08 April, 2021
WHY ARE REAL ESTATE PRICES IN BARCELONA 50% LOWER THAN IN OTHER BIG METROPOLITAN CITIES?
Changes are happening now. Spain is ready to recover from the crisis, which means now is the right time to invest in the Barcelona real estate market and buy a property for yourself.
Compared to other metropolitan cities in Europe, Barcelona’s property prices are much lower. One of the reasons why property prices are so low today are: salaries in the city are relatively lower and will not change in the near future. According to Tine Mathiassen from Casamona, Spanish and Barcelona property market is slowing down also because of the political uncertainty, new impulsive laws like rent control, anti-owner “Okupers law” and instability, especially in Catalonia. As Spain recovers from the COVID-19 crisis, this situation may change, with investors reacting accordingly and the market turning around.
Figure 1. House prices in Spain % change. Global Property Guide.
In the graph above (Fig.1) we can see how prices have changed over the last 20 years. The Spanish real estate market started to grow again in 2015, having fallen 36.3% between 2007 and Q1 2015. With the start of the COVID-19 pandemic, property prices started to fall in Q2 2020 (-2%), but in Q3 they rose again 1,11%.
On the other hand, the Scandinavian real estate market, which has been rising over the last 10 years, is still booming. Even a pandemic was not enough to stop property prices from going up. The price in Scandinavian market depends on people’s salaries, as they have a lot fewer foreigner investors than Spain has. For example, summerhouse prices have been rising 10-20% as people in the large cities are not traveling and choose to buy property on the spot. There is one rule that complicates the situation – a person who chooses to buy property in a Scandinavian country has to be declared in that particular place, otherwise it is impossible to hold the property which means it’s much easier to buy property in Spain than in Denmark.
Property prices in Paris, Stockholm & Copenhagen compared to Barcelona
To make it easier to understand the price differences between Barcelona and other metropolitan cities, we have prepared 4 examples of apartments with similar features for sale from Barcelona, Stockholm, Paris and Copenhagen. We tried to find 4 apartments in 4 different metropolitan cities to show you the difference in prices, taking into account that all apartments are close to the city center, with some luxury features, at least 2 bedrooms and have a view to the sea or city.
BARCELONA – A CITY LIKE NO OTHER
This marvelous three bedroom apartment of 117m2 is located in Diagonal Mar, only a stone’s throw from the authentic beach Bogatell. The apartment has three beautiful bedrooms and two modern and bright bathrooms. Community where the apartment is located offers you a rooftop pool, cozy lounge with view over the sea and city. Price for this apartment is only 488,000 €.
CITY OF LIGHT – PARIS
This apartment of 118m2 with 3 bedrooms & 1 bathroom located in the center of Paris costs 2,060,000 €. The apartment has a private terrace of 40m2 and elegant staircase that leads to the three bedrooms each with their own dressing room.
COPENHAGEN – CITY WITH OLD WORLD CHARM
This bright and spacious apartment of 137m2 is located on the 8th floor of the building above the surrounding newly built properties and it costs 1,747,000 €. The apartment has 4 bedrooms & 1 large bathroom. From both living rooms there is access to the large west-facing balcony with fantastic view over the city where you can enjoy the afternoon sun.
CITY OF CONTRACTS – STOCKHOLM
This apartment of 119m2 is located on the 15th floor with sweeping views of Stockholm. The apartment, with large windows and plenty of natural light, is bathed in sunshine from morning to evening. In this Scandinavian apartment, no matter in which room you are, you have access to a private balcony. The price for this apartment is around 1,839,000 €.
As Casamona sees here, buying an apartment in Barcelona with very similar features costs almost 4 times less than in the previously mentioned metropolitan cities. According to the statistics available in the Global Property Guide on price changes in the real estate market over the last 10 years, property prices in Spain have fallen by 11.59%, while in France they have risen by 14.06%, Denmark by 17.94% and Sweden by 62.06%.
As for the cost of rent, according to numbeo, the world’s largest cost of living database, we can see that rental prices in Paris are around 54% higher than in Barcelona, while in Stockholm they are 28% higher than Barcelona and in Copenhagen 36% higher.
Property market forecast in Spain – is the future bright for us?
Although property sales fell by 16.7% in 2020, a slow market recovery is expected in 2021. The Spanish real estate market has gone through a difficult year, but we haven’t lost hope. Despite the COVID-19 restrictions and its consequences, experts estimate that as early as summer 2021, we will see a significant increase in foreign home sales, which had dropped last year. Experts estimate that we will see real estate market prices in Spain and Barcelona stabilizing from the second half of 2022. Market recovery depends on many factors, but we remain optimistic. Given what experts are saying about the real estate market in Spain and Barcelona, we believe that NOW is the right time for you to invest and buy a new apartment, as it is very clear that the market will stabilize and grow again in the coming years. So why not invest now if you can?
Real estate prices for luxury apartments in Barcelona are more than 50% lower than in other metropolitan cities – so hurry up and invest your money in your future by buying an apartment in this beautiful city. We are confident that the Barcelona real estate market is about to change, and only for the better!
On our website you can find a variety of apartment offers that suits your needs: https://www.casamona.com/