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CBRE: A Third Of Barcelona’s New Homes In 2017 Will Be Luxury Properties

20 December 2016 – La Información

One third of the 764 new homes that are going to be built the city of Barcelona in 2017 will be luxury, according to data from the real estate consultancy CBRE, which reveals that most of the property development activity in the city will be centred around: El Eixample (439 homes), Sants-Montjüic (126) and Sant Martí (100). The consultancy also forecasts a gradual increase in prices.

The Director of the CBRE office in Barcelona, Anna Esteban (pictured above), explained at a press conference on Monday that the new luxury homes are not only being constructed in the upper area of the city, but also in the centre and along the sea front, in line with the significant demand from international investors.

The Vice President of CBRE in Spain, Enrique Martínez Lagun, noted that this demand for high standing homes is linked to the attraction of international companies, which consider that Barcelona offers a very good price-quality relationship.

Esteban revealed that “several large multinational companies will announce that they are moving some of their operations to Barcelona” in 2017, although she pointed out that they will have trouble finding the large spaces that they need. As such, she predicts that there will be some major renovation projects in the Catalan capital to meet demand, given that there are insufficient plots of land available to build from scratch.

The city is planning to build around 200,000 m2 of office space over the next few years, although 100,000 m2 of that space has already been committed to clients, which means that the other half is still available. The area that is expected to see the most significant growth is the 22@ district, where 65,000 m2 of space is under construction, one project is due to be started and four others are being assessed. The current stock of office space there is practically full and rents are similar to those charged in the city centre. (…).

Essential renovations along La Diagonal

Esteban also said that Paseo de Gràcia has lost 80,000 m2 of office space over the last few years, due to changes in the use of properties towards more profitable activities, such as retail, residential and hotels. She calculates that more than 60% of the office buildings on the Avenda Diagonal thoroughfare require major renovations to adapt them to current demand and ensure that they do not become obsolete. She also predicts that the Plaza Europa and Almeda Park area will see higher occupancy rates and rents once the 22@ area has become more established.

The lack of supply to meet the high demand for offices has meant that Barcelona has seen the highest increase in rental income in Spain in recent years, up by 21% since 2014. Rents are forecast to grow by a further 7% in 2017, making it the second European market in terms of forecast rental growth, behind Madrid.

For the Catalan logistics sector, CBRE forecasts a 5% increase in rents in 2017, following growth of 8% since 2014, making it the highest ranking European market in terms of rental growth in this segment. (…).

Original story: La Información

Translation: Carmel Drake