June 2017 : Barcelona remains the most expensive city of Spain, with an average price of 4175€/sqmt, then comes San Sébastian 3912€/sqmt and Madrid 3047 €/sqmt et (source : idealista).
Between June 2016 and June 2017, the prices have increased by +20,4%, from 3533€/sqmt to 4253 €/sqmt demonstrating the strength of demand.
Price by SQMT in Barcelona city from March 2002 to June 2017 (source: idealista):
Prices are rising because Spain has emerged from the crisis, since 2015 economy growth is above 3%, the Spanish have recovered confidence in future and are now willing to invest in a new home or a property as investor to obtain rental income.
There is also the increasing demand from investors: the increase in sale prices was simultaneous with an increase in rents making Barcelona very attractive, the French became the first foreign investors in Barcelona in number of transaction.
While, the Spanish territory as a whole saw a slight increase of 4.7% over the same period.
If wee look at the volume of sale operations, the dynamic is also very strong in Barcelona with 14 565 Transactions in Q1 2017 and growth of + 27% compared to Q1 2016 (source: Ministerio de Fomento).
At the level of rental, prices followed the same growth trend between 2016 and 2017.
The average gross rental interest rate remains unchanged at around 5.4%, Barcelona being in the 28th place. (source: Raquel Diaz Guijarro, periodico CincoDias 10 07 2017)
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