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House prices in premium areas of Barcelona hit the roof

The house price increases spread to the outskirts of the city, such as Vallès and Baix Llobregat 

Engel & Völkers has increased its market share by 18% in Barcelona, expanded its office space by 60%, and increased its number of estate agents as well as the properties in its portfolio by more than 30% 

Engel & Völkers returns to the 2018 BMP as a leading sponsor 

Barcelona, October 23rd, 2018. The price of property in the prime areas of Barcelona has reached sky high. The continuous upward race of the last four years together with the political uncertainty generated after the 1-O referendum have exhausted the increase margin in the most sought-after areas of Barcelona and as a result, the price increase has spread to peripheral areas, such as Vallès and Baix Llobregat, which are in high demand among the national buyer. 

"Premium areas always set the trend and contribute to the first price increases in the real estate market," explains Oriol Canal, CEO of Engel & Völkers in Barcelona. "When there is no more room to maneuver, the increase in prices shifts to neighbourhoods or municipalities on the outskirts of large cities," adds Canal. 

According to the data of the property sales that were brokered by Engel & Völkers in the first nine months of the year, the average price in Vallès Occidental has increased by 16% and reached 569,000 euros, while in Baix Llobregat it has grown by 8%, up to 475,000 euros. In both cases, the average period from when the property was put on the market until its actual sale ranges between seven and eight months. 

Buying and renting, but not at just any price

The Engel & Völkers' customer, both national and international, is still interested in buying and renting, but not at just any price. In the new-build category, there is a moderation in property sales with average prices that exceed 6,000 euros / sqm, while in the rental segment, this limit is between 1,500 and 2,000 euros per month.  

In homes with rental prices that exceed 2,000 euros per month, "we still have foreign demand in the traditional Zona Alta, mainly by families looking for tranquility in large apartments as well as in Eixample, where the profile is made up of couples, students or executives", explains Albert González, director of the rentals division at Engel & Völkers in Barcelona, commenting that "a decrease in foreign demand" has been noticed.  

"This drop in demand, together with a stable supply - even somewhat higher after many years of significant price increases - has eliminated the great imbalance between the high demand and the scarce supply that existed in previous years in the most prime areas, thus increasing the rental market's desirability", highlights González.  

This situation is very similar in the peripheral areas, where national families make up a good part of this segment of the market.  

"Before the 1-O referendum, we rented out enough properties in the region of 3,000 euros per month, especially to foreigners," says Oriol Canal, while "now we have increased the volume of intermediation in rentals and have rented out many more homes, albeit at prices of around 1,500 euros".  

Attending the 2018 BMP with a greater market share

It should be noted that, in the current context of slowdown in the Catalan real estate market, "Engel & Völkers has managed to navigate its way through the current situation and has managed to increase its market share by 18% in Barcelona", confirms Oriol Canal. In this process of expansion, the company has expanded its offices that are located in Ciudad Condal by 60% to 1,100 square metres, has increased the number of estate agents by 30%, and its portfolio of properties by 33%, which adds up to 400 estate agents and 4,000 homes, respectively.  

With this greater number of staff and properties, Engel & Völkers once again returns to the 22nd edition of Barcelona Meeting Point(BMP), which will take place from October 25th to 28th at number 8 Palacio of the Barcelona Fair, as the leading sponsor. The German real estate company will be present at stand CL-01, where investors and visitors will find a wide portfolio of homes for sale and rent in Barcelona and its surroundings.  
La Cerdanya and Andorra will also be protagonists of the event, where Engel & Völkers will present the divisions of Developments, focusing on promoting the new-builds, renovated buildings, and the commercial properties in the tertiary sector and will be offering a wide portfolio of commercial premises, offices, residential buildings and hotels.  

This article has been published in:

■ La Vanguardia

■ El Confidencial

■ Dirigentes

■ Idealista

■ Metrópoli Abierta

■ Qué!

■ Servimedia

■ Aldia

■ Bolsamanía

■ Vilaweb

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