15 July, 2020
Young international professionals are now buying in Barcelona!
The young International professionals are buying now in Barcelona !
Who is buying apartments from Casamona in Barcelona now?
During the past year, Casamona Real Estate has witnessed a shift in the buyer and renter profiles in Barcelona. The typical profile used to be middle-age Scandinavian buyers looking for a summer house in Barcelona. Most of them purchased apartments located in the central and most touristic areas of the city such as Ciutat Vella, El Born, Gotico, Barceloneta, etc. They formed a big part of the high-rolling visitors able to spend large amounts of money on all types of services. They were coming with their family and friends, filling up the most expensive restaurants and bars, boosting Spanish economy. But these buyers are no longer interested in investing here which leave the place to younger international professionals.
These international professionals buyers are no longer here… Why?
This group is selling out now and buying in “safe” locations. Also many are buying “summerhouses” in their own countries!
So, who is buying in Barcelona now?
We see many young professionals working remotely buying new homes in Barcelona. These are international nomads, between 23-35 years old, who work from anywhere pulling salaries from better paid countries. They see Barcelona as a “cheap” place to buy an apartment compared to where they come from and buy properties because the mortgage is as low as the monthly rent, or even less with historically low interest rates. Moreover, they get a discount on the property transfer taxes (by law in Spain), and feel good about building equity. They buy smaller apartments with lots of light, balconies, terraces, or other outdoor amenities while being hardworking and pragmatic; they spend more time working than in the bars. The last 5 apartments we sold were to this group of buyers and they were from France, Italy, Denmark and USA.
Also investors are seeing this group of ” new” buyers” – We see projects with pool on the roof, a gym and a “bike” room. All features this group loves! Here is a link to one of these projects! https://www.casamona.com/es/en-venta/luxurious-2-bedroom-apartment-with-large-private-terrace-in-poble-sec/_id:221356/
Other buyers we see are wealthy international people who just would like “one more” apartment in “one more” city. They would like private terraces, a pool or something unique. They buy in the city, Diagonal Mar, or Eixample.
Catalan investors are buying up. They have less fear and have “contacts” if they get occupants and some know how to trick the system to avoid the social housing quota. They are looking for good deals with a m2 price for around 3.000 euros per m2 and have lots of cash to offer! Other investors keep the building under 600m2 and then avoid the social housing quota. Also a trend is to keep the prices low, and this way we are again hitting the young International professionals.
Will the older people move out of the city and the young International professionals come in?
In Casamona, we see the real estate market like a pendulum; many foreigners are leaving the market and prices are going down. Young International professionals are buying apartments in the centre of the city which makes the city even more metropolitan and international!
The local investors are also buying up and viewing Barcelona as one of the “cheapest” metropolitan property values in Europe compared to the cost in London, Paris and Copenhagen. So with a city by the sea with a cheap cost of living the prices should go up again. Slowly, but surely!