Now we can see the process of recovery of Spanish economy after the crisis in 2009 when the country’s GDP grew so slowly as never before. The process of recovery started in 2012 and since then it has been showing a good rate each year. If talking about Catalonia, we should mention its GDP is the highest among other parts of the kingdom while the rate of unemployment in Barcelona is almost the lowest in Spain. Last year unemployment level was 3.7% lower than that of the country.
But it is difficult to make any long-term predictions concerning Spanish economy as it is still showing relatively high level of unemployment and low incomes of working people if to compare to other European countries, for instance, in Germany incomes are 86% higher than they are in Spain.
Spanish and Barcelona's property market shows steady increase mainly because of low interest rates which are especially low in Catalonia. Mortgage rates of the European Union depend on EURIBOR, an average rate for interbank credits given in euros. The down-trend have started in summer 2014 and in autumn of that year it had its first negative value while in crisis time it was above four percent.
If you are not a citizen of Spain you can get a mortgage loan at two-and-a-half percent per annum and it will cover up to 60 % of the property you are going to buy. If property for sale, say, in Barcelona is bought by a local, the loan can cover even 80% of its cost and the annual rate will not exceed one-and-a-half percent.
As Barcelona citizens’ incomes are higher than those in the rest of Spain, property for sale in Barcelona (city centre mainly) is more expensive, to be more accurate the price for one square meter was two-and-a-half times higher than last year national average. And keep in mind, the prices are still growing. The growth is rapid, about six percent faster than in 2016. This value is probably the highest in the kingdom. But despite this fact, the prices are lower than those of pre-crisis period, so we can consider some potential for growth.
Last year also showed some increase in Barcelona rental payment which average month value was about 17.9 EUR per m2; and it is 19% higher than that of the pre-crisis period (2007) and 57% higher than that of 2013 when the rental payments showed their minimums.
In 2015 – 2016, Barcelona property prices became 14% higher, while Barcelona rental payments showed 17% increase.
In 2008 – 2012 we saw the situation when the property supplies exceeded the quantity demanded greatly but then the situation changed, and slow growth of demand became a trend. The biggest gap between the amount of transactions with new-builds and the construction volume was shown in 2014 when it reached 111%. But, two years later it was just 1%. But do not worry, this means that first the volume of transactions became 2.1 times higher, and then the construction volume went up 1.9 times.
Now we can observe gradual Barcelona population recovery after its decrease of 2014. Since then the quantity of the city’s citizens became 0.4% bigger and amounted 1,608,000 in 2016, whie the population of the country did not grow since 2012.
If talking about private consumption in Barcelona, we can see its steady growth from 2013. In 2015 the consumption reached the volume of 22.88 billion EUR; the increase shown was 5.4%. The Barcelona City Council reported this figure 14% higher than the national average. The level of unemployment has steadily been falling since 2013 when it reached its maximum (23.7%). Last year this figure was 14.4%.
The first rule of looking for property to buy in Barcelona is that you can afford to purchase it. If this is the case then you’ll find the right property for sale in Barcelona by understanding these basic rules:
It is simple fact of life that everything gradually rises in price. Property is no different although sometimes it can rise far quicker than other prices.
When you consider the average price rise for a property in Spain is 13.5% over the last 6 years you can see that this is a good indication of the future. If you look for property to buy in Barcelona today than it is likely to be worth more in a few years.
Property for sale in Barcelona can give you the opportunity to reduce your tax bill. Any interest you’re charged can be deducted from the income you declare to the taxman; reducing you tax bill! Of course, the exact amount you’ll save will depend on the value of the property to buy in Barcelona, your mortgage and a host of other personal information.
There are many opportunities for property to buy in Barcelona but at the moment the interest rates are exceptionally low. This means you’ll pay very little on what you borrow! You might even be able to pay it off early!
The ultimate goal for most people is to own their own property. There is a simple reason for this; you no longer need to waste money paying a landlord. Anything you spend on a Barcelona property for sale is ultimately going to boost your own wealth.
In addition appreciation can boost your wealth or even just paying the mortgage can increase the amount of funds you have available if you decide to sell.
As your property increases in value and you pay your mortgage the value of your equity will increase. This means that if you need funds you can always borrow against this equity. It might even provide you with the opportunity to start your own business! It is worth noting that loans secured against property generally have very low interest rates, especially in the current climate.
While it’s great that a landlord will take care of all repairs and other issues in your home what is not so great is the chasing and waiting involved. This will no longer be an issue when you have chosen a Barcelona property for sale. As long as you pay the mortgage you can live there as long as you want!
When you look for property to buy in Barcelona you need to remember that you’ll be able to redecorate it as you wish. There is no need to ask permission. You can paint the inside any color you want and as often as you want! You can’t do that when you’re renting!
When you rent you might get a yard but probably not. But choosing the right property for sale in Barcelona will give you your own piece of the great outdoors. Whether you want to start gardening, barbequing or simply relaxing you can!
There is no better feeling that that you get when you are part of a community. Within a short space of tie you can get to know your neighbors and contribute to the area. This will give you a great support network and a sense of belonging. This is not generally so common when you rent.
The community will also listen to you because you’re a permanent addition. You can also contribute to local societies and people will know you’re likely to stay, because you took the time to find the right property to buy in Barcelona.