Are you looking for the latest information about the evolution of the real estate market in Barcelona in the first quarter of 2024? Below, let’s take a look at what’s happening in the Barcelona property market from January to March 2024.
The latest data from Spain’s National Institute of Statistics (INE) shows that 152,020 properties changed hands in the first quarter of 2024, registering a 5.6% decrease compared to the same period in 2023. It is important to contextualise this decline, considering that 2023 was the second-best year of activity since 2007. Therefore this reduction signifies an adjustment to more normal levels following the previous years’ surge in activity, rather than a market slowdown.
In 2023, the year began with almost 56,000 monthly sales but ended with just under 37,000, primarily due to market stabilisation and rising interest rates. However, although the number of sales in the first quarter of 2024 has decreased compared to 2023, experts predict increased relative activity as 2024 progresses, driven by the easing of interest rates. Since the Euribor peaked last October, it has stabilised around 3.7%, prompting banks to adjust their mortgage offerings and present attractive products for homebuyers, thereby sustaining strong demand.
Decline in sales
A less significant decline was seen in the province of Barcelona with 15,785 properties sold in the first quarter of 2024, a decrease of 3.8% on the number of sales in the same period in 2023. The number of sales of new homes in the first quarter of 2024 was similar to that in the first quarter of 2023, showing only a minor decrease of 0.2%. Meanwhile, sales of second hand properties fell by 4.5%.
We are yet to see whether the sales in the city of Barcelona itself have shown an annual decrease in the first quarter of 2024 when compared to the same period in 2023 (as the data from the Generalitat de Catalunya is not yet available). However, it can be noted that only two of the city’s ten districts registered an increase in the number of total sales throughout the whole of 2023 when compared to the previous year, with an increase of 17.18% in the district of Sant Andreu and an increase of 5.6% in Barcelona Old Town.
– Barcelona Old Town: -1,362 sales (5.58% increase)
– Eixample: 2,565 sales (6.28% decrease)
– Gràcia: 1,182 sales (9.15% decrease)
– Sant Martí: 2,104 sales (11.34% decrease)
– Les Corts: 589 sales (16.34% decrease)
– Sarrià-Sant Gervasi: 1,119 sales (21.03% decrease)
– Sant Andreu: 1,187 sales (17.18% increase)
– Horta-Guinardó: 1,417 sales (6.90% decrease)
– Sants-Montjuïc: 1,764 sales (7.21% decrease)
– Nou Barris: 1,485 sales (8.73% decrease)
Prices continue to rise
Based on data from leading property portal Idealista, the average price per square metre in Barcelona reached €4,317 by the end of the first quarter of 2024, registering an increase of 6.25% compared to the end of the first quarter of 2023.
At the end of the first quarter of 2024, nine out of the city’s ten districts registered an annual increase in average property prices. The prestigious district of Eixample registered the highest increase (9.82%), with an average price of €5,325 per square metre, the second highest in the city. The desirable district of Sarrià-Sant Gervasi again maintained its position as the district with the highest average property price, ending March 2024 on €5,666 per square metre. The only district that showed a decrease was Nou Barris, where average prices ended March 2024 on €2,386 per square metre, an annual decrease of 1.32%.
– Eixample: €5,325 per square metre (9.82% increase)
– Sant Martí: €3,923 per square metre (58% increase)
– Gràcia: €4,696 per square metre (20% increase)
– Les Corts: €5,275 per square metre (33% increase)
– Barcelona Old Town: €4,332 per square metre (84% increase)
– Sarrià-Sant Gervasi: €5,666 per square metre (44% increase)
– Sants-Montjuïc: €3,610 per square metre (24% increase)
– Sant Andreu: €3,229 per square metre (83% increase)
– Horta-Guinardó: €3,170 per square metre (22% increase)
– Nou Barris: €2,386 per square metre (32% decrease)
Rental prices continue to increase substantially in all of the city’s ten districts. Across the city as a whole, the average rental price ended March 2024 on €20.7 per square metre, an increase of 12.50% compared to the end of March 2023. The highest rise was in the district of Horta-Guinardó where prices rose by 16.67%, ending March 2024 on €16.8 per square metre.
This was followed by the popular district of Les Corts, the vibrant Gràcia district and the diverse neighbourhood of Sants-Montjuïc, where prices increased by 15.29%, 14.61% and 12.35% respectively. It is yet to be seen how the new rental law will affect rental prices, but it is likely it could have a fairly significant impact.
Horta-Guinardó: €16.8 per square metre (16.67% increase)
Les Corts: €19.6 per square metre (15.29% increase)
Gràcia: €20.4 per square metre (14.61% increase)
Sants-Montjuïc: €19.1 per square metre (12.35% increase)
Barcelona Old Town: €23.3 per square metre (12.02% increase)
Sarrià-Sant Gervasi: €21.1 per square metre (11.05% increase)
Nou Barris: €15.5 per square metre (10.71% increase)
Eixample: €21.9 per square metre (10.05% increase)
Sant Andreu: €15.8 per square metre (9.72% increase)
Sant Martí: €21.0 per square metre (8.81% increase)
Foreign buyers
According to data from the Spanish Land Registry (Registradores), Catalonia continues to attract a significant number of foreign buyers. In the first quarter of 2024 it was the fifth most popular region in terms of the share of foreign buyers, only surpassed by the Balearic Islands, the Valencian Community, the Canary Islands and the region of Murcia.
The province of Barcelona registered an interannual percentage of 13.32 when analysing the foreign market share, significantly larger than in Madrid where it was 6.35%.
“Foreign investment in Barcelona’s real estate market continues to play a significant role. Overseas investors are looking for high end properties with outside space in prime locations such as the historic city centre, close to the beachfront or overlooking the city. In addition, Barcelona is expected to get a big boost during 2024 due to the America’s cup which starts in August through to October and will attract tens of thousands of new visitors to this every popular, dynamic city”, according to Francisco Nathurmal, CEO and founder of Bcn Advisors.
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