Dear Mr Stuecklin,
Do you still believe the poble-sec area of Barcelona is an area with great investment potential? if so, what kind of investment(e.g. Short-term holiday or student buy-to-let) would you recommend your clients?
I think prices will continue rising in all areas of Barcelona for the foreseeable future, including in the Poble Sec.
Prices will rise because local and foreign demand are growing, for different reasons, whilst the supply is fixed and the market is already tight.
I would rather that prices didn’t rise because I think locals are being priced out of the market, but that problem is not unique to Barcelona – I was priced out of London 15 years ago.
Prices have already risen significantly in the last few years, so you missed the sweet spot, but I expect them to continue rising for the time being.
I think Barcelona still looks reasonably priced by international standards (or at least it did the last time I checked), when you compare with other cities with a global reputation. However, in comparison to local incomes, prices look high. In New York, for example, prices might be double Barcelona, but incomes are five times higher (I’m guessing, but I wouldn’t be surprised if I’m not far off).
I also think you will struggle to get good rental yields in Barcelona today, though in the Poble Sec you could try extended stay rents to clients such as students. I’ve heard that is still working reasonably well.
Forget holiday-rentals (30 days or less), unless you want to take the risk of doing it illegally, like many people do.
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