In 2017, Spain became the world’s second most popular tourism destination, Catalonia was the most visited region within Spain, which makes it attractive to invest in the holiday rentals market. Holiday rental homes are one of the most profitable investment options in Spain.
“Tourism was dealt with from a comprehensive perspective, in other words, as an inherent and inseparable part of the city.”
Would it be a good move to invest in an apartment in Barcelona?
If you are interested in investing in an apartment in Barcelona, is a great time to do it, tourism is rising in the city as are holiday rental revenues. Well managed holiday rentals can have a great development in the market.
Why should you invest?
Since six years ago, every year, more tourists have visited Spain than in the years before, most notably in Barcelona. International visitors expenditure in Barcelona has gradually risen in recent years, in line with the increasing volume of tourists arriving in the city. Although most visitors travel to Barcelona for leisure or vacation purposes, business travelers made up over a fifth of visitors in 2017. Barcelona’s appeal as a travel destination is evident.
Since the number of international visitors is continually rising, this becomes a great opportunity for investors as there is not much instability on holiday rentals, it is also a great opportunity to increase your earnings.
There are very important things you should know before buying and investing an apartment in Barcelona for holiday rental. You need to know these things so you are able to invest correctly, so it is worth it and profitable.
- It's impossible to get new touristic licences in Barcelona
But, no need to be scared of, this only means that the apartment would needs to have a license already when you buy it.
Since licences are limited to be granted in Barcelona by the PEUAT regulation, which strictly controls the implementation and management of tourist apartments, seeks to reconcile the implementation of touristics stays with a sustainable urban model. Consequently, the Town Hall they divided the city into 4 zones. To understand this new paradigm of licenses it is necessary to know these areas are measured according to the proportion of tourist apartments and the number of places offered.
- There is no fixed price
When buying an apartment its price depends on the location (whether is a very famous location because of its popularity on attractions for tourists), the size of the apartment and how good it looks when you buy it (if it is too damaged or in great conditions).
So, this means there is no fixed price on buying the apartments but the average is about €100.000, this would be an accepted average cost of a licence. If you want to check a little more on this specific point you can click the following link to read an article that talks about it.
Would it be worth it to invest in an apartment in Barcelona?
Yes, it is totally worth it to investment in an apartment in Barcelona.
Why? Since touristic apartments can be great investments with high revenue! It is also a closed market since there are no new apartments, because no new licences can be approved. This means that it keeps the rentability of the apartments with licence pretty high.
Airbnb platform has helped hosts in Barcelona to have revenues 35% higher than the ones reached by hotels in the last 4 years.
Airbnb and el Ayuntamiento de Barcelona agreed on removing illegal apartments from their platform, removing more than 2,500 apartments according to Airbnb. Airbnb is also using their platform to control new hosts by sharing first all the legal information to be able to list their apartment into the platform.
To own an apartment with touristic license is a privilege.
As we mentioned before, touristic apartments is a closed market and uprising, becoming more profitable as the years go by as Barcelona tourism keeps increasing. Keeping the offer of Holiday Rentals to the minimum that is legal, is good for all owners of apartments with a licence. Today, there are 9,600 apartments with license, which means this number can not go up from these for authorised rental apartments number, which means, that once all illegal apartments are removed, the worth of this apartments with license is higher than before, which is good for the owners.
On top of that, all the indicators seem to show that the demand for touristic apartments is steadily growing, and that this should not stop anytime soon. But, to make sure that your investment is profitable you have a great work of due diligence. You must make sure that the licence is valid, and that their has not been any problems with the neighbours as well, since it might jeopardise the touristic activity.
Remember, Barcelona is working to become a sustainable city, which includes sustainable tourism. This means, respecting locals during the tourism activities. Locals might feel uncomfortable sometimes with having a holiday rental apartment in their building, but if you have a great holiday rental management company, that will not be a problem at all.
Property Management Companies have to know how to take care of the locals and how to take care of the guests, to keep both sides equally happy and satisfied. Locals must be respected on their demands for low noise or any other wrong activity that might happen when the agency don't control their guests. On the other, all the arrangements needs to be done to give guests the the best holidays possible.
If you are interested in investing in a touristic apartment it is a great idea to ask to professional in the sector so they can help you know what would be the expected ROI for the apartment you will be investing in. Considering the selling price, and the expected revenues. Which the expected ROI could be anywhere from 2%, up to 10%, and even more.
Are you planning to buy a holiday rental in Barcelona, but are not sure about the possible return on your investment? Click in the following link to get a revenue forecast now.