Is it a good idea to buy apartments in Barcelona to rent?
Of course yes! In Barcelona, with the whole stock market thing being so unstable, the housing market is like hotcakes. Right now, people see houses as a safe haven to put their money, especially here in Barcelona, where rental prices do not stop rising. And you know what, there are more foreigners and students willing to pay extra for a place to live, like 30% or even 50% more than locals.
Look, according to data from the National Statistics Institute, almost 13% of the population in Spain are foreigners. And those tourists are going all out, paying about 500 euros more per month in rent, which is 50% more than what Spaniards pay.
So, what you need is to choose the area where you invest well and make sure that the apartment is ready to put people in right now. This is key to minimizing risk and, if you invest in central neighborhoods, you are assured that you will quickly find a tenant.
And wait, it's not all bad news. Even though some places are putting obstacles in place with new housing laws and the purchase of new homes is going down, the lack of rental supply is what will make you money. According to the INE, second-hand housing transactions have increased by 28.3% and the price of these homes has only decreased a little.
Although it is difficult to get financing from banks to buy right now, people still need houses to live in, so the rental market is more active than ever.
And best of all, profitability is through the roof. Rental prices are skyrocketing, especially here in Barcelona, where people are paying an average of 1,087 euros per month. Since 2020, the profitability of investing in apartments in Barcelona has risen from 4% to 6%, and some say it can even reach 7%.
With so much rent going up, there are more and more people looking for small apartments. Foreigners and students are crazy about apartments of around 50 square meters, and if they are in the center, even better.