The new development and refurbishment business has lept back to life in Barcelona says the international real estate agency Engel & Volkers, whilst also providing figures to show how important foreign demand has become in the city centre.
The residential real estate market for new construction has bounced back in Barcelona showing strong signs of recovery and, for the first time in ten years, the number of new development projects launched has surpassed those completed. According to the latest data published by the Ministry of Public Works in Barcelona, the city granted a total of 639 licenses to build new housing, representing a 40% increase over the same period for 2015.
Engel & Völkers is currently involved in marketing 25 new developments or major housing restoration projects in Barcelona. A figure that Jorge Campreciós, Director of Property Development of Engel & Völkers, anticipates will “double in 2017”.
Land shortages in the city centre have pushed new development towards the periphery, with smaller projects in Les Corts, Sants, Gracia Nova and Horta-Guinardo, and larger projects in Badalona, Hospitalet, and Cornella.
Renovation projects are the order of the day in central districts like the Ciutat Vella Old Town (including the Gothic Quarter), Eixample, and Gracia, as there are almost no sites available for new building in these areas.
The areas of Eixample and Ciutat Vella are where the majority of purchases are made by international customers who account for 75% of the transactions compared to 15% by local buyers and 10% by national Spanish buyers. In the Gracia district the number of international and national clients are equally divided, all according to Engel & Völkers’ figures.
New and refurbished prices are now hitting highs of 15,000 €/m2 on Paseo de Gracia, report Engel & Völkers. The following table summarises average new build prices by street and district, for projects sold by them.