08 January, 2020
News: Real Estate in Barcelona and Spain – January 2020
Any experienced realtor can tell you that the key to dealing with a developing real estate market is to be well informed. Without proper information, you simply cannot know whether or not you are making a wise decision, be it selling a home or buying one. So, what is the real estate market in Barcelona like and how does it connect to the general real estate trends in Spain? Well, to better understand this complicated question, let’s take a closer look.
Real Estate Market in Barcelona
The easiest way to describe the real estate market in Barcelona is that it is slowing down. Don’t get us wrong, the number of sold homes is increasing. But, while the sales market has been at a steady increase in the past five years, it is expected to slow down in the following years. This is due to the fact that a big part of Barcelona’s real estate market is fueled by foreign investors. And if there is one thing that draws in foreign investors, it’s stability. People that buy homes in a different country like to believe that their homes and their value will not fluctuate much in the years to come. But, since there is a political struggle in Barcelona with Catalonian separatists, this is increasingly hard to expect.
So, what will it cost you to live in Barcelona? Well, it depends on the type of your home and the neighborhood you choose to buy it in. There are some modern homes that will cost a bit more. But, they should save you some money in the long run, due to modern materials and building technologies. Overall, if you plan on dealing with real estate, here is what to expect:
- 1 Bedroom Apartment in more expensive neighborhoods: 948 €.
- 3 Bedroom Apartment in more expensive neighborhoods: 1,520 €.
- 1 Bedroom Apartment in less expensive neighborhoods: 729 €.
- 3 Bedroom Apartment in less expensive neighborhoods: 1090 €.
Most of the people that are purchasing homes in Barcelona are going for apartments. After all, Barcelona is a crowded city. So it should come as no surprise that most of its inhabitants live in 3 – 8 story buildings. A decent apartment will cost around 150,000€, while luxury ones go as high as 2 million euros. Outside the city, the picture is a bit different. You can get a decent place to live for about 62,000€. But, even outside cities, you can find luxury villas for as much as 10 million euros.
Should you buy or rent
So, with all this in mind, the question remains should you buy or rent. Well, deciding between these two is never easy. After all, there are numerous factors to take into consideration and both options have their pros and cons. But, our advice is to only buy a home here if you plan on spending at least a month every year in it. Otherwise, you are much better off renting short term or even getting a hotel room. Dealing with the real estate market in Barcelona properly takes time, attentiveness and the ability to respond quickly. All of which are not something you can afford unless you reside there permanently.
Also, if you do plan on getting a house, don’t focus on the city center. Even with its infrastructure troubles, Barcelona has a decent public transport system. So, you will be able to enjoy all the amenities of this beautiful city without having to pay more money for a worse apartment.
Tips for dealing with real estate in Spain
In order to deal with real estate in Spain properly, we are going to give you a couple of tips. That way you will avoid certain unpleasant surprises that a lot of uninformed foreigners find themselves facing.
Dealing with taxes
Once you purchase a home in Spain, know that you will have to add an extra 11% to the original price. This money goes to various taxes and notary fees. Furthermore, if you plan on selling your home quickly after buying it, know that you will have to pay a 20% tax on capital gains. This is if you do not buy property in the next two years.
For most of Spain, it is the seller who is expected to pay for realtor fees. But, in places like Valencia and Technocasa, the buyer is expected to pay a certain percent. So, be wary. Keep in mind that there is a lot of shady activity when it comes to dealing with real estate in Spain. So, you’d be smart to get as much information about the nature of dealings before you get into it. We suggest advising with realtors and lawyers to get the true idea of what is expected of you.
Knowing the neighborhood
Most neighborhoods in Spain can be quite beautiful during the day. Calm, modern, almost idyllic. But, to get the true idea of what the neighborhood is like, we suggest that you talk with the locals and visit it during the night. Even though an area might seem fashionable, it can be overrun with bad people during the night. So, when leaving one country and moving to another one, do yourself a favor and study the neighborhood carefully before you commit yourself to buying a home there.
Holiday homes in Spain
Unless you are really keen on living in Barcelona, we wouldn’t actually advise you to get a home there. True, there is no city in Spain that is as interesting has as many opportunities as the capital of the Catalonia region. But, if you are simply looking for a decent place to get a holiday home, you’d be much better off finding smaller places and getting one there. You can always visit Barcelona and have a great time. There are some truly gorgeous cities and villages in Spain where you can get a beautiful holiday home for only a fraction of what you would have for one in Barcelona.
James Ellis is a blogger who mostly focuses on topics such as real estate and housing trends around the world. His experience in the area has helped him gain insight into the fluctuating market, and many people have turned to him for advice over the years. When he is not working, he enjoys sports such as basketball and soccer, as well as playing with his two sons.