Spain Property News

National Demand for Luxury Housing in Barcelona Exceeds Foreign Demand

National Demand for Luxury Housing in Barcelona Exceeds Foreign Demand

According to the luxury real estate company, Engel & Völkers, they have seen an optimistic start to 2015 in the luxury housing market, with the national demand for homes of high-standing growing more than foreign demand for the first time in years.

Joan Galo, Managing Director of the agency in Barcelona added that, as well as the rise in the national demand, “the foreign buyer is returning, attracted by the current good purchase prices in the city, and by the high returns that can be obtained”.

Between January and March, the company brokered real estate transactions in Barcelona with a value of 38.24 million euros, representing an increase of 47.8% over the 25.87 million euros of transactions registered in the same period of the previous year. A total of 92 sales transactions were closed, which is 24.3% more than in the first quarter of 2014, and 151 rental transactions (128.8% more than a year earlier). In total, 243 transactions were carried out, compared with 140 in the first quarter of 2014, representing an increase of 73.6%.

In general, according to Galo, the signs of the real estate market recovery in Spain are the stabilisation of prices, the increase in the flow of credit and the increase in supply of new builds, particularly in Barcelona, “because there have already been clear signs of recovery in the sector, such as the increase in the sales of properties throughout the city, as well as the stabilisation, and even increases, in property prices in areas like Eixample, Pedralbes, Sarrià-St. Gervasi, Les Corts, Ciutat Vella and Gracia, among others”. reported that, the average price per square metre in the Catalan capital is 3,259 euros, with great differences depending on the area. The highest prices are to be found in districts such as Sarrià-Sant Gervasi (5,400 euros per square metre), Les Corts (4,100 euros) and Eixample (4,000 euros), while the lowest prices are those recorded in Nous Barris (1,700 euros) and Sant Andreu (2,600 euros).