24 november, 2021
Now is the perfect time to invest in Real Estate in Barcelona
Why is now the perfect time to invest in Real Estate in Barcelona?
For almost two years the pandemic has left us all living amongst complete uncertainty – markets and businesses all around the world have suffered extreme volatility, and now we are on our way up, everyone is hopeful for some financial stability.
So is now the time to invest, or is the risk still too high?
The Real Estate market in Barcelona is exceptional when compared to other countries around the world: for example, while housing prices have seen a sharp spike in the UK throughout the pandemic (13.4%), Barcelona recorded an annual decrease of 2.7% for the past year – for the first time in 5 years.
Real Estate experts believe that the pandemic has paved the road to a prosperous future in Barcelona’s housing market. Portals like idealista and banks, for example Caixa, support that impression. Anna Puigddevall, treasurer of one of the most important International Real Estate Federations (FIABCI España) and director of the Catalonian Real Estate Agent Association, predicts that 2022 will be the same as before the pandemic, or even better.
So here are a few reasons why Barcelona’s housing market can be a great investment opportunity now:
High savings – ready to spend
With restrictions coming to an end and life gradually returning to normal, individuals are seeking investment opportunities – as a result financial injections are finding their way back to pre-pandemic rates. This, combined with a shortage of quality properties, assures a strong housing market in the future.
An increase in domestic and international buyers is helping stabilize Spain’s economy. Banks and institutions in Spain predict a rise in GDP of 6% this coming year, providing you with the security of your investment. At Casamona International we have seen this influx of buyer-agent investors first hand. According to Tine Mathiassen CEO, “more than 50 % of business in October was in the Sales sector”.
It doesn’t just end here though. According to Caixa Bank, Barcelona’s prices are still 22% lower than their all time high. So if you buy now there is a good chance you will pay less and the price of your house will only go up.
Why now and not later
In January 2022 a new law will be put in place throughout Spain to combat tax issues and fraud. For buyers, this means an AJD (mortgage) tax will have to be paid when purchasing new construction properties and an ITP (Property Transfer) tax for resale properties. This, of course, is making the buying process a lot more expensive. The price of this tax doesn’t take into account the state of the property – so whether it’s newly refurbished or extremely run down, it will be determined by the land registry office.
For this reason, it is a smart decision to invest right now – and not wait until the year has passed.
Why Barcelona wins
Barcelona will continue to be a sought-after city. With Covid-19, many people have reconsidered their priorities and preferences. Better standards of living, especially with regards to a home, have become a more important goal. Nice weather, lots of sun, a lively and easy-going atmosphere, are all assets that Barcelona offers.
The prices in Barcelona are much lower than in other metropolitan cities and unlike other regions, housing has not become more expensive with the pandemic. In Scandinavia, for example, prices went up between 5 and 16% since 2019.
The topic of mobility is opening up more and more. With significantly cheaper costs of living than in other big cities, Barcelona has become the preferred base, particularly for remote workers.
When we consider all of the above, real estate in Barcelona provides a great investment opportunity. Cheaper now than it will ever be and prosperous figures for the future, if you were waiting for a reason before, no need anymore, go ahead and buy that dream home!
Go to www.casamona.com for great investments deals and many properties for sale!