20 februar, 2023
Rental Prices Domination: Barcelona’s Competitive Edge in the EU
Rental prices rose by an average of 8.4% over the year 2022 in Spain with price increases sometimes exceeding the December 2022 inflation rate (5.6%).
Casamona is aimed at foreigners coming to Barcelona for 3-11 months to rent a furnished home in the center and heart of the city. We saw that our properties rose by a small margin compared to the local rental market. The rental prices for luxury properties have been fairly stable for the last 2-3 years although we expect an increase as we approach 2024 with the America’s Cup being held in Barcelona.
HOW ARE SPANISH RENTAL PRICES COMPARED TO FRANCE AND GERMANY?
Even though we expect an increase in Barcelona rental prices in the next few years, including for our luxury properties, the prices are still low if you compare them with France and Germany.
If you look at the statistics below they show that despite Spain and Barcelona seeing a rise in rental prices, Barcelona remains the best city to rent in as it is more affordable compared to other major European cities.
Paris’ rent per m2 is at 35.9€/m2, triple Spain’s 11.6€/m2, nearly double Barcelona’s 19.3€/m2 and substantially higher than Berlin’s 23.57€/m2.
fig 1 Rental prices per m2
This graph shows us that Spain’s rental prices are not as high when compared to the leading countries, France and Germany, who are buying and renting in Barcelona, with Spain’s monthly rental price at 11.6€/m2 compared to France’s 16€/m2.
WHY BARCELONA?
There are several reasons as to why people are desperate to live in Barcelona, each influencing the rise in rental prices.
LOCATION – Barcelona’s unique location allows for a cosmopolitan city to exist by the sea, with locals taking advantage of the holiday lifestyle and tropical summers without having to travel.
CULTURE – The architecture of Barcelona will never cease to amaze you, and with more than 80 museums you are faced with endless possibilities.
LIFESTYLE – Barcelona is known for being a food lover’s heaven, with restaurants and bars on every other street, you will truly be able to taste the world.
AFFORDABLE LIVING – To reiterate, compared to other European cities, Barcelona has relatively low rental prices and a low cost of living.
CAREER – Barcelona is a growing hub for tech and start-up companies, which we can see through a rise in digital nomad clients and coworking spaces.
TRANSPORT – The city also has a reliable public transport system, making it easy for you to explore the city and visit all 80 museums.
IT IS THE PERFECT TIME TO INVEST IN BARCELONA REAL ESTATE
Barcelona is still a “cheap” place to rent an apartment. These record rental rates prove the desirability and attractiveness of living in Spain, especially in Barcelona, and Casamona is expecting that these prices will continue to rise until the America’s Cup of 2024.
WHAT DOES THE AMERICA’S CUP MEAN FOR INVESTORS?
This prestigious event generates a lot of American media and attention with the 36th Cup of 2021 having a 50.000-strong crowd present at the race. This means that 50.000 people will be looking to find accommodation and short-term rental flats.
HOW WILL THE AMERICA’S CUP AFFECT THE PROPERTY MARKET?
Port Olímpic will be the base for some of the sailing teams. Therefore, investing in Barcelona, specifically La Vila Olímpica and El Poblenou, will allow you one and a half years to buy and renovate a flat, and then you will reap the benefits of the rising rental prices.
In addition to the immediate economic impact, the America’s Cup can also have longer-term benefits for the local economy, says Tine Mathiassen, CEO of Casamona. The increased exposure and publicity generated by this event will help to raise the profile of Barcelona as a tourist and business destination, attracting investment and creating new job opportunities in a variety of sectors.
“New” and wealthy potential buyers will come to Barcelona and experience how amazing the city is and see how low the real estate prices are compared to all other metropolitan cities in the EU.
Barcelona Port and Barceloneta Beach
HOW CAN CASAMONA HELP YOU?
If you are a foreigner, finding the right property in Spain to buy or rent might be a really complicated and overwhelming task. Casamona has been helping foreigners buy, sell, and rent properties in Spain since 2004 and is looking forward to helping you. Casamona will be at your side, researching the market, ensuring that you will find the perfect property, and negotiating the price for you whilst you can avoid any language barrier problems. In addition to our real estate and law expertise, we offer many services, like our Buyer Agent Service, to make your life easier.