The B side of Barcelona’s real estate appeal

BarcelonaThe data indicates that 2022 has been a good year in the real estate sector, but it has been especially so in the luxury housing segment, according to data from various specialist agencies. The reasons are various. The first is that geopolitical and economic uncertainty has diverted investments towards a sector that is considered a safe haven in times of crisis. And the second is that, with the euro/dollar parity, many American buyers have jumped to look for opportunities in this sector. The luxury housing boom goes beyond traditional areas such as the Costa Brava (Cadaqués, Begur, etc.) or towns such as Sitges or Castelldefels, and has been particularly strong in the city of Barcelona.

Experts indicate that the Catalan capital has become a favorite destination for these investors who are looking for houses with a value of a minimum of half a million euros and a maximum of 20, and that although before the purchases were concentrated in the upper part, they have now spread to other more central areas of Barcelona such as the Eixample (where there are modernist flats that are real architectural gems) or even Ciutat Vella. There is no doubt that, despite the bad omens, Barcelona’s international appeal remains undeniable. As an example, the sixth position of the Catalan capital in the ranking drawn up by the prestigious consultancy Resonance, only behind London, Paris, New York, Tokyo and Dubai.

Barcelona occupies the sixth position in the ranking of cities by the consultancy Resonance, only behind London, Paris, New York, Tokyo and Dubai

But this international success of Barcelona also has a B side for the city where, as shown by the survey published today by the ARA, housing is one of the main concerns of the citizens (and the first in half of the districts ). The arrival of foreign money to invest is one of the factors that push prices up, both for buying and renting, and which are causing more and more families to have problems accessing housing. This is not a phenomenon exclusive to Barcelona or Catalonia, and this is demonstrated by the fact that the Canadian government has just banned foreigners from buying housing in its territory as an exceptional measure to try to puncture the real estate bubble that is being created.

The survey also states that there is a general consensus in the city in favor of regulating the price of rents, which is now pending the law negotiated by the PSOE and Unides Podemos. Equally, it must be emphasized that the only long-term solution to solve this problem is the construction of a large stock of public housing, which serves at least so that young people can emancipate themselves and for families with few resources, at least until that they can pass on the free market.

If important decisions are not taken in this regard, Barcelona is in danger of suffering from the phenomenon of some neighborhoods in London, which are owned by Russian or Middle Eastern tycoons, but which, because they do not usually live there, are a kind of ghost town . If Barcelona wants to maintain precisely the personality that has made it one of the most successful cities in the world, it must first ensure that its inhabitants can live there.