SPAIN OVERVIEW BARCELONA MARESME - Lucas Fox · Corts and Sarrià-Sant Gervasi) ended the year with...
Transcript of SPAIN OVERVIEW BARCELONA MARESME - Lucas Fox · Corts and Sarrià-Sant Gervasi) ended the year with...
B A R C E LO N A
M A R K E T OV E RV I E WA N D FO R E C AST FO R 2 0 1 7
M A R E S M E
S I TG E S
I B I Z AM A R B E L L A-CO STA D E L S O L
VA L E N C I A
M A D R I D
B A R C E LO N A
COSTA BRAVA
OV E RV I E WS PA I N
LUCAS FOX / REAL ESTATE MARKET 2016 / BARCELONA13
W W W. LU C AS FOX .CO M BARCELONA COSTA BRAVAMARESME SITGES IBIZAMARBELLA-COSTA DEL SOLVALENCIAMADRIDOVERVIEWSPAIN
“THE MAIN CHALLENGE DURING 2016 HAS BEEN
HAVING ENOUGH QUALITY PRODUCT AVAILABLE TO MEET
THE DEMAND OF OUR CLIENTS.”
“IN 2016 ALMOST 50% OF THE PROPERTIES SOLD BY LUCAS FOX BARCELONA WERE NEW
DEVELOPMENT PROJECTS AND WE EXPECT THIS PERCENTAGE TO
MAINTAIN OR MOST PROBABLY INCREASE THROUGH 2017.”
Rod JamiesonHead of Operations,Lucas Fox Barcelona
BARCELONA: MARKET OVERVIEW
AND FORECAST FOR 2017
The property market in Barcelona continued to grow
significantly during 2016 and is widely promoted as a
European property investment ‘hotspot’. New and newly
renovated homes continue to be demand, particularly
among international buyers, who have continued to
drive sales during 2016. The local market has also seen
increased activity as the local economy continues to
grow and financing becomes readily available. 2016 saw
a steady increase in property prices and in some highly
sought-after districts saw double-digit growth. In the last
quarter Lucas Fox experienced a sharp increase in sales
transactions to cap off an all-round very positive year.
“In 2015 residential New Development projects started coming onto the market in Barcelona for the first time since the property market crash,” explains Lucas Fox Head of Operations Rod Jamieson. “Through 2016 the release of projects accelerated, increasing the supply of much needed New Development property. In 2016 almost 50% of the properties sold by Lucas Fox Barcelona were New Development projects and we expect this percentage to maintain or most probably increase through 2017. 2017 will see the release of some large residential condominium projects in the city centre and the Diagonal Mar area of the city. We expect these projects to be particularly interesting to investor clients and also clients looking to take advantage of the Golden Visa scheme. As well as these larger projects there are a good number of smaller New Development
projects, which are renovations of classic buildings in the Eixample and Old Town areas, that will continue to feed the demand from international lifestyle investors.”
The area of Eixample Right has been the district that has seen the most growth in demand and price increase, mainly due to a limited amount of exclusive high-end renovation projects available. These properties include unique Modernista buildings with high quality fixtures and fittings, located close to good services and amenities. There has also been increased demand for the Gothic and Born districts, where there has been substantial investment in urban renewal in recent years. There is strong demand for renovated historic buildings housing stylish apartments. The beachside district of Diagonal Mar is once again becoming very popular and boasts some large residential projects. Properties here are being bought for investment purposes as potential rental yields are higher than average. These types of investment properties are in demand by Middle Eastern and Asian investors interested in obtaining the residency visa.
“The main challenge during 2016 has been having enough quality product available to meet the demand of our clients,” explains Mr Jamieson. “Although the increased New Development activity is satisfying a part of this demand, there is still a shortage of reasonably priced high quality product in central locations of the city.”
The most sought-after type of properties are apartments in attractive renovated buildings, with 2 to 3 bedrooms and 2 bathrooms, measuring from 80m² to 150m², situated in prime locations and priced between €700,000 and €1.5 million. Also, smaller apartments of around 50m² to 60m² with 1 to 2 bedrooms and priced around €500,000 are increasingly in demand by Golden Visa seekers and as a rental income investment property.
LUCAS FOX / REAL ESTATE MARKET 2016 / BARCELONA14
W W W. LU C AS FOX .CO M BARCELONA COSTA BRAVAMARESME SITGES IBIZAMARBELLA-COSTA DEL SOLVALENCIAMADRIDOVERVIEWSPAIN
BARCELONA FREE HOUSING PROPERTY SALES TRANSACTIONS
PEAK (Q1 2007) AND Q3 2012 - Q4 2016
Source: National Institute of Statistics
Num
ber o
f sal
es tr
ansa
ctio
ns
Valu
e in
‘000
€
BARCELONA NEW AND SECOND-HAND PROPERTY TRADING:
TOTAL VALUE OF SALES TRANSACTIONS BY FOREIGNERS
Q1 2013 - Q3 2016
Source: Spanish Department of Development
Spain (‘0s) Barcelona New properties Second-hand properties
0
50000
100000
150000
200000
250000
300000
350000
400000
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Q32014
Q42014
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Valu
e in
'00
0 €
Vivienda Nueva Vivienda de Segunda Mano
BARCELONA PROPERTY SALES TRANSACTIONS
Property sales transactions in Barcelona city have shown a steady increase year-on-year during the last 4 years. In 2016 Barcelona saw a significant increase in the number of property sales with the total transaction volume showing an annual growth rate of 21.56%. Barcelona averaged 3,827 transactions per month in 2016, up from an average of 3,148 in 2015.
Similarly, Lucas Fox data shows a substantial increase in the total number of property sales in Barcelona with an annual growth rate of 68.57%.
TRANSACTION VALUE OF PURCHASESBY FOREIGNERS
Amongst foreign buyers the total transaction value of purchases of second-hand properties was higher in the first three quarters of 2016 (for which the latest data is available) than in the same period in 2015 (€894,925,200 in Q1-Q3 2016 compared with €773,251,500 in Q1-Q3 2015), showing an annual growth rate of 15.74%. The number of new builds and newly renovated properties continues to increase, with foreigners spending €77,221,100 on new build and reformed properties in the first three quarters of 2016, an increase of 9.89% over the same period in 2015. Total transaction value of Barcelona property purchases by foreigners in the first three quarters of 2016 grew by 15.25% over the amount of trading for the same period in 2015 (€972,146,200 in Q1-Q3 2016 compared with €843,525,700 in Q1-Q3 2015).
Jan 2007
Oct 2013
Feb 2013
Jun 2014
Oct 2012
Feb 2014
Jun 2013
Dec 2014
Jun 2015
Oct 2015
Feb 2016
Dec 2013
Apr 2013
Oct 2014
Aug 2014
Apr 2015
Dec 2012
Apr 2014
Aug 2013
Feb 2015
Aug 2015
Dec 2015
Apr 2016
Aug 2016
Jun 2016
Oct 2016
Dec 2016
0
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Spain Barcelona
LUCAS FOX / REAL ESTATE MARKET 2016 / BARCELONA15
W W W. LU C AS FOX .CO M BARCELONA COSTA BRAVAMARESME SITGES IBIZAMARBELLA-COSTA DEL SOLVALENCIAMADRIDOVERVIEWSPAIN
€ /
m2
BARCELONA CITY AVERAGE PROPERTY SALES PRICES
PEAK (Q1 2007) AND Q1 2011 - Q4 2016
Source: Idealista
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Ciutat Vella Eixample GràciaHorta Guinardó Les Corts Nou BarrisSant Andreu Sant Martí Sants-MontjuïcSarrià-Sant Gervasi Barcelona City Average
BARCELONA PROPERTY PRICES
According to leading property portal Idealista (which bases its figures on asking prices), property prices for all of Barcelona averaged €3,879 per square metre by the end of 2016, up €487 over the average at the end of 2015, showing an annual growth rate of 14.36% in average property prices. The more prestigious, luxury districts of Eixample and Zona Alta (Les Corts and Sarrià-Sant Gervasi) ended the year with the highest average prices, at €4,610 and €4,787 per square metre respectively, compared with €3,861 and €4,303 per square metre at the end of 2015 (showing an increase of 19.40% and 11.25% respectively). Every district of Barcelona saw an increase in average prices between the end of Q2 2016 and the end of the year.
13 out of 26 apartments of the Casa Burés New Development in Eixample were sold in the private launch phase
Ciutat VellaEixampleGràciaHorta GuinardóLes CortsNou BarrisSant AndreuSant MartíSants - MontjuïcSarrià - Sant GervasiBarcelona City average
LUCAS FOX / REAL ESTATE MARKET 2016 / BARCELONA16
W W W. LU C AS FOX .CO M BARCELONA COSTA BRAVAMARESME SITGES IBIZAMARBELLA-COSTA DEL SOLVALENCIAMADRIDOVERVIEWSPAIN
BARCELONA MID-MARKET PROPERTY SALES TRANSACTIONS
(BETWEEN €450,000 AND €900,000), Q1 2012 - Q2 2016
Source: Spanish Department of Development
MID-MARKET PROPERTY BUYERS IN BARCELONA CITY: COUNTRY OF ORIGIN, 2016Source: Lucas Fox sales data
Num
ber o
f sal
es tr
ansa
ctio
ns
MID-MARKET PROPERTY BUYERS IN BARCELONA CITY: MOTIVATION FOR PURCHASE, 2016Source: Lucas Fox sales data
Barcelona Spain
SpainUKFranceUSAPolandSwitzerlandMiddle EastScandinaviaSouth AmericaOther EuropeOther
Primary ResidenceSecondary ResidenceGolden VisaInvestmentOther
0
500
1000
1500
2000
2500
3000
3500
4000
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Q32014
Q42014
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Barcelona Spain
24%
2%
14%
3%5%3%
14%
2%
3%
10%
20%
Spain
UK
France
USA
Poland
Switzerland
Middle East (Egypt, Lebanon)
Scandinavia (Norway)
South America (Argentina)
Other Europe (Germany, Italy, Netherlands)
Other (Algeria, Australia, China, Indonesia,Kazakhstan, Phillipines, Russia, Turkey)
37%
31%
10%
2%
20%Primary Residence
SecondaryResidenceGolden Visa
Other
Investment
BARCELONA MID-MARKETPROPERTY SALES TRANSACTIONS Barcelona trading of mid-market properties (valued at between €450,000 and €900,000) has increased every quarter over the corresponding quarter in the previous year since the start of 2013. 1,086 mid-market properties were sold in Barcelona in the first half of 2016 (for which the latest data is available), representing 19.27% of the total Spanish mid-priced property market and an overall growth rate of 30.84% over sales transactions for the corresponding period in 2015.
LUCAS FOX BUYER COUNTRY OF ORIGINAND MOTIVATION FOR MID-MARKET PROPERTIES
National buyers continue to make up a significant proportion of mid-market property buyers with almost a quarter of Lucas Fox buyers coming from Spain. Lucas Fox data from 2016
shows a reduction in UK buyers from the mid-level market, probably down to the prospect of Brexit following the UK’s referendum in June and the subsequent weakening pound, but a continued strong representation from the Middle East.
A noticeable change has been that buyers looking for a primary residence (frequently as part of a relocation to Barcelona) have dominated the mid-level market in 2016, with 37.29% seeking a primary home. Those looking for properties as a secondary residence (30.51%) or investment property (20.34%) continue to make up a substantial proportion of the market. The number of buyers seeking access to the Golden Visa has increased with 10.17% of buyers purchasing properties in order to take advantage of the scheme where non-European residents receive residency rights when purchasing property over €500,000.
LUCAS FOX / REAL ESTATE MARKET 2016 / BARCELONA17
W W W. LU C AS FOX .CO M BARCELONA COSTA BRAVAMARESME SITGES IBIZAMARBELLA-COSTA DEL SOLVALENCIAMADRIDOVERVIEWSPAIN
BARCELONA PRIME MARKET PROPERTY SALES TRANSACTIONS
(OVER €900,000), Q1 2012 - Q2 2016
Source: Spanish Department of Development
Num
ber o
f sal
es tr
ansa
ctio
ns
Barcelona Spain
0
100
200
300
400
500
600
700
800
900
Barcelona Spain
BARCELONA PRIME PROPERTY SALES TRANSACTIONS
Following a peak in the second half of 2014, sales of prime properties (valued at over €900,000) in Barcelona have shown a steady growth since the second quarter of 2015. In the first half of 2016 (for which the latest data is available) 204 prime properties were sold across the province of Barcelona, showing an increase of 26.71% over the same period in 2015 and representing 17.75% of the Spanish prime property market overall.
LUCAS FOX / REAL ESTATE MARKET 2016 / BARCELONA18
W W W. LU C AS FOX .CO M BARCELONA COSTA BRAVAMARESME SITGES IBIZAMARBELLA-COSTA DEL SOLVALENCIAMADRIDOVERVIEWSPAIN
PRIME MARKET PROPERTY BUYERS IN BARCELONA CITY:
COUNTRY OF ORIGIN, 2016
Source: Lucas Fox sales data
PRIME MARKET PROPERTY BUYERS IN BARCELONA CITY:
MOTIVATION FOR PURCHASE, 2016
Source: Lucas Fox sales data
BARCELONA CITY AVERAGE RENTAL PRICES
PEAK (Q2 2007) AND Q1 2011 - Q4 2016
Source: Idealista
€/m
2
SpainFranceCanada / USAMiddle EastScandinaviaOther EuropeOther
Primary ResidenceSecondary ResidenceInvestmentGolden VisaOther
Ciutat VellaEixampleGràciaHorta Guinardó
Les CortsNou BarrisSant AndreuSant Martí
Sants - MontjuïcSarrià - Sant GervasiBarcelona average
29%
8%
13%8%
17%
8%
17%
Spain
France
Canada / USA
Middle East (Egypt)
Scandinavia (Finland,Norway, Sweden)
Other Europe (Germany)
21%
54%
4%
17%
4%
Primary Residence
Secondary Residence
Golden Visa
Investment
Other
LUCAS FOX BUYER COUNTRY OF ORIGINAND MOTIVATION FOR PRIME MARKET PROPERTIES
Following on from 2015, national buyers continue to make up a significant proportion of Lucas Fox prime property (valued at over €900,000) buyers, with almost 30% of all buyers coming from Spain, up from 17% in 2015. Lucas Fox data for 2016 shows a significant increase in buyers from the United States and Canada (12.50%) and a continued strong presence from Scandinavia (16.67%), Western Europe (16.66%) and the Middle East (8.33%).
In 2016 the motivation for high-end property purchases in Barcelona was dominated by those looking for a secondary residence (54.17%). Other buyers were split between those purchasing property as a primary residence (20.83%) and a long-term investment (16.67%) or in order to obtain a Golden Visa (4.17%).
BARCELONA RENTAL MARKET The average rental prices for Barcelona city and for each individual district have risen substantially in all neighbourhoods in the last three years.
The overall average rental price for Barcelona city ended the year on €17.90 per square metre, up €2.60 over the end of 2015 average, an increase of 16.99%. The city centre neighbourhood of Cituat Vella and the inner city Modernista neighbourhood of Eixample ended 2016 on the highest rental prices, with Ciutat Vella now averaging €19.90 per square metre (up €2.30 from the end of 2015) and Eixample now averaging €18.90 per square metre (up €3.20 from the end of 2015).
Lucas Fox Barcelona’s long-term rentals division continues to grow with the vast majority of its clients during 2016 coming from abroad (88% foreign clients and 12% national
clients), often as part of a relocation package. The biggest proportion of foreign rental clients came from the UK (12%), followed by the Netherlands (7%) and France (7%). Most rental clients are looking in central areas such as Eixample or the Old Town. Families tend to look at locations near to international schools such as the Zona Alta, Gavà or Castelldefels. The price ranges between €1,800 (for an MBA student) and €6,000 (for expat families). The average price of a Lucas Fox rental property in 2016 was €4,571.58 and it took an average of 20 days to rent a property. 10% of rental clients go on to buy a property in the city.
0
5
10
15
20
25
Ciutat Vella Eixample Gràcia Horta Guinardó
Les Corts Nou Barris Sant Andreu Sant Martí
Sants-Montjuïc Sarrià-Sant Gervasi Barcelona average
LUCAS FOX / REAL ESTATE MARKET 2016 / BARCELONA19
W W W. LU C AS FOX .CO M BARCELONA COSTA BRAVAMARESME SITGES IBIZAMARBELLA-COSTA DEL SOLVALENCIAMADRIDOVERVIEWSPAIN
FOREIGN TRAVELLERS STAYING IN HOLIDAY APARTMENT
ACCOMMODATION, Q1 2011 - Q4 2016
Source: National Institute of Statistics
PASSENGER ARRIVALS AT BARCELONA AIRPORT
Q1 2011 - Q4 2016
Source: Aena
FOREIGN TOURISTS WITH A PRIMARY TRAVEL DESTINATION IN
CATALONIA (INCLUDING BARCELONA), Q1 2012 - Q4 2016
Source: National Institute of Statistics
Fore
ign
trav
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rs (‘
000s
)
Pass
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r arr
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SHORT-TERM RENTAL DEMAND
Barcelona airport arrivals and the number of travellers staying in holiday apartments are good indicators of both the demand for short-term rental accommodations and for the potential benefit of purchasing property for investment as tourist accommodation or for use as a holiday home with some income generation during periods when the property is not in personal use, although tourist licences are still not available in Barcelona Old Town.
Holiday apartment accommodations again outperformed the previous year with 708,286 foreigners staying in holiday apartments in 2016, up from 641,766 in 2015, representing an annual growth rate of 10.37%.
Monthly passenger arrivals at Barcelona’s El Prat airport have been higher for every month of this year over 2015 figures, which in turn were higher than in 2014. 2016 saw an increase of 11.19% over passenger arrivals in 2015, with a total of over 44 million passenger arrivals in 2016.
Foreign travellers with Catalonia as a primary destination – the majority coming to Barcelona – rose again in 2016, maintaining a consistent proportion of almost 25% of all international tourists visiting Spain, similar to the previous two years. Almost 18 million international tourists visited Catalonia in 2016, showing an annual growth rate of 5.27%.
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5000
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Títulodelgráfico
2011 2012 2013 2014 2015 2016
0
500
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3000
Jan Feb Mar Apr May Jne Jul Aug Sept Oct Nov Dec
Mil
lare
s
2012 2013 2014 2015 2016
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LUCAS FOX / REAL ESTATE MARKET 2016 / BARCELONA20
W W W. LU C AS FOX .CO M BARCELONA COSTA BRAVAMARESME SITGES IBIZAMARBELLA-COSTA DEL SOLVALENCIAMADRIDOVERVIEWSPAIN
WEBSITE INTEREST IN BARCELONA PROPERTY: COUNTRY OF ORIGIN, 2016Source: Lucas Fox website data
24%
20%
11%4%
3%2%
2%2%
2%
30%
Spain
UK
USA
Greece
Netherlands
France
Russia
Australia
Ukraine
Other
SpainUKUSAGreeceNetherlandsFranceRussiaAustraliaUkraineOther
LUCAS FOX WEBSITE INTEREST
Almost a quarter of interest in Barcelona properties on the Lucas Fox website came from Spanish residents in 2016. Website visitors from the United Kingdom made up nearly 20% of the total number of visitors and just over 10% of visitors came from the United States. European buyers from France, Germany and the Netherlands also regularly review Barcelona properties on the website.
LUCAS FOX / REAL ESTATE MARKET 2016 / BARCELONA21
W W W. LU C AS FOX .CO M BARCELONA COSTA BRAVAMARESME SITGES IBIZAMARBELLA-COSTA DEL SOLVALENCIAMADRIDOVERVIEWSPAIN
LUCAS FOX PREDICTS
“The Barcelona property market continues to attract investors from all over the world, thanks to its exceptional lifestyle and investment potential. In 2017 we expect New Development sales to drive the
residential property market in Barcelona. We expect prices in the city centre to continue to increase, by between 6% to 8%. Other larger New Development projects that should come onto the market in the second half of 2017 are located in the areas of Eixample Left, Diagonal Mar and Poble Nou. They are perfect rental investments and will also attract non-European buyers looking to take advantage of the Golden Visa residency scheme. Our prediction is that sales in these developments will make up a high percentage of the mid-market transactions by foreign buyers. We predict further growth in the national market, more specifically in the Zona Alta, as the economy recuperates and financing becomes more accessible. We believe that Barcelona will continue to be an investment hotspot for several years to
come, and capital gains growth will be consistent throughout.”
Rod JamiesonHead of Operations, Lucas Fox Barcelona