Do you want to buy or rent property in Barcelona?

Invest in Barcelona real estate

Barcelona is a great city for tourists, but it's often forgotten that it's a great city for business, too. It accounts for more than a quarter of Spain's total economy; it's a major centre for art, design, and architecture; it's a major finance centre, and at the same time, it's the hub of the Spanish publishing sector. It's also increasingly a tech centre, with the 22 tech hub being created in the district of Poblenou.

Barcelona is also a cosmopolitan city. Non-nationals make up a fifth of the population, and there are plenty of expat associations to make life easier - as well as free Catalan lessons if you want to take up the challenge. You'll also find many countries have consulates in Barcelona - it's seen as a capital city in all but name: France, the UK, US, and China are all represented, but so are Uruguay, Belize and Madagascar.

The downside for Barcelona, if you're relocating here, is that salaries are on the low side compared to, say, Paris or Berlin. That's particularly true in the tech sector. On the other hand salaries are 15% higher than elsewhere in Spain - and living costs are significantly lower than in Paris or London.

Big players with offices in Barcelona

Barcelona property market

As far as real estate is concerned, Barcelona has had a tricky few years. Prices grew fast in 2016-17 - for instance in 2016 alone, the average sale price went up 14.4% - but the independence referendum in October 2018 stalled the market completely. Sales volumes halved, and prices fell - in the prime Eixample district, by nearly 5% in a few months.

The market for property in Barcelona's central areas is driven by foreign investment. Some agents saw the Spanish golden visa making a huge impact, and say buyers using the scheme accounted for as much as 40% of their business. Obviously, if Catalonia were to leave Spain (and consquently, the EU), the status of residence permits acquired with such investment might be in question. More generally, foreign buyers account for up to a quarter of total property sales, whether acquired for investment or for residence.

Barcelona is geographically constricted - the sea and the mountains hold it tightly in their grip. That means you'll probably not see so much new build as renovation, with many old apartment blocks in areas like Eixample being gutted and the interiors refurbished to a high level of quality.

In prime locations, you can expect to pay EUR 6,000 to EUR 7,500 a square metre. That's actually quite reasonable if you compare Barcelona to major European cities like London (EUR 30,000 a square metre) or Paris (EUR 16,000). Outside the prime areas, prices are lower - the city average is EUR 4,200, though that also includes some areas like Nou Barris where you probably wouldn't want to live.

Barcelona can deliver for investors as well as residents. With almost 20,000 AirBNB rentals in Barcelona, tourism creates huge demand for short-term rentals, while longer term rents can deliver a 4-5% yield.

Barcelona lifestyle and places

Eixample, with its broad boulevards, large apartment blocks, and leafy gardens, is the prime area. You'll pay around EUR 400,000 for a one-bedroom apartment in a period block here, and prices rise steeply up to as much as EUR 10m for massive four or five bedroom apartments.

Ciutat Vella, the old town area, is popular with foreign buyers. You're right at the old heart of the city here, with the Born market, the cathedral area, and numerous small boutiques and hotels. It's a great place for investors who want to rent a place out; yields here are the highest in Barcelona, particularly on smaller flats, and the location sees high tourist demand, too.

The district of Gracia is further out, and has a nice arty small-town atmosphere. It's great for families, with some small houses available, though most of the properties on sale are apartments. If you want to get away from the tourists, Gracia is your best bet - except around Parc Guell, of course. Prices are a bit lower than in the centre, but good properties sell quickly. The really wealthy might consider Pedralbes, nestled in the foothills, and full of leafy streets and spacious villas. EUR 4m could get you a four bed villa here.

Les Corts, to the west of the centre, is the city's business hub, but also offers upscale apartments in quiet residential areas, together with good transport links and excellent shopping. Les Corts is a great choice if you're going to be working in Barcelona.

Barcelona has a great lifestyle, too. There are plenty of great bars and restaurants, not all of them for tourists - there's even a flourishing micro-brewery scene. Groceries are cheap, and you'll always have access to fresh fruit, vegetables and meat through the many markets; again, though La Boqueria gets crowded with tourists, you can find a neighbourhood market with only two old Catalan ladies and a local schoolteacher in the queue ahead of you. Cultural life includes many theatres and concert venues, together with the celebrated Liceu opera house; and of course Barcelona's marvellous architecture and town planning are there to delight you every single day.