Is now a good time to invest in real estate?

Right now, the real estate market is in full boil, as what was considered to be a rapid drop is now a stabilization of prices that, little by little, is increasing in turn. Although the rise in prices isn’t drastic, the revitalization of the sector and the inflating prices, especially in Barcelona and Madrid, is generating more interest in the purchase of real estate. If you are wondering if it’s a good idea to invest in real estate, don’t miss this article by ShBarcelona that was written for you!

Related article: Buying housing in Barcelona

Investing in flats – a profitable option

A series of events currently in progress have made investing in housing an excellent opportunity. For example, bank entities, who a few years ago were extremely cautious about permitting mortgages for purchasing a flat, are now much more open. In addition, larger entities are starting to warm up to the possibility of offering 100% of the amount of the property. This makes it easier for small investors to have access to flats that they could not have previously afforded. On the other hand, the prices of flats for sale have not increased dramatically, as opposed to rental prices, which have grown exponentially. According to the real estate portal Bolsamanía, real estate investment is four times more profitable 10 year bonds, meaning that it’s higher than 7.8%. The large increase in demand for rentals is motivated by various factors, among them being the boom in touristic rentals, as well as the local demand from people who need housing and opt for renting to the detriment of the purchase, due to the bank requirements that they cannot take on.

Related article: Why buy real estate in Barcelona? 

While it’s true that there is the risk that a certain part of this demand is transferred to the buying of apartments when the banks start to offer mortgages of 100%, it’s more likely that the bank requirements will continue to be more restrictive than before the crisis, and there will always be a part of those in need of housing that resist buying and prefer to rent. Furthermore, the flow of tourists in Barcelona, for example, have continued to grow, despite the territorial conflict, making it unanticipated for the demand for touristic rentals, the most lucrative, to fall in the short term. In any case, as with any investment, it is important to advise you to invest in real estate and zones adapted for you to be able to enjoy the real benefit provided by real estate rentals. Because of this, and as we finish helping you to make this major decision, we encourage you to get in contact with a member of our sales department at ShBarcelona, where we provide all information related to real estate investments in the Ciudad Condal and other areas.

Have you invested in real estate? Do you think it’s a good time to invest in real estate in the Catalan capital?