erupted in 2008 left the Barcelona market at a stand still. Even the most expensive neighbourhoods that were initially thought to be the most likely to succeed given their scarcity and inevitable demand were affected. According to statistics this type of property has reduced in price by between 25% and 40%. This significant reduction has acted as key incentive to drive foreign investors to the Barcelona market, bringing in some 300 million euros. It is clear that the typical investor buys with the intention to rent out, taking advantage of the attainable price points and the undeniable appeal of Barcelona’s high quality lifestyle.
In past years investors have predominantly been European, the biggest clients being from France, UK, Switzerland and Nordic countries. Recently however, due to the economic crisis and decrease in prices, this trend has changed considerably. Now the market has seen a surge of investors from Eastern Europe, the Americas and Asia including families looking to settle in a new environment or young entrepreneurs investing in the future. Given this outlook, prices are forecasted to rise yet again. What are you waiting for? Now is the time to invest.
22/10/14 Amrita Pal
Source: La Vanguardia