Barcelona Property Conclusion

January 2008: Please note this section is now out of date. The property market in Barcelona has gone cold, and asking prices are falling, in some cases by as much as 20%. I expect them to continue falling for at least the next 12 months.

Real estate prices in Barcelona have reached levels that I find difficult to believe. However, if foreigners with northern-European budgets continue to buy in Barcelona, the prices in the most popular central districts could continuing rising.

Having said that, I believe that property prices in Barcelona are likely to stagnate or fall over the next few years. Unless incomes rise dramatically (unlikely), I do not see how locals will be able afford to pay more for property with interest rates are on the rise.

If Spain goes into a recession, which is unlikely but possible, then the chances are that real estate prices in Barcelona will fall significantly.

But over a 10-year timeframe I believe that capital appreciation on property in Barcelona will be reasonable, when taking into account a relatively low level of risk. Barcelona's strengths as reviewed at the beginning of this guide will continue to hold true and I believe this will attract increasing numbers of buyers from all over Europe. At the same time Barcelona's stock of property is fixed and supply cannot increase to meet growing demand (other than converting larger properties into a greater number of smaller ones).

+ Barcelona real estate guide

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