Madrid is losing a battle against the style, culture and international makeup of Barcelona.
In December last year, Barcelona emerged as the top destination for real estate investment in Spain with close to €3 billion compared to Madrid’s €2 billion. It was the first time the Catalan capital beat the Spanish capital since 2013.
And guess what?
Just six months in 2022, Barcelona has already received a record-breaking €2 billion in property investments – a 23% increase on the first half of 2021, and higher than even the property bubble in 2007.
The lion’s share of investment (96%) went into the 22@ tech hub in Poblenou, where companies like Meta, Amazon, Microsoft, Orange, HP and more have set up their European hubs.
Growing investment and the return of travel has also seen rental prices break records with the central Ciutat Vella registering an average of €1,019 per month.
Another boon came to Barcelona in April as it was named the next host of the America’s Cup in 2024. Barcelona will become the first venue to stage both an Olympics and an America’s Cup once the world’s longest-running sporting trophy comes to town – preparations are already underway to renovate 24,000m2 of the old Olympic Port into a a gastronomy hub with solar-panel pergolas, green roofs and accessible spaces.
Looking at the property market in Barcelona, it’s hard to remember COVID-19 restrictions were still in place in February.
So what’s happening with housing prices in Barcelona? And what’s the cost of housing in Barcelona according to its neighbourhoods?
Read on for insights into housing prices in Barcelona in Q1 & Q2 of 2022.
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Property transactions in Barcelona 2022 vs 2021 vs 2020
The Spanish property market recovered strongly in 2021, selling more houses across the nation than in 2020 and even in pre-pandemic 2019.
The Spanish National Institute of Statistics (INE) registered 565,983 property sales last year.
That’s an increase of 34.7% on 2020 and the highest figure since 2007 when a property boom saw 775,300 homes sold.
In the first six months of 2022, Spain’s property market say 331,000 property transactions and many analysts believe 2022 could be the year that breaks 2007’s record.
Property transactions in Barcelona 2021 vs 2020
The province of Barcelona claimed 57,510 property transactions last year, second only to Madrid as the capital has double Barcelona’s population (3.2 million compared to 1.6 million).
The biggest growth in the Barcelona (province) real estate sector was with second-hand homes, which grew 32% compared to 2020. Sales of new homes in Barcelona increased 23.7% last year.
Barcelona province is leading Madrid as well in proportion of foreign buyers, making up 8.67% of transactions in the last quarter of 2021 compared to 4.53% in the capital (Colegio de Registradores).
Barcelona real estate price trends in Q1 of 2022
Housing prices began a dramatic rebound in Barcelona city in Q1.
Figures from leading Spanish property portal Idealista showed some fascinating figures for anyone looking to buy property or invest in Barcelona.
Here are the figures you need to know:
- Housing prices in Barcelona in March 2022 reached an average of €3,972 per m².
- This was a 1.1% increase from February 2022 (€3,929 per m²) and the highest average monthly housing prices since July 2021 (€3,989 per m²)
- In March 2022 housing prices in Barcelona were -0.7% down compared with March 2021 (€4,001) and -5.8% down compared with March 2019 (€4,217).
- but data shows that property prices are actually on the rebound in Barcelona city after falling from the onset of the COVID-19 pandemic until October 2021
For context, Barcelona recorded one of its highest average property prices in the month of June 2007 (€4,255 per m²) before the onset of the financial crisis. Barcelona property prices experienced a dramatic surge from 2014-2018 to hit its highest-ever average housing prices in September 2018 (€4,279).
Figures then began falling month-on-month until hitting a low in October 2021 at €3,908 per m² – the lowest monthly average seen since 2017.
One of the causes of the surge in the Barcelona property market was buyers enjoying the lowest-ever fixed interest rates on mortgages, at 1.5%.
The international bank ING said that Q1 of 2022 was the ‘best time in history to sign a mortgage agreement’ in Spain.
Barcelona property prices per neighbourhood in Q1 of 2022
The growth in housing prices in Barcelona in the last year depended greatly on location – with exclusive, desirable and quieter neighbours experiencing the biggest price increases.
For example, the central and stylish Eixample district (home to the Sagrada Familia) saw the highest growth in property transactions of any district, growing 60% according to figures from the Generalitat de Cataluña.
It’s little surprise that in March 2022 property prices in Barcelona also grew fastest in Eixample, rising 3.6% above March 2021 to a price of €4,609 per m².
Sarrià-Sant Gervasi saw a 50% growth in property transactions throughout 2021, and at the end of March 2022 prices grew 1.8% above March 2021 figures to hit €5,336 – retaining its title as Barcelona’s most expensive district.
Meanwhile Barcelona’s cheapest neighbourhood and most associated with immigration, Nou Barris, saw prices fall -3.4% from March 2021 to March 2022 (€2,423).
The Ciutat Vella district in the heart of Barcelona – one of the busiest in the city – saw prices fall -4.3% compared with March 2021 to €4023 per m² in March 2022.
Insightful comparisons can also be drawn by comparing pre-pandemic prices of Barcelona neighbourhoods in March 2019, when prices were on average 6.2% higher than March 2022 (€4,217 per m² compared to €3,972 per m²).
Les Corts, Barcelona’s least-populated and quietest district, was the only neighbourhood to record higher property prices in March 2022 (€4,897 per m2) compared to March 2019 (€4,852).
This was due to the COVID-19 pandemic and buyers wishing for more space, open areas and less contact with others.
Barcelona real estate price trends in Q2 of 2022
In August, Spain’s national institute of statistics has not yet released data on Barcelona housing prices in Q2 of 2022.
But according to the property report from leading online portal Idealista, prices have kept on growing. After reaching €3,972 per m² at the end of Q1 Barcelona housing prices are now an average €4,032 per m² at the end of Q2.
This is a 1.6% increase on Q1 of 2022, and a 1.1% increase on Q2 of 2021.
While the rebound is strong, prices have not yet fully recovered from the COVID-19 pandemic – at the end of Q2 in 2019, Barcelona property prices were at €4,206 per m².
The top 5 most expensive districts in Barcelona are still ranked the same in Q2.
These are:
- Sarrià-Sant Gervasi – €5,381 per m²
- Les Corts – €4,793 per m²
- Eixample – €4,781 per m²
- Gràcia – €4,295 per m²
- Ciutat Vella – €4,136 per m²
Housing prices in Barcelona & real estate trends in 2022 – where next?
Housing prices are rising once again in Barcelona city following the negative market impacts of the COVID-19 pandemic.
However, inflation in July 2022 hit 10.8% in Spain – or six decimal points higher than in June. As a result of similar situations across the EU, the European Central Bank’s governing council agreed to raise interest rates for the first time in 11 years. The interest rate hike has started at 0.5% and is expected to increase.
Both of these factors mean housing will become less affordable, and mortgages less attractive.
Nevertheless, housing prices in Barcelona are continuing to increase.
Property prices rose 0.1% in July 2022 compared to June as buyers and investors snap up housing that’s still much cheaper than before the COVID-19 pandemic. Barcelona rental yields have also been as high as 8.5% making 2022 a fantastic time to invest in Barcelona property as an inflation hedge.
Lasose Properties & Investments is a leading real estate agency offering exclusive listings of properties for sale in Barcelona. We are experts in individual and corporate Barcelona relocations and offer tailored advice if you’re looking to invest in Barcelona property.
