Barcelona remains a popular investment destination for the following reasons:
- Favorable situation in the city real estate market is an important factor in Barcelona’s attractiveness in terms of investments. According to Forbes.ru, the real estate prices in Barcelona reached their minimum in 2013, with the gradual decrease reported over 6 years. Nowadays, the real estate prices evidence a steady growth trend.
- High level of business activities
- Low mortgage interest rates (with negative values reported in 2016 as 0.018%)
- Barcelona is one of the most popular tourist destinations
- Excess demand over supply on the real estate market
Investment options in Barcelona
The real estate sector accounts for one third of all foreign investments forwarded to the city. In order to successfully invest in Barcelona property, it is of crucial importance to choose the most promising object for investment. The most popular option is to purchase a residential property for the purpose of creating tourist rentals. Properties that boast central or coastal locations tend to garner the greatest benefits.
A new tendency among European and American investors is to purchase old buildings that require rehabilitation at a lower price, make repairs, and subsequently resell or rent the renovated properties. Because few new buildings are being constructed in the capital of Catalonia, this trade operation can be a real bargain.
Investment in the commercial property of Barcelona presupposes the investment of funds into office and commercial spaces, parking lots, and hotels. However, only large companies and corporations can afford to make this type of investment.
Investments in Barcelona: foreign funds
An analysis of the changes to the list of the five major countries whose residents invest in Barcelona shows that while Holland and France were the leaders in 2015, today, Great Britain and the USA claim the leadership positions as the greatest investors. Despite the exit of the English from the European Union in the summer of 2016, their interest in doing business in Catalonia continues to increase. This trend can be explained by low prices (for instance, office rent in Barcelona, on average, is 7.5 times cheaper than that in London) and high business activity in the center of Catalonia.
For Americans, the change in exchange rates has caused an increase in their investment volumes. The expected parity of the euro and the dollar makes investment in Barcelona a very attractive deal for Americans.
Economy in Spain and Investments in Barcelona
For the duration of the previous year, the Spanish economy demonstrated one of the most rapid growth rates in the E.U. (with the GDP around 2.8 % in 2016). The decrease of unemployment rates, the real estate demand, and the low interest rates are returning foreign investments to Barcelona and Madrid, as well as to the other major cities of the country. Furthermore, this tendency is not a short-term phenomenon: experts claim that within the next five years the investment activity in Catalonia, given the positive economic dynamics, will continue to intensify.
The managers of INEEDSpain company are ready to consult with you on all issues related to making investments in Barcelona. In order to schedule a detailed initial consultation, call us during our working hours on the phone numbers indicated on the main page of the website.