Evolution of the Barcelona real estate market: Q3 2023

Looking for the latest information on the Barcelona property market in the third quarter of 2023? Below, we’ll take a look at what’s happening in the Barcelona property market from July to September 2023.

 

The property market in Spain recorded a 23.7% drop in real estate transactions in the month of September when compared to the same month in 2022, marking the eighth consecutive month of decline. Data provided by the National Institute of Statistics (INE) reveals the largest decrease since mid 2020, amid the pandemic’s peak, when the market was impacted significantly due to mobility restrictions.

According to INE, 44,086 properties changed hands in September, representing the lowest volume for this month since 2020. Compared to August, transactions experienced a drop of 10.5%. From January to September this year a total of 457,424 homes have been sold, reflecting an 8.5% year-on-year decrease. Analysts suggest that the market might end the year with a total number of properties sold lower than in 2022, although projections anticipate that this number could still exceed 550,000.

The increase in interest rates by the European Central Bank (currently at 4.5%), coupled with a market that is reluctant to reduce their prices significantly, has no doubt contributed to the sector’s current downturn.

Experts emphasise the need to contextualise these declines, however, pointing out that they are being compared to a year of exceptionally high activity in 2022 when the total number of sales reached over 650,000, something not seen in 15 years. It is also important to note that in the first three quarters of 2023, there was a 17.8% increase in property sales compared to the same period in 2019.

INE statistics show that new home transactions in the first three quarters of 2023 fell by 4% year-on-year, reaching 86,296 transactions from January to September. This decline is attributed to both the increase in financing costs and the shortage of homes for sale. Second hand property transactions, which represent more than 80% of the market, decreased by 9.5% with 371,128 property sales from January to September this year.

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Real estate market of the Province of Barcelona

No autonomous community escaped negative records In September this year and the trends observed in Barcelona Province mirrored those at the national level. An analysis of property transactions within the province revealed a 28.6% decrease in the number of properties changing hands in September 2023 compared to the same month last year. However, in comparison to August, the decline was a more modest 1.8%. Year-to-date until September, a total of 45,322 homes have been sold, reflecting an 11.8% year-on-year decrease. It is worth emphasising once again, however, that in the first three quarters of 2023 there was a 5.7% increase in home sales compared to the same period in 2019.

The decline in property transactions extends to new homes in Barcelona Province, where there was 11.1% drop in sales with 7,698 properties changing hands from January to September. A comparable decrease is observed in the resale market, where a total of 37,624 second hand properties were sold during the same period, reflecting a decline of 11.9%.

Real estate market in Barcelona city

Contrary to the broader trend, the latest figures from the Generalitat de Catalunya reveal a positive trajectory in property transactions within the city of Barcelona itself during the first three quarters of 2023. There was a notable 4.1% growth when compared to the same period in 2022, with 8,195 transactions registered from January to September 2023, up from 7,783 in the corresponding period of 2022. The sought-after district of Gràcia experienced the most significant surge, with a 33.3% increase in the number of sales, followed by Barcelona Old Town (23.6%), Nou Barris (19.2%) and Sant Andreu (15%). Only four of the city’s ten districts recorded decreases in property transactions.

– Gràcia: 709 sales (33.27% increase)

– Barcelona Old Town (Ciutat Vella): 770 sales (23.60% increase)

– Nou Barris: 844 sales (19.21% increase)

– Sant Andreu: 613 sales (15.01% increase)

– Sants-Montjuïc: 978 sales (2.62% increase)

– Eixample: 1,395 sales (2.35% increase)

– Horta-Guinardó: 735 sales (1.61% decrease)

– Sant Martí: 1,122 sales (6.81% decrease)

– Les Corts: 336 sales (10.64% decrease)

– Sarrià-Sant Gervasi: 619 sales (17.02% decrease)

Barcelona Property Prices

According to property portal Idealista, the average property price across the entire city ended the third quarter of the 2023 on €4,155 per square metre, an increase of 1.4% on the average price at the end of the same quarter of 2022. Average prices at the end of September 2023 in all but two of the city’s ten districts also registered an increase when compared to prices at the end of September 2022, and prices in five districts (Eixample, Gràcia, Horta-Guinardó, Les Corts and Sarrià-Sant Gervasi) were higher than the pre-pandemic prices of June 2019.

– Horta-Guinardó: €3,249 per square metre (4.98% increase)

– Barcelona Old Town (Ciutat Vella): €4,329 per square metre (3.91% increase)

– Sants-Montjuïc: €3,551 per square metre (3.83% increase)

– Eixample: €5,019 per square metre (2.72% increase)

– Les Corts: €5,080 per square metre (2.17% increase)

– Sant Martí: €3,792 per square metre (1.47% increase)

– Gràcia: €4,500 per square metre (0.78% increase)

– Sarrià-Sant Gervasi: €5,562 per square metre (0.62% increase)

– Sant Andreu: €3,154 per square metre (0.82% decrease)

– Nou Barris: €2,400 per square metre (1.03% decrease)

Average prices in Barcelona City continue to surpass those in Madrid City. At the end of September 2023 the average price stood at €4.037 per square metre in Madrid City, while in Barcelona City it was €4,155 per square metre.

Barcelona Rental Prices

According to Idealista, rental prices in all ten of the city’s districts continue to experience significant increases. Across the city as a whole, average rental prices rose by 18.4%, ending the third quarter of the year on €20 per square metre. The up-and-coming district of Sant Martí saw the most substantial rise, reaching €20.8 per square metre by the end of the third quarter, reflecting a year-on-year increase of 23.8%.

– Sant Martí: €20.8 per square metre (23.81% increase)
– Gràcia: €19.8 per square metre (21.47% increase)
– Sants-Montjuïc: €18.5 per square metre ( 17.83% increase)
– Eixample: €20.9 per square metre (17.42% increase)
– Barcelona Old Town (Ciutat Vella): €23.1 per square metre (17.26% increase)
– Nou Barris: €14.8 per square metre (15.63% increase)
– Sant Andreu: €15.6 per square metre (15.56% increase)
– Horta-Guinardó: €15.8 per square metre (12.86% increase)
– Les Corts: €18.2 per square metre (12.35% increase)
– Sarrià-Sant Gervasi: €20.0 per square metre (11.73% increase)

In conclusion, the Spanish real estate market faces a considerable challenge, marked by rising interest rates, resistant prices and the inevitable comparison with an exceptional year in 2022. Experts, however, are confident in the market’s ability to adapt to the changing economic landscape over time.

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