Talking to a Barcelona developer the other day they told me their cost of purchase for buildings in Barcelona has gone up by around 30% in the last 6 months. Another developer has put up retail prices 15% in the last few weeks, yet continues to sell at the same pace. I’m seeing a clear change of cycle in prime Barcelona. And as elsewhere, the change is being driven by foreign demand.
building prices are up 25% at least all over the country; higher social security charges, new legislation, higher price materials and difficulty in raising finance are affecting builders in their tendering. Also, the builders that are left don’t want to work for nothing and require a good return or don’t bother bidding…….. 😥
I personally know someone, based in London but with Catalan connections, who has bought an apartment in Barcelona this summer. On the one hand I can understand that it’s a good time to buy, when prices are at their floor (or as close as they can be), and of course you’ll still get a lot more for your money than in London. However I do wonder whether this independence quarrel could turn out as bad news for stability and prices (Catalunya, not Scotland! )
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