• Key City Performance: Barcelona

    July, 2023

Barcelona has been ranked the ninth most favorable European city for real estate investment, underlining its potential for lucrative opportunities in real estate. With its thriving economy, strategic location, and robust tourism industry, Barcelona presents a promising opportunity for investors seeking long-term value and returns in real estate.

The second biggest city in Spain after Madrid, Barcleona holds a prominent position in both GDP and population. With a staggering GDP of €93 billion and a total population of 1.65 million (metropolitan population of 5.6 million), Barcelona has established itself as a regional and European powerhouse.

One of Barcelona’s key advantages is its strategic location, making it the leading city in terms of exports. This advantage is due to its good port and logistical connections. Barcelona’s total exports compared to Madrid showed large differences, €74 billion and €55.2 billion, respectively. Such a significant gap in export performance positions Barcelona as an exceptionally attractive location for logistics companies given its excellent connectivity and the abundance of established businesses in the area. The total investment in Logistics amounted c. €35 million in the first four months of the year.

Another notable aspect of Barcelona’s economy is its thriving tourism sector. The city’s stunning beaches, favorable climate, and rich cultural heritage contribute significantly to its local economy. Lately, Barcelona has successfully attracted luxury hotel brands such as Grand Hyatt. Additionally, Panoram Hotel Management and Hilton have announced the opening of the new Hotel Via Sants Barcelona Tapestry Collection by Hilton, the brand’s second hotel in Spain and the first in Catalonia.This strategic focus on developing high-end tourism infrastructure adds an extra layer of appeal to investors interested in Barcelona’s Hospitality market, as the city remains one of the most relevant places in Spain to invest in luxury Hospitality. As an example, the latest major deal closed was the sale of the Mandarin Hotel to the Saudi fund Olayan for an estimated c. €200 million.

With a first quarter with a total of over €500 million of investment in all sectors, it is worth noting that offices took the first position in terms of investment. They represented a total of 37% of the investment, amounting to over €185 million. Thereafter came Multifamily with 32%, Hospitality with 19%, Logistics with 7%, and Retail with 5%.

Barcelona’s real estate experienced an increase in demand in the residential sector, with a total investment of c. €170 million during the first quarter of this year. These achievements in the residential sector can be attributed to the city’s consistently growing demand and a supply that struggles to keep pace. Looking ahead, strong international demand, the continuous growth of the technology industry, and a shortage of housing supply, all contribute to a positive outlook for the Catalan capital.