In the current economic situation, rising interest rates and inflationary pressures, many people will think twice before buying a home. Especially in Madrid and Barcelona - the places with the highest real estate prices.
The real estate market is going through a very unstable time, which is reflected in the purchase of houses. The increase in interest rates implemented by the European Central Bank has slowed down the demand for real estate due to rising housing prices and greater difficulties with access to mortgage loans due to the current economic context.
However, if you are thinking about buying a property in Barcelona and are not sure about it because of the big crisis that the country is going through right now, we will explain what will happen in 2023 in the Barcelona real estate market.
Here are 8 keys to understanding the Barcelona real estate market, according to a guide prepared by the consulting firm BCN Advisor:
1. Real estate transactions in Barcelona will fall in 2023
Real estate transactions in Barcelona are falling every quarter: from 4,089 in the first quarter of 2022 to 3,880 in the third quarter.
2. Mortgage interest rates will continue to rise
The European Central Bank (ECB) raised interest rates to 2% for the first time in 11 years, which was the largest increase in the history of the ECB. Most Spanish mortgage companies link their interest rates to Euribor, which rose from -0.48% in January to 2.6% in October.
3. Prices for second-hand housing will stabilize in 2023
Housing prices in Barcelona have been declining since September 2022, from an average of 4,121 euros per square meter to 4,076 euros in November 2022.
4. Prices for new housing will rise
In 2023, prices for new housing will rise, while prices for secondary housing will fall or stabilize. This situation has already taken place in 2022.
5. The luxury real estate market will also grow
Prices in the most expensive areas of the Catalan capital continued to rise at the end of last year. According to BCN Advisor, house prices in Les Courts have been rising month after month since August and reached 5,023 euros per sq.m. in November 2022.
6. The technology industry will boost Barcelona's real estate market
By October 2022, Spain had received 13 billion euros investment in real estate. The sale of office space accounted for 1.2 billion euros, and only three transactions accounted for more than half of these investments.