SITUATION OF REAL ESTATE MARKET IN BARCELONA, SPAIN

 

The global real estate crisis hit Spain in near the beginning of  2007. In Barcelona, home prices pushed by as much as 40 % and sales didn’t pick up until 2014.

From 2014, there were a lot of international and institutional investors coming into Spain, and that really brought confidence back into the market. Only last year prices started going up vaguely, but they’re not yet close to recovery.

While prices in popular neighbourhoods such as the Eixample, Ciutat Vella and El Born, which are all popular with foreign home seekers, increased by 18 % last year, Barcelona is still a bargain compared with other large European cities, including London and Paris.

Refurbished apartments of about 100 square meters in the city centre can be had for about 5,000 Euros a square meter. An unrenovated apartment in the city centre could sell for as little as 2,500 Euros a square meter, while luxury penthouses or villas in prime areas could cost as much as 20,000 Euros a square meter.

A well-priced apartment or home can sell within a week.

Right now, there aren’t enough properties to meet the demand. There’s a pipeline of new projects coming that might help things in the next year or two.

A lot of the development is taking place near the beaches along the Mediterranean in the neighbourhood of El Poblenou.

The French have been the largest group of foreign homebuyers in Barcelona, followed by those from Italy, Britain, Russia, Morocco and Germany. Recently, Chinese homebuyers have been attracted by the Golden Visa program of 2013, which offers residency status to non-European Union citizens investing at least 500,000 Euros in a property.

 

 

[FROM NYTimes]

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