The outlook for real estate investing in Barcelona
The Wealth Report 2021 speaks to Squircle capital director of development Gonzalo Álvarez about investing in prime homes, why the wealthy settle in Barcelona and why hotels are attractive despite the pandemic.
2 minutes to read
How do you view investing in Barcelona real estate at the moment? Which sectors do you like?
The pandemic has made the investments in the hotel industry more attractive as, in some cases, it has tempered prices to a pre-2017 levels (Note: in 2017 City Hall banned the development of new hotels in the city centre, sending prices soaring).
Although there is still room for prices to come down, opportunities for foreign and national investors have started to pop up in the last few months and it is worth analysing them as investing in Barcelona is a safe bet. The city attracted around 12 million visitors from overseas the year before the onset of the pandemic, almost half of them from the US, France, the UK, Germany and Italy, and the post-pandemic world and the new cultural approach from the City Hall will only strengthen the city’s positioning as a preferred destination in the south of Europe.
With regards to the housing market, in spite of the current pandemic, the Spanish market will continue to be one of the most interesting assets for investors mainly due to falls in house prices in recent months and the accumulation of stock in the market.
Prime asset prices have remained more stable. This makes investing in prime and super prime developments such as Francesc Macià 10 an attractive alternative for companies and individuals with a limited appetite for risk and who tend to lean towards value-add strategies. As the demand for rentals of these type of properties is also on the rise, these investments offer a highly attractive yield.
What benefits does an influx of ultra-wealthy individuals bring to the city?
Barcelona is already a very cosmopolitan city in which ultra-wealthy individuals have settled for decades in order to start businesses and live anonymously. Barcelona is definitely a hub for ideas, projects and people looking for an innovative and creative business environment.
At the same time, it offers unparalleled services for wealthy individuals - from a growing luxury property market with first-of-their-kind projects (FM10), to endless fine dining restaurants. The influx of UHNWIs will just strengthen these features.