It is well known that prices of apartments have risen considerably, ever since the crisis that never seemed to end started about ten years ago. But the crisis did eventually end, and real estate in some areas of Barcelona is already back at the level it was on before the crisis. Of course, property prices are affected by many factors, among them the scarcity of apartments, both for buying and renting. Not every area in Barcelona has had to deal with the same price increases however, so today the ShBarcelona team will focus on the neighbourhoods with increased property prices.
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Parts of Barcelona where prices of apartments have increased
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Although prices have increased nearly everywhere, some areas of the Catalan capital have suffered more considerable price increases, compared to prices before the real estate bubble burst. There are many explanations for this, including the high demand for housing when there is only low supply. Besides the first explanation, the increase of tourist accommodations have caused many property owners to rent out their property, taking their apartment off the long-term rental market. And the last factor is the banks, that have changed their regulations and procedures for mortgages and loans. For example, some banks now offer a 100% mortgage, without the the customer needing to have any savings, something that was a genuine obstacle for people wanting to buy a property. In case of renting, prices are very high in many areas of Barcelona. And as supply is very low, this leads to many people having to offer a series of credentials to survive the competition and to be chosen for the apartment.
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As you can understand now, the outlook for those seeking to buy an apartment is not very positive, if you don’t have a good and consistent income. Property owners, on the other hand, are in luck, as high demand means they will receive a good return on investment, either by selling or renting out. Although numbers suggest that there is a slight slowdown in price increases at the moment, truth is, that the lack of supply continues to stress the real estate market and prevents apartments getting cheaper. That is why it is of the utmost importance to know the different areas of Barcelona, where property prices have increased most since the crisis. First there is Ciutat Vella, where prices increased noticeably thanks to its boost of tourism accommodations. This is the most desired district by people who daily visit the Catalan capital. In second place there is the district of Sants-Montjuïc, another area attracting a lot of tourists, due to its proximity to the centre and the conference area, located at Plaza España. Third is the district of Eixample, which is the area in Barcelona with the highest price increases, thanks to its proximity to the centre and the large luxury shopping zone and monuments, like La Pedrera. Other areas that have greatly increased in value since the real estate market recovered from the crisis, are Horta-Guinardó, Sant Martí and Nou Barris.
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