25 Apr Housing prices get closer to its limits in Barcelona
The prices of housing in Barcelona’s prime areas are pushing to reach the estimated maximum. Neighborhoods Eixample, east part of Diagonal Mar, Les Corts, Sant Gervasi, Born and Gótic have reached 80-90 % of the maximum. Average sales prices per square metre in these areas are above 6,000 euros per square metre and it’s estimated to reach their limits in two years.
There’s a huge division of prices in Barcelona. In the most expensive area; Diagonal Mar, prices reach up to 12,000 euros per square metre because of demand for property from foreigners who purchase most of the properties because they want modern bright apartment with a lot of space that can accommodate families. On average, Eixample Dreta is the most expensive area with prices ranging from 6,500-10,000 Euros per square meter and El Raval one of the cheaper areas has prices ranging between 4,250-5,250 Euros per square meter.
The sustained growth of rent in Barcelona since 2007, particularly in the old town (ciutat vella) has increased prices by 14%, keeping demand from property investors high. On average, it is 16 euros per square metre to rent an apartment in Ciutat Vella, making it the highest prices ever in the luxury segment in Barcelona.
However, the other districts of Barcelona have reached 50-60 % of their limits, so there’s a lot more room to grow in these areas and with the international demand remaining strong with 40 % of all property purchases along with the 60% of locals, the demand and price of properties is very unlikely to fall. This information is interesting for all the real estate companies working in Barcelona. Flats are almost impossible to find in Barceloneta for purchase, and rent is about 1000 euros for a small 32m2 area and it’s becoming more difficult to find place in the old town (ciutat vella) district where the demand is really high. These results are based on an analysis of the luxury real estate segments in Metropolitan areas of Catalunya.
Even though Barcelona’s position in the most attractive European cities has declined, the remain number 16 thanks to the good prospects of rent and an improvement of the economic situation of the country. The trend is expected to remain through 2017 as reported by the urban land institute and PwC.
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