Dedicated locality research platform
Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
.png)
Barcelona is facing a significant challenge as apartment rents have been soaring since the beginning of 2023. In the first quarter of the year, the cost to rent an apartment reached a new high of €1,087 per month. This information comes from the Catalan public agency Incasòl. This increase in prices comes after the rent controls that were put in place by the regional government of Catalonia in September 2020 were declared unconstitutional by the Spanish courts in March 2022. Since then, landlords have been able to charge market rates for new rental contracts.
The situation is worsened by a notable decrease in the number of available rental homes. In just four years, the number of rental properties advertised on Idealista, a popular real estate platform, has fallen by over 40%. This drop is quite significant, going from 36,000 rental homes in the first quarter of 2019 to only 20,000 in the same period this year.
One of the factors contributing to the rising demand for rental properties is Barcelona's growing reputation as a technology hub. Well-paid international workers are flocking to the city, which has increased the demand for rental homes. Surprisingly, according to census data, one out of every five people living in Barcelona is foreign.
Before the Covid-19 pandemic hit, property prices in Barcelona were already on the rise. However, when the pandemic hit, both tourists and locals left the city, and some buyers were able to purchase properties at significant discounts. In June, the average property price in Barcelona was €4,131 per square meter, showing a 2.5% increase compared to the previous year. This almost brought prices back to where they were at the beginning of 2019.
Barcelona's new mayor, Jaume Collboni, has promised to re-evaluate a social housing requirement that was previously established by his predecessor, Ada Colau. The high property costs in Barcelona are partly attributed to foreign investors and buyers who have been investing heavily in the city. Locals have often pointed fingers at Airbnb-style rentals, accusing them of driving up rental prices. However, the lack of available properties for rent has also contributed to the problem.
In conclusion, Barcelona is grappling with a surge in apartment rents since the start of 2023. The removal of rent controls and a decrease in available rental homes have led to rising prices. The city's status as a tech hub is driving up demand from well-paid foreign workers. Property prices were already on the rise before the pandemic, and now they are nearing pre-pandemic levels. High property costs are impacting locals' ability to buy homes, despite seemingly reasonable prices. The city's mayor has committed to reviewing social housing measures, and the complex situation is fuelled by foreign investors and a shortage of available rental properties.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
