Culture, History, and Business
Situated on the Mediterranean coastline, Barcelona, a city of more than 5 million residents, is setting world standards when it comes to culture, tech development, and business opportunities. It’s one of the world’s first smart cities and a leader in capital innovations, separating itself as one of the most developed global cities in the world.
The tourist, economic, historical and cultural attractions it hosts earned it the title of the 4th most economically powerful city by GDP in the European Union in 2008, and the GDP keeps on increasing by 3.10% as we enter 2020. Although the monthly costs of living of 707 USD for 1 person without rent are among the highest in all of Spain, Barcelona is still the city that offers the best quality of life for employees, which still makes it one of the prime locations for opportunity seekers, both work and investment-wise.
It’s no secret that Barcelona has become a hub for startups, new technology, and real estate investments in the past few years. As a bridge between Europe and Northwest Africa and a link with Latin America, it’s one of the prime European targets for investors. In addition, the ever-growing community of foreigners coming to Barcelona for either work, life, or pleasure sets a great stage for real estate investors to fetch low risk – high reward properties.
Foreign investments are one of the major influencers in the real estate market in Barcelona and rental yields are what draws them to Barcelona. Rent prices can go from 788 USD for a 1 bedroom apartment in the outskirts of the city to 1,027 USD for the same property in the city center. Considering property prices can go up to 4,742 USD per sqm, rent is always the more affordable option, which is why most people opt to rent. This is the reason why Barcelona has one of the safest rental yields of 4%-5%, a ratio investors wouldn’t like to miss.
If you’re interested in why Barcelona is the right target for your real estate investment and which neighborhoods to look at, we will discuss more into details about these topics in our following articles.