Barcelona, the capital of Catalunya, is home to a booming property market. Lucas Fox International Properties reports that it will be adding more than 1,000 new homes to its Barcelona New Developments portfolio throughout 2017, generating sales of up to €550 million. This is due to the growing demand for good quality homes in prime city areas, generating potential capital gains of up to 20% during the construction process.
The new homes are mainly located in the central areas of Eixample, Barcelona Old Town, up-and-coming Poble Nou and the beachfront, all districts particularly popular with overseas investors thanks to the accessibility to the city’s cultural and gastronomic attractions as well as the port and beaches.
In 2016, Lucas Fox sold just under €100 million of new homes in Barcelona with an average price of just over €900,000. During 2017, the company predicts an increase in the number of mid-priced homes coming onto the market due to the ongoing construction of larger developments offering smaller units.
“2016 was a pivotal year for Lucas Fox’s Barcelona New Development division” comments the company’s Head of New Developments, Joanna Papis “The rhythm of sales in 2017 is already nearly double that of last year as demand for new and newly renovated homes continues to grow, particularly from foreign buyers.
“The combination of rental yields of up to 5.5% and off-plan new development projects offering as much as 20% capital growth through the construction process, is increasingly attractive to international investors looking for an alternative to more traditional property investment locations and the financial markets.
“Not only are these homes perfect rental investments but they also attract non-EU buyers looking to take advantage of the Golden Visa residency scheme. Our prediction is that sales in these developments will continue to make up a high percentage of the mid-market transactions by foreign buyers,”
Just under half of all of Lucas Fox’s sales in 2016 in Barcelona were new or newly renovated homes. Seventy per cent of buyers were from overseas, the majority from Northern Europe. Forty four per cent purchased for investment reasons and 48% bought homes as a second residence.
One buyer who took advantage of Barcelona`s unique market conditions is Laila Ram, founder of the international travel website i-escape. She recently bought a 2-bedroom renovated home in Barcelona`s most sought-after district, Eixample Dret with the intention of dividing her time between the UK and the Catalan capital.
“Barcelona has got it all,” Ms Ram explains. “It feels small and friendly enough not to be overwhelming and yet is cosmopolitan and easy going. Buying a property abroad, in a city you don’t really know that well can seem rather daunting. For us, buying a newly renovated home removed all the problems and headaches of finding builders, sourcing materials and managing the renovation works. It is such a joy to be presented with the keys to a beautiful apartment where everything works and where you just need to think about furnishing it.”
Latest figures from Spain’s Institute of Statistics show that, during January, sales of all homes in Barcelona were up 36%, compared to January 2016, further enhancing Barcelona’s reputation as one of Europe’s top investment property hotspots.
For more details about Barcelona’s property scene, go to: www.lucasfox.com