22 Jun Why now’s the time for property investment in Barcelona
If you have ever considered property investment in Barcelona, now might be the time to take the plunge. With rental profits at an all time high, and the property market only looking to go up in value, there’s no time like the present. Despite last year’s referendum, people are still heading to Barcelona in droves, meaning that your investment is bound to pay off. Let’s look at the top reasons for property investment in Barcelona!
1. Rent prices are climbing
The recent unrest due to the Catalan referendum caused rent prices to go down. However, Barcelona continues to be a desirable place to live and work, drawing in many new renters. This means that rent is starting to show signs of climbing. Indeed, in the first trimester of 2018, even following the referendum, rental profits were up 8.2%. There is also more opportunity for long-term rental thanks to the crackdown on Airbnb. Short-term rentals are now much harder to find as Spain requires a tourist license for such apartments. Furthermore, rental prices are rising at a much faster rate than sales prices are.
2. Property prices
many people have been hesitant to property investment in the current political climate, this has meant that sales prices have not continued to increase at the expedited speed that was occurring pre-referendum. This makes now a perfect time to buy to be sure of return on investment. Currently, there is a 32% decrease in demand from international customers who typically invest in high value properties, making now a great time to nab exclusive properties. Furthermore, this slight property price slump will not last for long, with prices expected to rise by the end of 2018.
3. People are still coming
In recent years, Barcelona has become attractive to new businesses and startups wanting to make this city their home. Because of this, the expanding workforce are increasing demand for accommodation. Tech companies like Google are opening branches in Barcelona encouraging younger people to move to the city, guaranteeing a stable future for the city as they settle and make it their home. Moreover, the tourists are still coming as well. Spain is currently the 2nd most popular tourist destination and Barcelona is the most popular destination in Spain, guaranteeing a constant flow of tourists.
What does Tine Mathiassen, director of Casamona, have to say about the current situation?
‘The rental prices are going down, because airbnb is no longer legal. Less people are renting short-term and more are renting long-term. In our market, which includes foreigners and foreign students, many are choosing not to come to Barcelona and as such there has been a lot less demand than last year and the price has been pulled down, which then influences the sales prices.
However, it’s a good time to to buy because the situation is forcing sales prices down. Unfortunately, there doesn’t appear to be a short-term solution to the situation so it’s definitely an adjustment. On one hand, It’s good because rental market was too high. But for investors, it’s a great time to buy and rent out without renovating as the demand for lower budget rentals is much higher and wait for the market to get better which it most certainly will.’
Therefore, it could not be a better time for property investment in Barcelona. Prices to buy are the lowest we’ve seen in a long time, the rental market in still booming and foreign interest in this city is on the rise. If you’re looking to make a worthwhile property investment in Barcelona, don’t hesitate to contact Casamona! You can find a large array of properties for sale on casamona.com and feel free to give us a call to discuss any potential investment!