The implementation of teleworking and the speed of vaccination has given light to the recovery of various sectors, including real estate. In the current context, it is expected that, by the end of 2021, a large part of the buyers of luxury homes in Barcelona will be large investment portfolios, executives and international businessmen. The Ciudad Condal will be located in Madrid as the favorite destination for international buyers.
Investment or second homes are the main preferences of international executives and entrepreneurs. In fact, the vast majority of these high-end buyers believe that they will spend more time during the year in their second home, or they will alternate between their first and second homes for many periods.
Although individual buyers often choose to enjoy a vacation home, the luxury real estate market goes further. The objective is to be able to attract buyers so that they can establish their first residence in Spain. To carry this out, the Golden Visa will also be granted to those investors seeking to promote or build their own home on previously purchased land.
In the first half of 2021, foreign buyers accounted for a third of purchases in the luxury real estate sector in Barcelona. However, both its profile, its origin, and that of the offer is quite heterogeneous. If we put the focus on European buyers, the interest falls on renovated second-hand homes, in historic buildings or with cataloged architectural elements. On the other hand, the North American, Asian or Latin American profile opts for new construction properties, with home automation, high security and a style similar to that of the large cities of their selected countries.
Regarding the location of the house, the districts of Sarria-Sant Gervasi and Les Corts-Pedralbes are the most sought-after in Barcelona city. Followed by areas of the metropolitan area such as Castelldefels, Gava Mar or Esplugues de Llobregat.
The demand indicators in the luxury sector are encouraging and predict an increase in the second half of the year. One of the essential factors for the return of foreign investment has been the implementation of telework in many countries.
The new work habits will cause an increase in demand for homes located in peripheral areas of large cities. The competitiveness of the price of the property combined with the weather and the Spanish cultural heritage have become elements of great investment attraction for large international portfolios.
KH Porperty Investors awarded Sanjose Constructora the execution works for the luxury residential it has built in a 20-storey building located on Paseo de Gracia 111 in Barcelona, at the intersection with Avenida Diagonal.
The new residential, which combines in its more than 13,000 m2 of surface, will have 34 luxury homes and will be managed by Mandarin Oriental, in a formula similar to that used by Four Seasons with the luxury apartments of the Canalejas Complex in Madrid.
The property will also have a parking area and large common areas, including its main lounge, green areas, gym, wellness center, business space, as well as a roof with a garden, swimming pool and unbeatable views over the city of Barcelona. .
The building will have 20 floors and some thirty apartments with one to four rooms, with an area that ranges between 100 and 600 m2 and the price per m2 ranges between 16,000 euros and 20,000 euros.
Super Luxury Penthouses
The project houses four full-floor penthouses, but only one is the true jewel in the crown. It is the Grand Penthouse, on the top floor, of almost 600 m2 built, with a double height ceiling and whose terrace surrounds a large part of the property.
The ability of the architect Carlos Ferreter to create buildings that capture the essence of his surroundings have made his studio, OAB, a world-renowned firm and the ideal choice to design the Mandarin Oriental Residences, Barcelona.
Muza Lab Interior design
Designers Nathan Hutchins and Inge Moore are co-founders of the London studio Muza Lab, specializing in unique projects worldwide. Taking inspiration from the building's enclave and its unique connection with the city of Barcelona, they have created an interior concept that revolves around the framing of light and views. Pure, refined and exquisite spaces that undoubtedly need to make Las Residencias one of the most exclusive residential spaces in the world.
The most prestigious residences in the world. From New York to London, Boston to Bangkok, Mandarin Oriental offers a truly unique lifestyle.
KKH Real Estate Investors
With more than 20 years of experience in real estate development in Spain, the group specializes in the construction of luxury hotels and high-level residences.
The return of the foreign buyer of luxury homes in Barcelona, which already accounts for 30% of the demand a few days after the end of the first semester, has increased prices compared to the same period in 2020, with Europeans, Latin Americans, Asians and Americans to the head.
According to a study by the Geinbar real estate agency, national demand accounted for 80% of the sale and purchase operations in 2020 with a budget of between 500,000 euros to one million euros.
The recovery of the market in June has placed the average price of the luxury residential at € 6,000 / m2 in second-hand properties and € 9,000 / m2 in new construction.
The areas most in demand for housing in Barcelona continue to be the districts of Sarria-Sant Gervasi and L´Eixample.
The most requested product is still apartments of about 130/150 m2, with three bedrooms, two bathrooms and large terraces.
In the luxury rental market, downtown areas are also the most in demand, a trend that took shape during the pandemic due to its versatility and security and that will continue in 2021, according to the report, which indicates that the opening of borders is increasing dramatically. notable is the number of luxury rental operations to senior executives and digital nomads.
Geinbar's forecasts for prime areas indicate that the rental price has already reached 3,000 euros per month in flats of 150 square meters and up to 7,000 euros per month in individual houses of more than 300 meters.
Heidi Tort, managing partner of Geinbar, explains that, although the national buyer has been the one that has maintained activity in the Barcelona real estate market, international demand has a very prominent weight in high standing, especially in the luxury market, for over a million euros.
This type of product, which is not abundant in the city, finds little demand in the national buyer, so it is foreigners who mostly end up investing in new construction or houses in high-level situations.
Follow this link to know the luxury homes in Barcelona for sale
The price of luxury housing in Barcelona has remained stable during the coronavirus crisis, according to the report Impact of the pandemic in prime areas of Barcelona prepared by Fotocasa based on data from DataVenues.
The prices of rental housing do suffer more pronounced decreases than the sale price.
The study shows that, despite the fact that prime prices have had a drop at the end of 2020 in most towns, this drop has been smoother than in the conventional residential market of Barcelona, thus showing greater resilience against the crisis.
On the contrary, the prices of rental housing have suffered more pronounced declines than the sale price. During the pandemic, the supply of this type of housing has increased exponentially, mainly due to the transfer from tourist accommodation to residential ones.
Legislative uncertainty in rent
The Rental Contract Income Updating Index (ARCA) continues its downward trend, although increasingly moderate, with the March figure standing at -1%.
"The economic situation we are going through is softening rents, however, the legislative uncertainty in the face of an imminent new rental law is slowing the pace", explains David Caraballo, Commercial Director of Safe Rental.
“In recent weeks, a lot of uncertainty has been generated among the owners with the possibility of the approval of a new law that puts a ceiling on prices, which is having an impact on the new contracts. Many owners are at the expense of seeing what happens, delaying operations and containing the offer ", continues the manager.
For Caraballo, «it is necessary to increase the supply of properties available for rent, if limitations are established, the opposite will be achieved. The market needs stability and certainty, which give the owners the necessary security to put their homes up for rent ”.
Residential land for properties of more than 1 million euros is exhausted in Barcelona
The economic earthquake unleashed by the pandemic has hit the brick sector, which in recent years recovered the pulse lost after the 2008 crisis. However, it has hardly caused an earthquake in the luxury residential market in Barcelona. The most expensive properties are a safe haven for baggy pockets and in times of uncertainty investment does not stop. The city of Barcelona, along with the main European capitals, is a magnet for national and foreign buyers, but the land available for new luxury homes is exhausted in the most privileged locations in the center of Barcelona. Real estate luxury is a rare and coveted treasure, even in times of pandemic.
Go to News →