Looking for the latest information on the Barcelona property market in the first half of 2023? Below, we’ll take a look at what’s happening in the Barcelona property market from January to June 2023.
The first half of 2023 saw the property market in Barcelona navigating the effects of the broader global economic landscape. The market has proved resilient, with demand remaining relatively stable. This resilience can be attributed to the city’s diverse appeal, as well as the Spanish government’s measures to support the real estate sector during challenging times. However, the rise in interest rates and the increase in the cost of credit required to purchase a home are still making a dent in the property market.
Home sales across Spain as a whole fell 6.4% in May in year-on-year terms, marking the fourth consecutive month of decline. In total, 56,137 transactions were closed in May, according to the most recent data published by the National Institute of Statistics (INE). This annual decrease is somewhat less pronounced than the one registered in April, however, when the fall was 8.1% in relation to the previous year.
The slowdown was especially noticeable in the case of second hand properties, where operations registered a decline of 8.6%, with a total of 45,479 transactions taking place in May 2023 (81% of all transactions), while new housing transactions increased by 4.1%, reaching 10,658 operations (19% of all transactions). It should be noted that the comparison is being made with 2022, the year that marked the highest number of transactions in the last fifteen years.
In positive news, when comparing the month of May to the month of April, property sales experienced a significant increase of 29.6%, being the highest rise for a month of May since 2017. The number of sales carried out in May (56,137) was the second best monthly number in 2023, only surpassed by the 56,372 sales in January.
Looking at the total number of sales in the first five months of the year (the latest data published by INE), the year-on-year decrease was 4.1%, with a decrease of 2.4% in sales of new properties and 4.5% in sales of second hand properties.
Real estate market of the Province of Barcelona
Examining the property sales within the province of Barcelona, the trends mirrored the national ones, with property sales falling by 6.6% year-on-year in May 2023, again registering the fourth consecutive month of decline. As with the national figures, the decline is significantly less than in April 2023 when the year-on-year decrease was 15.5%. It also must be noted that as with the national trend, the number of sales transactions increased by 31.6% from April 2023 to May 2023, with the 5,908 sales registered in May 2023 being the highest monthly figure since September 2022.
The number of second hand properties exchanging hands in the province of Barcelona in May 2023 (4,854) registered a year-on-year decrease of 7.8%, whilst those of new properties (1,054) only registered a minimal decline of 0.6%.
Looking at the total number of sales in the first five months of the year in the province of Barcelona, the year-on-year decrease was 5.3%, with a decrease of 5.3% in sales of new properties and 5.4% in sales of second hand properties.
Real estate market in Barcelona city
According to the latest figures from the Generalitat de Catalunya, however, the number of property transactions in the first quarter of 2023 within the city of Barcelona itself grew by 2.1% when compared to the same quarter in 2022, with almost 4,000 sales being registered from January to March. The desirable district of Gràcia registered the highest increase, where sales in the first quarter of 2023 rose by 59.3% when compared to the first quarter of 2022. Five of the city’s ten districts registered decreases, however.
– Gràcia: 344 sales (59.26% increase)
– Nou Barris: 409 sales (20.29% increase)
– Barcelona Old Town (Ciutat Vella): 386 sales (19.88% increase)
– Sants-Montjuïc: 516 sales (8.40% increase)
– Horta-Guinardó: 339 sales (3.04% increase)
– Sant Martí: 580 sales (4.61% decrease)
– Sant Andreu: 300 sales (9.91% decrease)
– Sarrià-Sant Gervasi: 298 sales (10.78% decrease)
– Eixample: 598 sales (12.83% decrease)
– Les Corts: 159 sales (19.70% decrease)
Barcelona Property Prices
According to leading property portal Idealista, the average property price across the city as a whole ended the second quarter of 2023 on €4,131 per square metre, an increase of 3.3% on the average price at the end of the same quarter of 2022. Average prices at the end of June 2023 in all of the city’s ten districts registered an increase when compared to prices at the end of June 2022, although prices in only four districts (Eixample, Gràcia, Les Corts and Sarrià-Sant Gervasi) were higher than the pre-pandemic prices of June 2019.
As Barcelona evolves, so do the preferences of buyers and investors. During the first half of 2023, there has been a noticeable shift in preferred locations within the city. Whilst areas like Barcelona Old Town and Gràcia have long been popular, neighbourhoods such as Sant Antoni in the district of Eixample and Poblenou in the district of Sant Martí have gained traction. The rejuvenation of these districts, along with improved infrastructure and amenities, has made them attractive prospects for both residential buyers and commercial investors.
– Sant Martí: €3,804 per square metre (5.78% increase)
– Nou Barris: €2,510 per square metre (5.68% increase)
– Sants-Montjuïc: €3,523 per square metre (5.38% increase)
– Gràcia: €4,491 per square metre (5.00% increase)
– Barcelona Old Town (Ciutat Vella): €4,286 per square metre (4.72% increase)
– Horta-Guinardó: €3,152 per square metre (3.21% increase)
– Eixample: €4,891 per square metre (2.75% increase)
– Sarrià-Sant Gervasi: €5,553 per square metre (2.02% increase)
– Sant Andreu: €3,137 per square metre (0.71% increase)
– Les Corts: €4,945 per square metre (0.41% increase)
Average prices in Barcelona City continue to remain higher than those in Madrid City, where the average price across the city as a whole was €4,015 per square metre at the end of June 2023.
Barcelona Rental Prices
According to Idealista, rental prices continue to show significant increases in all of the city’s ten districts. Across the city as a whole, average rental prices rose by 15.4%, ending the second quarter of the year on €18.7 per square metre. The vibrant district of Gràcia registered the highest rise, ending the second quarter on €18.8 per square metre, a year-on-year increase of 18.2%. During the first half of 2023, the Spanish government introduced several policies to regulate the property market and maintain housing affordability. Stricter regulations on short-term rentals and the implementation of rent controls aim to stabilise rental prices for residents.
– Gràcia: €18.8 per square metre (18.24% increase)
– Eixample: €20.0 per square metre (17.65% increase)
– Sant Andreu: €15.0 per square metre (14.50% increase)
– Horta-Guinardó: €15.1 per square metre (14.39% increase)
– Sarrià-Sant Gervasi: €19.5 per square metre (14.04% increase)
– Nou Barris: €14.4 per square metre (13.39% increase)
– Barcelona Old Town: €21.2 per square metre (12.77% increase)
– Sant Martí: €19.0 per square metre (12.43% increase)
– Sants-Montjuïc: €16.7 per square metre (12.08% increase)
– Les Corts: €17.3 per square metre (9.49% increase)
In conclusion the first half of 2023 showcased the Barcelona property market’s ability to weather challenges and maintain its appeal as an attractive real estate destination. Looking ahead, the Barcelona property market is expected to continue its growth, driven by a combination of factors such as lifestyle changes, economic recovery and sustainable urban development.