apartment in Barcelona

In my last post regarding real-estate investment in Barcelona in buy to let apartments, I mentioned the advantages of buying apartment in Barcelona for this purpose. I have explained that the rental properties market in Barcelona is very dynamic and that the expected returns over your property investment is quite attractive. In this post I would like to develop a little more this line of explanation because I have many friends and clients who are keeping asking me about the expected returns for their investment.

I general lines I can say that the expected return from a residential property located in the centre of Barcelona (that means Eixample, Old city, Gracia, Poblesec, Poblenou, La Via Olimpica…) is between 4% and 8% depending the different factors, basically related with the property management.

During the last years we have promoted apartments for sale in Barcelona that were fitted to be used as short term rental apartments. These properties in Barcelona enjoyed an average annual return rate of about 8%, between years 2002 and 2007.  As from 2008, the offer of properties managed as holiday apartments has increased significantly and the returns has decreased to about 5%. However it is important to mention that these kind of properties are generating an income that is not steady. Some months the revenue is high and other months in drops down (in correlation with the tourism high and low seasons). Also some years are stronger in terms of tourism, which affects directly on the holiday apartments rentals but other years can be slower. This year I think we can expect a return rate from a holiday apartment in Barcelona of about 5%, very similar to the average returns from long term rent in residential properties in Barcelona. I believe that this tendency will continue also in 2011 and 2012. However we believe that toward 2013 market will come back to grow and returns will increase sharply.

This is why I think now, during 2010 is the best time to invest in the real estate market in Barcelona. We to remember that the crisis in the sector is not affecting so much Barcelona and Madrid (as well as other major cities in Spain) as it is affecting the outskirts of the major cities and the rural parts of Spain. Price  of properties in Barcelona and Madrid went down around 10% only while in the cost and rural areas they have decreased by more than 20%.

This week a client of mine has purchased an apartment in Barcelona of 70 m2 + 20 m2 of terrace, located in the old city of Barcelona, 1 minute walk to Las Ramblas. The apartment need some renovation works (about 30,000€). He paid for the apartment 180,000€. The total investment would reach 220,000€ and he can expect a monthly income of 1,200€. That represents a return before taxes of  6.5% a years, not counting the increase of Value of the property (as a result of the renovations and future market recovery). It is not easy to find such an attractive investments but it is possible.

In my next post I will explain some more about the legal aspects of real-estate investments in Barcelona and in Spain in general.

For more information about real estate investment in Barcelona you can read in www.homesearchbarcelona.com

barcelona restaurants

One of the best places to pass the new year eve is Barcelona. There is a huge amount of places that offers parties and special program for the new eve night. The atmosphere in Barcelona this magical evening is very special and many locals go out to the streets, especially in the old city to celebrate together this moment. If you want to visit Barcelona in special dates these would be the perfect dates to experience this lovely city. It is not too cold in Barcelona and the bars and restaurants are completely full. There is also huge amount of foreigners coming to Barcelona on these dates so thr Fiesta will be at its best.

If ypou need cheap accommodation in barcelona for these dates try www.apartime.com, they have great offer of apartments in Barcelona for short term rent.

Investing in propertie in Barcelona

In my last post regarding properties for sale in Barcelona I explained why it is good time invest in Barcelona real estate market. It is true that timing has a lot to do with making smart investments and many people made a lot of money just because they were in the right place in the right time. Is Spain timing was also determinant factor for those who bought properties during the mid to end of the  90’s. as I explained in the last post, we are about to experience a similar period of time that in retro perspective will be understood as right time to buy properties in Barcelona or in Spain in general.

However, in this post I wanted to explain why investing in properties in Barcelona is a good investment whether it is related or not to the wider economical situation. The main reason for buying a residential property in Barcelona as an investment would be in my opinion the attractiveness of Barcelona as a southern European city which offers a quality of a northern  European city. In Barcelona you can enjoy the climate and the great southern atmosphere and at the same time you have access to quality services and reach cultural environment. Different then Madrid, Barcelona has a beautiful beaches cost and it is near one of the most precious cost line known as the Costa Brava. The south of Spain has great climate but many foreigners find it too hot and with luck of quality. All that makes Barcelona to be one of the most demanded citied among foreigners (as well as locals) as their preferred residential place.

Another reason that is clearly an advantage in Barcelona as well as in other cities of Spain is the fact that most of the residents in this city are owners and not tenants. That creates a situation in which there aren’t many attractive properties for rent on the market. On the other hand, Barcelona is becoming more and more cosmopolitan and there is an increasing number of people who come to Barcelona for periods of time and that need an apartment for rent. Then means that practically there is no way that a rental property will be empty and everything in Barcelona is rented out, and for quite a good price. As an investor you may expect a return from your investment , from rent income, of about 5% annually.

Also the easy management of properties are an advantage for the home buyers in Barcelona. There are plenty of management companies that will be more than happy to manage your property, charging around 10% of the annual property income and you don’t have to worry about anything, they will take care of it all.

In my next post I will explain a little more about the management of properties in Barcelona.

www.homesearchbarcelona.com

Price of Spanish properties has been falling down, especially in costal areas where most of the buildign activities was aimed at foreigners. In the big cities prices did went down, between 20% and 30% but they falling has stopped. We know from experience that prices in high demand areas in the big cities of Spains are not likely to fall further as the demand for properties in the major cities of Spain, and especially in Madrid and in Barcelona is constantly high. This is why I think  this is the best time to invest in prime location properties in Bacrelona. I am talking about Barcelona because this is the market I know and where I work but I guess the same would be for Madrid.

I can’t remember in the last 10 years in which I dedicate to real estate better times to by residential and commercial properties. The offer hasn’t increase significantly but because of the crisis the demand is minor and suddenly we are able to find for our clients properties that are really a bargain!

Probably that won’t last much. As soon as the banks will start to finance again purchases and as soon as the world economy will start to recover we will see the demand for properties in Barcelona starting to rise and when this happens it is imposible to find bargains. Smart investors will take advantage of this exceptional timing and will by know a property. I did it and I recommend you to do it also.

YBM

homesearch Barcelona Manager.

Realestate in Barcelona

here are some pictures:

apartment in barcelona for rent