Barcelona Real Estate Market Report Q3-Q4 2012


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Price signals and levels of sales activity
in the second half of 2012 suggest that
2013 will see continued busy trading in
the Barcelona real estate market.

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Barcelona Real Estate Market Report Q3-Q4 2012

  1. 1. BARCELONA REAL ESTATE MARKET Q3 & Q4 2012 Informed buyers • A perceived bottoming out of residential property sales prices. snap up the best on offer. The second half of 2012 saw the developmentof Barcelona residen- of rental yields on Barcelona citytial property consider “In 2012, we saw a number of our investor clients who had been observing prime residential properties that are competitive internationally. Combinedthat the market has the market for the last few years with proposed changes to Spanish law starting to buy up discounted properties to provide residency permits to non-bottomed out in prime areas of Barcelona city. This EU property owners, we expect these demonstrates that informed buyers of factors to generate much more foreignAlex VaughanDirector and Co-Founder Barcelona residential property consider buyer interest in Barcelona in theLucas Fox that the market has bottomed out,” said coming year,” Vaughan said. Alex Vaughan, Lucas Fox Director.BARCELONA REAL ESTATE “We expect this trend to continue in PROPERTY TRANSACTIONSMARKET: SUMMARY 2013 and for property asking prices to fall in line with actual sales prices. As more A new wave of discounted propertiesPrice signals and levels of sales activity properties come to market from local coming onto the market helpedin the second half of 2012 suggest that owners and banks, foreign buyers will reactivate the Barcelona and Spanish2013 will see continued busy trading inthe Barcelona real estate market.2012 saw some big factors in theBarcelona real estate market:• A higher volume of property salestransactions building from the summermonths as confidence returned to the * Source: Ine.esmarket• Ongoing increases in foreignvisitors looking for short term rentalaccommodation throughout the year Urban Property Transfers (Sales of Free Housing Stock) – Barcelona and Spain: 2012 BARCELONA REAL ESTATE MARKET Q3 & Q4 2012
  2. 2. property markets in the second and BARCELONA PROPERTY Barcelona 2011 Barcelona 2012third quarters of 2012. Lucas Fox sold at SALES PRICES 4000least three times as many properties in 3500Q3 and Q4 of 2012 than in the previous 2012 may be the year that Barcelonatwelve months. property made its final moves towards 3000 a bottoming of market sales prices.According to the official figures property While the first half of 2013 may see 2500 some price adjustments, the increasedsales transactions were at the highest sales transactions in mid-2012 suggestvolume level in Q3 2012, peaking with 2000 that foreign buyers looking for the best Jan Mar May Jul Sept Nov ‘0002269 sales in July and staying above properties were not willing to wait Feb Apr Jun Aug Oct Dec2000 transactions each month of that any longer before taking advantage ofquarter. Despite some drop off in trading market the start of the fourth quarter, sales Barcelona Airport Arrivals (‘000): 2011 – 2012transactions began to climb again in Barcelona average property sales price Source: Aena.esOctober and November 2012 (the latest at the end of 2012 came in at €3,217 permonth for which data is currently square metre.available), with signs that the year wasending with increased sales activity. Pedralbes / Les Corts, continued its Barcelona 2011 Barcelona 2012This has been the experience at Lucas reign as the district with the highest 160Fox, where buyers have been keen to property prices, reflecting its exclusivecomplete sales transactions before the status as a high-end business, shopping 120end of the 2012 tax year. and leisure district, ending the year at €4,077 per square metre. 80 40 0 Jan Mar May Jul Sept Nov Feb Apr Jun Aug Oct Dec Foreign residents staying in holiday apartments in Catalonia (‘000): 2011 and 2012 / Source: The biggest price adjustments between the end of 2011 and the end of 2012 were in Eixample, Gracia and Sarria Sant-Gervasi, with these districts recording reductions on 2011 prices of €382, €523 and €534 per square metre Barcelona Property Average Sales Prices (Average and by District): 2010 – 2012 / Source: respectively. “In our opinion central Barcelona property prices reflect excellent value when compared with the prices of€ per m2 other European capitals” commented Lucas Fox Director and co-founder Stijn Teeuwen. “The lifestyle factors remain as compelling as ever and we are gradually reaching a point where Barcelona property can once again be classified as a very good medium term investment. It is clear that a further adjustment is required in some property asking prices to bring them in line with real sales prices but we expect this to happen Barcelona Rental Property Prices (Average and By District): 2010 - 2012 / Source: through 2013”. BARCELONA REAL ESTATE MARKET Q3 & Q4 2012
  3. 3. Foreign readers visiting Lucas Fox website pages for Barcelona properties Q2 & Q3 2012 Source: Lucas Fox Google Analytics dataBARCELONA RENTAL MARKET indicators help investors determine FOREIGN INVESTMENT the potential yield that can beBarcelona average rental prices generated from purchasing Barcelona Foreign residents invested heavily indropped by a fifth of a Euro in most apartments primarily for use as tourist Catalonian property (which includesdistricts in the second half of 2012, accommodation. Barcelona) in the first three quarters offalling from an average of €11.30 per 2012, accounting for 20.6% of all foreignsquare metre at the end of Q2 to an Catalonia (including Barcelona) real estate investment across Spain.average of €10.90 per square metre received the most foreign tourist visits In 2012, Lucas Fox facilitated foreignat year’s end. The districts of Horta in all of Spain, accounting for 25% of investmentGuinardó, Sant Andreu and Ciutat Vella all foreign tourist arrivals in 2012, and sales transactions totalling aroundheld steadiest during the second half increasing its international visitor €50 2012. Ciutat Vella ended the year numbers by 9.9% over 2011 figures,maintaining its mid-year average rental with close to 14.5 million foreign As in the first quarters of 2012, Q3price of €12.40 per square metre. visitor arrivals. and Q4 saw continuing high levels of demand from Swiss and Russian clients. Between March and October, Barcelona The other most important group wasA study by real estate portal Idealista continued to see monthly increases French clients, motivated by tax hikes- released in November 2012 - showed on airport arrivals compared with the in France. The remainder of the interestgross rental yields in Barcelona months in 2011. Overall, to the end of was split between traditional Northern(4.1%) are stronger than in the December 2012, airport arrivals were European client groups with increasingproperty markets of London (3.4%) 2.2% higher than in 2011. demand from emerging markets suchand Paris (3%). as China, India and Latin America. More foreign residents stayed inSHORT-TERM RENTAL DEMAND holiday apartments every month of 2012 visitor numbers to the Lucas 2012 than in comparative months Fox website increased significantlyBarcelona airport arrivals and the in 2011. While figures are for all of compared to 2011, with 35% morenumbers of foreign travellers staying in Catalonia, the majority of holiday visitors reviewing Barcelona propertiesholiday apartments are good indicators apartments are located in Barcelona on our webpages. The majority of ourof demand for short-term rental city. In Q3 2012, over 120,000 foreign international website visitors wereaccommodation in Barcelona. These residents stayed in holiday apartments from the UK, United States, France, each month. Russia and Germany. BARCELONA REAL ESTATE MARKET Q3 & Q4 2012
  4. 4. LUCAS FOX ANALYSIS international buyer interest in Barcelona The biggest potential game changer residential and commercial property. could be the proposal to grant residencyAND PREDICTIONS to non-EU buyers who invest in As in 2012, the main demand will be for residential property in Spain. If thisAll the evidence suggests that the prime properties in the best locations, expected law change is passed in earlypositive market developments that either in the city centre or along the 2013, we anticipate that it will generatewe saw in the last quarters of 2012 will coastline to the north and south of the huge demand from wealthy buyerscontinue into 2013. The combination of city. We expect there to be continuing located in Russia, India, Africa and Asia.increased confidence in the Eurozone demand for properties to renovate:and Spain, heavily discounted property with interest in apartments, houses andprices, improving rental yields, and the entire buildings, as buyers recogniseproposed changes to Spanish residency that very good opportunities exist tolaws look set to continue driving which they can add value. DESIGNER PENTHOUSE LUXURY APARTMENT HOUSE / VILLA LOCATION: BARCELONA » BARCELONA CITY » LOCATION: LOCATION: ZONA ALTA » SANT GERVASI » LA BODANOVA SPAIN » BARCELONA » EIXAMPLE » RIGHT SPAIN, BARCELONA » MARESME COAST LFS4179 1,895,000€ LFS4180 2,300,000€ LFS4182 2,325,000€ APARTMENT PENTHOUSE LUXURY APARTMENT LOCATION: LOCATION: LOCATION: SPAIN » BARCELONA » EIXAMPLE » RIGHT SPAIN » BARCELONA » EIXAMPLE » RIGHT SPAIN » BARCELONA » EIXAMPLE » RIGHT LFS4196 895,000€ LFS4190 525,000€ LFS3067 PRICE ON REQUESTABOUT THE LUCAS FOXMARKET REPORTSYou can keep receiving up-to-date For more informationmarket reports from the Lucas contact usFox International Properties team.Subscribe to future updates at ourwebsite or bookmark our blog for the Alex Vaughan Stijn Teeuwenlatest news on the Barcelona Director and Director and Co-Founder Co-Founderreal estate market. Lucas Fox Lucas Fox BARCELONA REAL ESTATE MARKET Q3 & Q4 2012