Real Estate Market Report MR-2017

Page 1


ONE YEAR OF CONTRASTS. One year of contrasts. The truth is that defining 2017 is not easy. It has been a year where we find a great diference between results and sensations. If we look only at the results, we have to say that it has been a very good year. 2016 was a very good year and 2017 was clearly better. All the indicators have behaved upwards. But sensations that leaves us this year are like a roller coaster. At the beginning of the year, when we made a 2016 balance, we were wondering if this growth rate was good and, above all, if it was sustainable. For many months of 2017 one of our concerns has been the high sales rates, price increases, etc. In short term, it looks good news, but if you are worried about the market in medium and long term- as we are-, too rapid growth is worrying. In addition, there is a limiting factor that is the slowness of urbanism and the lack of ground finalist in accredited demand areas and that, in a fast growing environment of sales, can grow prices rapidly. The rental market also leaves us with these contrasts: good results and worrisome sensations. In this market we still have a very significant lack of supply that directly affects the price. here are very high prices, especially in the city of Barcelona. One of the remarkable events of 2017 is the publication of the Rental Prices Index, a well-made, useful tool, but little used to refer to the market. At the same time, there have also been external factors that have had their negative effects on the real estate market of 2017. We can summarize it in tourism-phobia, terrorism and politics, effects that are very focused on the city of Barcelona and in the prime market and foreign investments. In summary, good numbers, but a pace of growth difficult to sustain.

Made by:

GuifrĂŠ Homedes Amat @guifre77


RENT – Contracts and prices Amat Immobiliaris Data

% RENTAL operations related to price segment Barcelona

Sant Cugat

€ / m2/ month

Sant Just

18

Our forecasts for 2017 were not very optimistic about the number of new contracts, basically due to the lack of existing offer. Even so, after several years of decline, in 2017 we managed to make 16% more new contracts than in 2016. In all our offices, the trend has been rising during this last year.

15,85

16 14 12

11,72

10

To put in place the entire market, it is also necessary to take into account the renovations that nowadays represent a very important part of the contracts that are made during the year. In our case, for three years we have not stopped growing the number of contracts we renew during the year. The average increase in income in all renewals made in 2017 was 9.2%, which we believe is an acceptable value if we take into account the increases in the rental price that has been on the market during the years that the contract that has been renewed has been able to last (for example, for a renewed 3-year contract with an increase of 9% it means an annual increase of 3%, when the market has risen much more). The other data to take into account is that, of all contracts that ended in 2017, 81% were renewed. It represents a very high percentage and, afterwards, it has effects on the offer available on the market.

10,57

8 6

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

If you look at the average residential rent it is convenient to separate between flats and houses as there are important differences. For the last seven years, 2017 is the first year where in all our offices the average rent of rented apartments is above € 1,000 / month.. % RENTAL operations by housing tipology Flat

House

Barcelona

Flat

House

Sant Cugat

Flat

House

4.000

Sant Just 3.994

3.000

Talking about rent prices is the most complicated since it can be done from different points of view. In general terms, one of the data with the best comparative is € / m2 / month. This is the relative data that can better be compared. As reflected in the graphic, it has risen for years, but the great increase has been in the last three years and it should be noted that this phenomenon is much more pronounced in the city of Barcelona. In contrast, in our offices in Sant Just and Sant Cugat, this year, for the moment, has stabilized. Remember that this is Amat Immobiliaris data, and that the product we rented during the year is what determines the prices we show. We should also point out that in 2017, in Barcelona we have rented more new homes than usual, which has had its effect at a higher relative price.

2.335 2.000

2010

2017 2016 2015 2014 2013

18,63 14,15 11,11 9,02 9,81

2017 2016 2015 2014 2013

15,00 13,54 12,10 11,01 10,03

HORTA GUINARDÓ

SARRIÀ ST. GERVASI

LES CORTS

2012

2013

2014

13,68 11,04 11,93 9,27 8,29

2017 2016 2015 2013

2016

2017

15,00 10,2 9,30 7,07

2017

11,10

2017 2015

10,77 12,03

2017 2016 2015 2014

11,98 14,26 19,02 10,32

NOU BARRIS

ST. ANDREU

EIXAMPLE

SANTS MONTJUÏC

2015

ST. MARTÍ

CIUTAT VELLA

MARKET REPORT

18,40 11,88 12,74 11,30 10,40

2011

For the city of Barcelona, we also detail the behavior of income that is affected in the districts where we usually work. It should be clear that being a data per neighborhoods where flats are traditionally larger, such as those in the Upper Zone, the impact is lower but in absolute value rents are higher.

GRÀCIA

2017 2016 2015 2014 2013

€/month

0

rental price repercurssion in BARCELONA 2017 2016 2015 2014 2013

1.092 1.089 1.023

1.000

3

Data in €/m2/month

2017 2016 2015 2014 2013

14,66 14,20 10,34 8,50 9,51

2017 2016 2015 2014 2013

11,27 9,67 9,88 9,43 7,84


RENT – Type of properties Amat Immobiliaris Data

The type fat we rented the most in 2017 has: 3 rooms, 65-95 m2 constructed area and Energy Rating E

Another way to see that we are explaining about rent increases is to see proportionally in which price ranges we have made most of new contracts. As reflected in the graphic, it is clearly seen that in 2013 the predominant range was <600 € / month, it has been moving to the range of 1,000-1,500 € / month and 2017 has represented more than one 35% of new contracts made.

In terms of Energy Rating we have rented housing that could be considered energy efficient; 79% have E or worse qualification. This is a topic where, more in mind that in the future, the value given to the Energy Qualification of a property should be rethought by the owner or the tenant. In terms of Rotation, at this moment we are in an average of 2 months when renting a property since it is on the market. As seen in the graphics, 72% of real estate has been rented in less than 2 months, 16% in 2-3 months and 12% in more than 3 months. It’s been practically for three years now that we are in this value, or somewhat below, and we always reinforce the same message: it depends a lot on the output price compared to the market price. Obviously, with the absolute value of this price, the more expensive it is, more time to find a tenant.

% RENTAL contracts by price segment 2013

2014

2015

2016

2017

35% 30% 25% 20% 15% 10% 5% 0

< - 600

601 - 800

801 - 1.000

1.001 - 1.500

1.501 - 2.500

2.501 - >

Tipologia immobles llogats

12% 24% >120

> 3 MONTHS sqm

RANGE PRICE

rotation

16%

> 2.500

72%

2-3 MONTHS

2.500-1.500 1.500-1.000 1.000-800

< 2 MONTHS 95-120 sqm

<65 sqm

800-600

15%

< 600

38%

23%

1 BED

2 BED.

3 BED.

19%

22%

36%

RENT – Tenant profilesr Amat Immobiliaris Data

MARKET REPORT

5% 12% 36% 25% 24% 9%

ENERGY CERTIFICATE

65-95 sqm

Requested surfaces

4

€/month

It is the first time we make this analysis publicly. In this case we focus on the age of the tenants and the effort they have to make in order to be able to access the market with current incomes. As shown in the graph, almost 60% of new contracts that we have done in 2017 have been for people under 40 years of age and who allocate 30% of the gross family income to pay rent. This impact is reduced as we grow in age ranges. It will be interesting to see how these data evolve over the next few years.

4 BED.

23%

Number of bedrooms Requested

1% housing 6% housing 2% housing 12% housing

54% housing 11% housing 14% housing

tenant profile Age profile

Nº of contracts

Average family gross income

average gross income assigned to rent

< 40 YEARS

59 %

39.000 €

30 %

40-50 YEARS

22 %

73.000 €

25 %

50-60 YEARS

14 %

68.000 €

23 %

60 < YEARS

5%

59.000 €

26 %

RENT – Index prices. Amat Immobiliaris Data This is a reference index that was put into operation in April 2017. We believe that it is a little-known, and little-used, but very useful tool to provide information and transparency in the market.

Analyzing all the new contracts made in 2017 in the city of Barcelona, we are on average 4.5% above the top rank of the index. If we take all new contracts made on new workplaces, we are actually between the Index itself and the Higher Rank of the Index, 1% below this Higher Rank.


SALES MARKET Amat Immobiliaris Data

SECOND HAND PRICES – Prices Amat Immobiliaris Data

To tart with, we will make a global point of Sales, but later when we talk about prices and types of buyers, we will make a clear distinction between Second Hand Sales and Brand New Construction Sales as they are differentiated segments.

If you look at the average price, it has behaved differently according to our offices. In some places it has fallen and in others it has risen, but it is clear that they tend to converge above € 400,000. This data is very tied to the offer and sold during the analyzed year.

SALE – Global Volume Amat Immobiliaris Data

SALES AVERAGE SECOND HAND PRICES (€) Barcelona

As it happened in 2016, 2017 has been a good year in number of operations. Last year we doubled and we’ve done 23% more than in 2016.

Barcelona

Sant Cugat

Sant Just

700.000 € 600.000 € 500.000 €

Nº SALES operations Total

Sant Cugat

462.334 € 421.568 € 395.414 €

400.000 €

Sant Just

300.000 € 0

2012

2013

2014

2015

2016

2017

Last year sales volume had grown, but not the same proportion, because the average sales price had dropped from the previous year. Well this year 2017 happend the same and volume of sales growth was 13%.

2012

2013

2014

2015

2016

2017

It is in the segment of € 300,000-450,000 where, in percentage, we do most of the operations. It should be clarified that in the five-year evolution of the high segments it may seem that operations have been reduced, although in fact they have been maintained. What happens is that the percentage of the total number of operations carried out has been reduced, since in the lower segments many

% SALES operations by price segment (mil €) SALES invoicing (€) Total

Barcelona

Sant Cugat

2013

Sant Just

2014

2015

2016

2017

45% 40% 35% 30% 25% 20% 2013

2014

2015

2016

2017

10%

SALES – Foreigner buyer profile Amat Immobiliaris Data

5% 0

If we look at foreign buyers, it must be said that their percentage impact has diminished, but basically it is because the recovery of domestic demand has been higher. Its importance is that, in many cases, the most expensive operations are done with foreigners. The graphic shows the evolution of recent years and its impact when related to the absolute prices of the sale of properties. The nationalities that bought us most in 2017 were: Sweden, Egypt, France and China. FOREIGN Operations of relevant import ( % ) > 500 M/€

Foreign operations > 1 M/€

Op. a Barcelona

80%

Op. a Amat

60%

40%

20%

2011

2012

2013

2014

2015

15%

2016

2017

0

------- < 300.000€

300.001€ 450.000€

450.001€ 600.000€

600.001€ 750.000€

750.001€ 900.000€

900.001€ < -------

more operations have been done. If we look at the repercussions we have sold, we will see a clear upward trend in the surroundings of Sant Cugat and Sant Just. In these two areas the increase was 16% and 8%, respectively. In the surroundings of Sant Just we have a wide range of repercussions, from the € 2,500 / m2 of Sant Feliu de Llobregat to € 3,300 / m2 of Sant Just Desvern. In the surroundings of Sant Cugat the average is € 3,660 / m2, but with a large fork between 2.500 € / m2 in Valldoreix and the maximum € 4,800 / m2 in Sant Cugat del Vallès center. In Barcelona city the repercussions behavior is different according to each district, in some they go up and in others they lower. The average of everything we have sold in the city has remained stable compared to 2016. This data is always influenced by the offer that has been made during the year and the rest of the offer to the surroundings.

MARKET REPORT

2012

5


The graphic shows the repercussion of 2017 and the evolution of the last five years by district. We have only experienced average repercussions on the rise in Sarrià-Sant Gervasi and Gràcia, while in the Eixample, Les Corts and Sant Martí the trend has been down. Diagonal

Mar is an example of where we did little, but very expensive, years ago, because demand was high, but the offer was virtually nonexistent, and with the passage of time, more offers appeared and we have managed to sell more but at a lesser price.

PRICE REPERCUSSION OF SECOND HAND SALES IN BARCELONA 4.172 €/sqm 3.788 €/sqm 2.990 €/sqm 3.345 €/sqm 2.441 €/sqm

2017 2016 2015 2014 2013

3.383 €/sqm 3.723 €/sqm 3.462 €/sqm 3.295 €/sqm 3.182 €/sqm

2017 2016 2015 2014 2013

3.920 €/sqm 4.432 €/sqm

2017 2016 2015 2014

LES CORTS

3.003 €/sqm 3.062 €/sqm 2.721 €/sqm

3.923 €/sqm 3.237 €/sqm 2.874 €/sqm 2.463 €/sqm

HORTA GUINARDÓ

SARRIÀ ST. GERVASI GRÀCIA

2017 2016 2015 2014 2013

2017

NOU BARRIS 2017

2.769 €/sqm

ST. ANDREU

EIXAMPLE

2017

5.546 €/sqm

2017 2016 2015 2014 2013

ST. MARTÍ Diagonal Mar

CIUTAT VELLA

SANTS MONTJUÏC

3.923 €/sqm

3.262 €/sqm

2017

5.973 €/sqm 7.434 €/sqm 6.995 €/sqm 6.125 €/sqm

4.727 €/sqm

Data in €/sqm

SECOND HAND SALE – Typology poperties Amat Immobiliaris Data Previously we have already commented on the price ranges where it was most sold in 2017. The type fllat we have sold

the most in 2017 has: 3 rooms, 90-120 sqm constructed area and Energy Rating E. Highlight the poor Energy Qualification that second-hand properties sold have, since 65% of the properties had an Energy Rating E or lower.

second hand housing sold by tipology MARKET REPORT

price range

9%

14% >180 sqm

21%

41%

120-180 sqm

6

25%

30% <90 sqm

4 DORM..

3 DORM.

35% 90-120 sqm

MIL €

900 <

1% 1%

900-750 750-600

3%

600-450

7%

450-300

44%

< 300

43%

energy certificate

20% 5%

requested

>4 DORM.

2 DORM. 1 DORM. Number of bedrooms Requested

0% housing

42% housing

15% housing

5% housing

15% housing

15% housing

8% housing


SECOND HAND SALE– Buyer’s profile Amat Immobiliaris Data The 2nd hand buyer’s profile in the areas we work in, the most is quite similar but with some differences: The Investors predominate in Barcelona city with respect to our other offices in Sant Cugat and Sant Just.

For 7 years in Barcelona city, more than 50% of our sales have been made to foreign buyers.

The buyer in the towns of the 1st metropolitan area is a little younger than in the city itself, especially in the surroundings of Sant Just

In all areas more than 50% of the operations have been financed.

secong hand buyer profile

barcelona

workers

37% businessmen 26%

5%

26% investor

9%

14%

>60 years

public servant

50-60 years

33%

48%

40-50 years

55%

<40 years BUYER AGE

operations financed

NATIONALS EUROPE NORTH AFRICA SUD AMERICA ASIA RUSISA

50% 19% 19%

Sant cugat

businessmen workers

73%

ORIGIN OF THE BUYER

HIGH LEVEL PROFESSIONAL

45%

26%

16% 3%

investor

26%

50-60 years

retired

31%

20%

operations financed

12%

>60 years

31%

40-50 years

<40 years EDAT DEL COMPRADOR

public servant

NATIONALS

97% FINANCEMENT

sant just

workers

55%

30%

45%

4% 4%

investor

11,5%

11,5%

>60 YEARs

50-60 YEARS

retired

35%

17%

operations financed

3%

ORIGIN OF THE BUYER

HIGH LEVEL PROFESSIONAL

businessmen

EUROPE

42%

40-50 YEARS

<40 YEARS EDAT DEL COMPRADOR

public servant

NATIONALS

EUROPA

ASIA

94% 3% 3% FINANCEMENT

HIGH LEVEL PROFESSIONAL

ORIGIN OF THE BUYER

MARKET REPORT

FINANCEMENT

6% 3% 3%

7


BRAND NEW PROPERTIES. General situation of the New Real Estate Market in Catalonia in 2017 in accordance with the extensive report prepared by the APCE. Catalonia. In October 2017, there were 1,286 New Construction promotions with 19902 housing, 5844 of which are for sale. 54% of active band new promotions in Catalonia are in Barcelona province. 62% of housing are in closed multi-family buildings. It should be noted that the average surface is 93 sqm, 8.9% more than the previous year 52% of the promotions offer 3-bedroom apartments with surfaces of 70-90 sqm 42% of the promotions offer 2 bedroom apartments with 50-70 m2 surfaces The average price of the property is € 245,923, 21.2% higher than the previous year The Useful Repercution Price is € 2,545 / sqm, 11% higher than the previous year Barcelona City 107 promotions with 2,057 homes, 605 available at the time of the study. Horta-Guinardó with 17 promotions Sant Martí with 16 Ciutat Vella with 15 Gracià with 13 Eixample with 12. 39% of the houses are of 3 bedrooms, 36% of 2 bedrooms and 14% of 4 rooms. The Useful Repercussion Price is € 6,291 / sqm, a 15% increase compared to 2015 Offer in the areas where Amat had brand new properties for sale (2017) USEFUL SURFICE

HOUSING Nº

AVAILABLE FLATS

Sant cugat

16

47

135 SQM

556.293 €

4.495

Sant just

5

39

96 SQM

314.832 €

3.648

sant feliu

3

6

79 SQM

266.800 €

3.474

Badalona

20

85

78 SQM

274.625 €

3.577

5

26

88 SQM

332.374 €

3.906

107

605

79 SQM

495.054 €

6.291

l’Hospitalet Barcelona

AVERAGE PRICE

REPERCUSSION €/USEFUL SQM

CITY

Some interesting data and must following up Energy certificates: 32.5% E; 9.7% D; 7.56% G; 7.2% A 65% of the market is in the hands of small developers, though an important fact: 2016 and 2017 have been the entry of new elements in the market, many are real estate funds. For finishing Keep in mind that we are in a good moment. Today the construction sector accounts for 4% of GDP, in Europe it is 6-7%. Remember that hi In the moments of euphoric market before the crisis represented 13%. In France, 3 homes are built for every 1,000 inhabitants, in Spain we are in 1 housing, that is to say that there is a path.


BRAND NEW PROPERTIES. Prices Amat Immobiliaris Data Brand new property sales on the map has been the most active segment of 2017. By 2016 it meant for us the great change in the market, especially with regard to the volume of sales, and 2017 has been even better, we have found one year with continuity of projects and the beginning of new important commercializations. One of the main differences with respect to 2016 is that in 2017 important sales have been added a little further away from the city of Barcelona.

On the attached maps you can see the main points of brand new developments that we have had outside the city of Barcelona and also the prices we have sold in the city in 2017. Outside the city, it is necessary to take into account also some locations within the same population. For example, in Sant Just Desvern we have marketed in two very different areas of the population, the average weighted value of the population is 3.219 € / sqm built, but if we separate it, in the center of the town we are at € 4,892 / sqm and at Mas Lluí area at € 3,149 / sqm.

brand new housing repercussion in barcelona MARESME

VALLÈS ORIENTAL

VALLÈS OCCIDENTAL

MATARÓ SANT CUGAT

EL MASNOU BADALONA RCELONÈS RC È

3.219 €/sqm

3.084 €/sqm

2.789 €/sqm

L’HOSPITALET

2017 2016 2015 2014 2013

BAIX LLOBREGAT GARRAF

Amat office

3.923 €/sqm 3.237 €/sqm 2.874 €/sqm 2.463 €/sqm 2.665 €/sqm

6.173 €/sqm 5.479 €/sqm 7.044 €/sqm 4.174 €/sqm 4.294 €/sqm

HORTA GUINARDÓ

SARRIÀ ST. GERVASI

LES CORTS

6.270 €/sqm 5.966 €/sqm 6.150 €/sqm 4.864 €/sqm 5.239 €/sqm

GRÀCIA

2017 2016 2015 2014 2013

3.885 €/sqm

SANT JUST

ALT PENEDÈS

2017 2016 2015 2014 2013

3.001 €/sqm

NOU BARRIS

ST. ANDREU

EIXAMPLE 2017

SANTS MONTJUÏC

CIUTAT VELLA

4.219 €/sqm

ST. MARTÍ Diagonal Mar

2017 2016

4.926 €/sqm 5.785 €/sqm

Data in €/sqm

If there is one thing to stand out those are the sales rates, which have been very high, with an average of 8 properties per month The other highlight is the evolution of prices within the same project from the beginning of sales to the completion of the sales of the project itself. In the great commercializations begun in 2016 and finalized in 2017 the average increase

between initial prices and final prices has been 21%. We think that this is not reproducible in this magnitude systematically because in some cases some of the projects that we are marketing already start from higher initial prices and, what is clear, is that the price has a roof since the country’s economic structure is very clear and has its limits.

MARKET REPORT

3.536€/sqm

9


NEW BUILDING - Typology of properties Amat Immobiliaris Data The typology of brand new properties sold in 2017 is very specific, 52% have a built area of between 90 and 120 sqm, 54% have 3 rooms and we emphasize that 84% have a terrace.

One of the great differences with respect to the type of second-hand property is the Energy Rating. 100% of the new buildings are between A and B. It should be noted that the promotion sector has made a clear commitment to this issue.

Tipologia immobles venut OBRA NOVA 1% 12% 120-180 sqm

1% 20 % 54 % 23 % 2%

>180 sqm

52%

35%

90-120 sqm

< 90 sqm

35 % HOUSING

4 DORM.

65 % HOUSING

3 DORM.

0 % HOUSING

NEW BUILDING - Buyer profile Amat Immobiliaris Data

Younger buyer: 50% are under 40 years old. A worker profile predominates compared to the manager, businessman and liberal professional who is predominant in the 2nd Hand.

public servant

0 % HOUSING

energy certificate

There are other characteristics of the of brand new property buyer’s profile that vary according to the project. For example, in L’Hospitalet de Llobregat, Badalona and Mataró the vast majority of buyers are from the nearest neighborhood, while in Sant Just Desvern, Sant Cugat de Vallès and El Masnou we find a type of buyer of more mixed origin , where people from around the world mix with people who leave the city of Barcelona.

44%workers 15%

13% 8% retired >60 years 5% freelancer 22%

21%

19%

businessmen

50-60 years

50%

<40 years

40-50 years EDAT DEL COMPRADOR

3%

HIGH LEVEL PROFESSIONAL

To finish the analysis of the Brand New market, we analyze the effort that families must make to buy a home. In 2016, the Bank of Spain considered that it was necessary for 6.7 years of gross household income to access a home, this figure increases to 7 years by 2017 (until September) and, in our case, sales of 2017 places this figure at 7.58. We are worried that this trend is upward, as it clearly indicates that there is a problem, although from our point of view it is more a problem of incomes than of housing prices. It also reinforces what we said previously, and it is clear that the economic ceiling of the demand is limited and not too far.

investor

NATIONALS

AMERICA

EUROPA

AFRICA

94%

3%

2%

1%

ORIGIN OF THE BUYER

Effort for the Purchase of the House (Spain) Property price/Anual gross income 8 6 4 2 0

Source: Bank od Spain, Real Estate Market indicators 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*

FINANCEMENT MARKET REPORT

0 % HOUSING

1 DORM.

Planned operations to be financed

10

0 % HOUSING

Many come from the rent and it is the 1st property.

We consider it interesting to discuss the differences between the buyer of brand new and the second hand properties:

perfil comprador obra nova

0 % HOUSING

2 DORM. Number of bedrooms Requested

requested

77%

> 4 DORM.


AMAT LUXURY Amat Immobiliaris Data In 2017 the prime market has had two phases and two zones with different behavior, so we will try to do an analysis by zones. If we look at the market outside the city of Barcelona, and for us basically it is Sant Cugat del Vallès and Sant Just Desvern and its surroundings, in 2017 it has been a good year where the recovery has been gradually consolidated. In terms of operations, it is not very significant compared to Barcelona, but it is important in terms of the amount of housing sold and rented are usually houses of high level with absolute market values. In this case, the client profile is combined between foreign and local.

TE EN R LD

WHAT DO WE EXPECT FOR 2018? Well it’s very hard to say. Overall, we expect a steady year but with a more moderate growth than in 2017. The low offer for sale and rent properties will be the constant in 2018, although we expect less difficulties in some areas because the end of brand new construction housing will generate this type of offer. We believe that this will be an important market balance in 2019.

At Brand New market we expect a good year of sales in the Metropolitan Area and new projects in areas further away from Barcelona. And we are waiting for a complicated year for rent, where access to housing will be one of the key issues that must be resolved as a society.

MARKET REPORT

SO

SO

LD

R

EN

TE

D

From our point of view it is still early to draw too many conclusions, and we have not seen any change in prices. How will it evolve will be something that we will see in 2018.

D

On the other hand, in Barcelona city has been a complex year for many reasons and the high-level market is probably the most resentful. One of the main reasons for this resentment is that the decision of many foreigners to

invest in Barcelona has been postponed or canceled due to all the negative external factors that have surrounded the city, especially from the 2nd semester of this 2017. This is combined with a city market that is very dependent on foreign investment, especially in the central neighborhoods. And with this basically we want to say that both the Second Hand and the Brand New properties, in most cases, is valued thinking more of an foreign buyer than in the local market. In the same way that the reforms, rehabilitations and new projects where the product is very focused by type to this type of buyer. These are two limiting factors of local demand, especially the price, and when foreign demand fails, it does not find a substitute.

11


LOCAL EXPERTISE WITH INTERNATIONAL PROJECTION

Barcelona · Via Augusta, 1-3 · Sant Cugat del Vallès · Av Rius i Taulet, 17 · Sant Just Desvern · Bonavista, 63

Member of

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