Thinking of investing in real estate in Barcelona?

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If you have savings and want to earn a return, you may have considered various options: buying shares, buying a flat, or entering the cryptocurrency market. We are in a situation where there is uncertainty due to the war in Ukraine, inflation and the energy crisis, however, Spain is in a strong position, in part, thanks to its real estate market. In fact, housing has become a safe haven for many investors. In this post we tell you why it is interesting to invest in real estate in Barcelona and what you should consider to do it correctly.

Why invest in real estate in Barcelona?

Currently, there are several circumstances that make it interesting to invest in real estate in Barcelona:

– The stock market in times of war is characterised by high volatility, so unless you are very knowledgeable and know how to take big risks, it is more advisable to look for other investment options such as buying homes or other real estate.

– Investors see an opportunity in the current residential market due to the imminent rise in prices and mortgage interest rates. Buying a flat in Barcelona in the immediate future will be more expensive due to the increase in the price of money and housing prices (as, for example, inflation increases the price of materials for construction and renovation of flats), so now is the time to buy homes in Barcelona.

– Investing in housing in Barcelona is relatively easier than in other assets, as savers can count on the help of expert real estate consultants in the city to study the case and propose the best alternatives.

– According to various statistics, Barcelona is one of the most visited cities in Europe, due to its attractions such as the Sagrada Familia, Las Ramblas or the beaches, both inside and outside the city. It also has excellent national and international communications with the Josep Tarradellas-El Prat airport and the AVE high-speed train station.

– The profitability obtained when buying a property to rent in Barcelona, according to idealista.com, reached 5.2% in the third quarter of 2022. This percentage can increase or decrease depending on the neighbourhood in which the investment is made.

– Barcelona has become one of the cities that attracts the most entrepreneurs. According to data published by El Nacional, the Global Entrepreneurship Monitor (GEM) Report, Catalonia remains the autonomous community with an entrepreneurial activity rate of 7.2%, 0.6% above the previous year.

What should you bear in mind when investing in real estate in Barcelona?

Investing in property in Barcelona requires planning and knowledge of a series of elements that will have a significant impact on the investment. We tell you what you should bear in mind below:

Analyse the characteristics of the property

Some of the aspects you should consider when investing in real estate in Barcelona are the following:

– Location. It is not the same if you are a young professional or a family. For example, among the best areas or neighbourhoods for families in Barcelona are Les Corts, La Maternitat i Sant Ramon and Pedralbes. In general, families look for nearby schools, good communications, public transport, quiet areas and parks and gardens. If you are a young professional you will look for neighbourhoods where there are other professionals like you, bars, restaurants, leisure facilities and good internet connections. For example, L”Eixample, Poble Sec or Sant Marti-El Poblenou are good options.

– Characteristics of the property. In this sense, it is necessary to analyse aspects such as the surface area, the state of the property, the services available in the building (doorman, swimming pool, gym, gardens, etc.), the orientation and the energy rating (especially considering the increase in the price of electricity), among others. For example, if you are buying to rent, you can choose a property that adapts to various types of demand: students, families or tourists, among others.

– Communications and transport. Another essential aspect when investing in property in Barcelona is the proximity to train and metro stations, as well as bus stops. Access to the city’s main communication routes is also important.

Consider the expenses and taxes you will have to pay.

To invest in real estate in Barcelona you need to know the total price of the investment. It is not enough to calculate the price of the flat, but it is also necessary to take into account taxes such as VAT or ITP and expenses such as those related to the fees of the notary, the land registry or the agency involved in the sale.

Choose your investment strategy when investing in property in Barcelona

There are several different investment strategies in relation to property in Barcelona, which are as follows:

– Buying a property in Barcelona to live in. This is an investment in which you can obtain a long-term return when the property is sold again.

– Buying a property in Barcelona to rent. This is the most common way of investing in order to obtain a return. If you want to make a profit you should consider aspects such as the situation of the rental market.

– Buying a property to renovate and sell. In this case, it is about looking for a flat that is in poor condition, to be able to acquire it at a lower price and, subsequently, to carry out a reform so that the flat is revalued. In this way, when you put it back on the market, you will be able to obtain a return. However, it is important to analyse the case carefully, to avoid the renovation having a very high cost and not obtaining a return. There is also the possibility of buying the flat, refurbishing it and renting it out, either on the long-term residential rental market or on the tourist rental market.

Calculate the profitability

If you are going to buy a flat as an investment you should calculate the return you can get. It is not just a question of considering the price and the costs of the sale and purchase, but you should also analyse the maintenance costs of the flat, the ordinary and extraordinary community costs, the necessary refurbishment work, insurance or taxes such as IBI or the rubbish tax.

Another element that will affect the profitability if you buy to rent is the solvency of the tenants you choose. It is possible to avoid defaulting tenants by taking measures before signing the rental contract, such as requiring guarantees and studying the financial situation of the potential tenant.

Seek help from expert real estate consultants

The help of expert real estate consultants is essential when investing in real estate in Barcelona. These should be companies with extensive knowledge of the residential sector in Barcelona and the trends that may affect it in the future. In this way, you will be able to invest your money in a secure asset such as a flat or get the best return if you buy to rent.

In short, investing in real estate in Barcelona is a good option whether you are looking for a flat to live in or if you want to buy and rent. You will simply have to plan the operation, make all the calculations correctly and count on the help of an expert real estate consultancy in Barcelona with experience in residential investment operations.

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Habitability in Barcelona

Ana Vila

Ana Vila

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