Why and how to invest in real estate in Barcelona?
13 October 2017
After the real estate crisis that affected all of Europe in 2008, foreign investors are again welcome in Spain. Barcelona is now one of the best cities if you want to invest in real estate outside France: prices stabilize, acquisition costs are interesting and the panorama of real estate in the Catalan capital reassures.
Thanks to a "floating" demand made up of temporary tenants such as students, rental demand is very strong in Barcelona. Investing in Barcelona in 2017 is an excellent long term strategic choice.
Why invest in Barcelona?
1. Barcelona, champion for quality of life for employees
According to the European Cities Monitor, Barcelona is the European city that offers the best quality of life for employees for the fourteenth consecutive year. With more than 2,400 hours of sunshine per year, 4 kilometers of seating, a modern public transport network and world-renowned tourist attractions, it is one of the most complete cities in Europe.
2. The sixth tourist city of Europe
According to the World Tourism Organization, Barcelona attracts 7.5 million visitors each year. This gives it the title of the first tourist city of Spain, and sixth tourist city of Europe. As regards the amount of expenditure and the number of visitors, the Mastercard Index of Global Destination Cities indicates that it is the fifth tourist city in the world.
3. A leading international airport
With 35 million passengers in 2014, Barcelona-El Prat is one of the top ten airports in Europe. The bulk of the traffic was recorded in July and August, with 3,837,605 passengers and 3,905,840 passengers respectively. In that year, the number of passengers on intercontinental flights increased by 11.2%.
Tips for investing in real estate
1. Investing in New
Good news, new housing prices are currently at the lowest in the Catalan capital. Admittedly the accommodation can easily reach the million euros in the popular areas of Paseo de Gracia and Eixample, prices drop in half to the historic Barrio Gotico or the old town Ciutat Vella. Using the Metatrader platform, compare investments related to the city of Barcelona.
2. Opt for room rental
On average, the yield of a real estate investment is 4 or 5% in Barcelona, with a real estate tax similar to France. Not very profitable. What is, on the other hand, is the long-term room rental which shows a profitability of 8-10% with taxation almost zero. What is it ? A kind of Spanish hostel for people wishing to live in the center of the city while paying a low rent. This is a type of investment that is not subject to downward rent fluctuations, and may even increase in the event of a crisis.
3. Consult a professional
It is strongly advised to consult a lawyer specializing in real estate before buying anything. An independent, bilingual French lawyer who is fully trained in civil liability will help you make the most of your investment.