Sale prices for residential properties in Barcelona rose by 14 percent overall in 2016. The number of property sales and new developments also increased. These are the findings of the Engel & Völkers “Market Report Barcelona 2017”. “Even though the level of construction has gone up, demand still significantly exceeds the availability of homes,” said Oriol Canal, Managing Director of the Engel & Völkers Market Center Barcelona.
Exclusive residential districts in the Zona Alta
The most exclusive residential areas in Barcelona can be found in the Zona Alta. Elegant 19th century charm is still in evidence today in the modernised palatial buildings which are typical for the districts Sarrià-Sant Gervasi, Pedralbes, Bonanova and Tres Torres. In the Zona Alta, both generous apartments and detached houses with gardens can be found. Properties measuring 200 square metres with garage space are very much in demand while new-build homes in prime locations can reach up to 12,000 euros per square metre.
Diagonal Mar: Modern living concepts
The former industrial zone of Diagonal Mar has become one of Barcelona’s most modern districts. High-end residential complexes, luxury hotels, conference and shopping centres, museums and its own beach plus good public transport connections to the city centre make this district a versatile location. 60 percent of buyers come from overseas. Families from Russia, France, Bulgaria, Argentina and the USA in particular are looking here for large, light and modern apartments with sea views. Such properties fetch up to 12,000 euros per square metre.
Eixample: High international demand for residential property
The Eixample district is primarily noted for the buildings designed by the Spanish artist Antoni Gaudí, such as the Casa Milà and Casa Batlló. There is high international demand for property in this district: Last year, prospective buyers from over 30 countries looked to buy a home here. Engel & Völkers is witnessing growing interest from clients from the Middle East and China. The most desirable properties are classic apartments in a “Finca Regia” style with high ceilings, large ornate windows and mosaic floors. In the centre of Eixample, prices per square metre have levelled off at up to 11,000 euros.
Growing demand for new property in Ciutat Vella
As in Eixample, the historic central district of Ciutat Vella is also experiencing strong demand from international buyers. Barcelona’s cathedral, the Liceo Theatre and the Picasso Museum are just some of the many attractions found in Ciutat Vella. Alongside the extensive range of cultural offerings, the proximity to the sea makes this district even more attractive. The property market is characterised by a high demand for new apartments. However, this sort of property is in very short supply. 64 percent of the clients come from overseas, while just 36 percent are local in origin. For premium properties the prices per square metre reach up to 5,800 euros.
Increasing number of new construction projects
As was the case in all large Spanish cities, Barcelona again saw a multitude of new building projects in 2016. One reason for this is the strong demand shown by national and international investors in new apartments. New developments and those that have been extensively renovated are a particularly lucrative source of rental income. Due to the limited space available, the central areas around Eixample, such as Les Corts, Sants, Gracia Nova and Guinardó, tend to focus on small renovation projects. In contrast, larger projects can be found in Badalona, Hospitalet de Llobregat and Cornellà. Since 2007 the prices for rental property in Barcelona have risen constantly and currently fetch average prices of up to 16 euros per square metre.
Outlook: Further price increases expected
Due to the current dynamics, Engel & Völkers expects to see further positive trends in the property market in Barcelona. The high demand from international and national buyers ensures increasing prices. “Barcelona is a region with a healthy economy and a very good infrastructure, which offers a high quality of life. We assume that this year prices for high-quality residential property in prime locations will rise by 9 percent over the previous year,” said Oriol Canal.
Further information about the residential property market in Barcelona can be found in the “Market Report Barcelona 2017” (from page 30): http://asp-es.secure-zone.net/v2/index.jsp?id=9441/14851/33530&lng=en