Market Report Spain & Andorra 2019

Market Report 2019-20
Spain and Andorra



MARKET REPORT 2019-20 · SPAIN AND ANDORRA 00

INDEX

06

World Economic
Outlook

09

Real Estate in Spain

05 Editor’s Note
16 Real Estate Market Trend in Spain
132 Andorra

4 | Market Report 2019-20 Spain and Andorra

EDITOR’S NOTE

Juan-Galo Macià

The balance sheet of the real estate sector in 2019 did to recession. Interest rates are lower than at any period
not meet expectations. Although it was not a bad year, in Spain’s modern history, while banks are especially
political and economic uncertainty affected the housing willing to grant credit. That’s a great formula for a strong
market, causing a drop in home sales in June and July, preventative medicine.
when a new mortgage law came into full effect.
That being said, in 2020 the market’s behavior will be
Housing prices rose by 4% while sales dropped by 3,3%. different than in previous years. It is possible that big
The belief among many Spanish households that Spain’s capital, which was the driving force behind the market's
economy would soon undergo a recession, strongly improvement, will no longer be so and that economic
contributed to this decrease in sales. However, no such uncertainty will cause investment to be withdrawn. The
recession took place in 2019 and no international organi- demand for investment will therefore be lower than in
zation believes one will affect our country before the previous years.
conclusion of this report.
At Engel & Völkers, we are ready to face the future of
Generally speaking, my current view is no different real estate with confidence and strength. As a well-or-
than the one I held last year. It is my opinion that the ganized company, we are more than capable of adapting
housing market in Spain is still in its expansionary phase. to the shifting tides. Whereas before we enjoyed smooth
Nevertheless, within a phase of expansion there are some sailing, this year we will be pushing forward of our own
fluctuations, with periods that are excellent, others that accord. Our dedication to ensuring client satisfaction is
are good, and some that are simply stable, the latter what will continue to achieve the excellent results we
of which would apply to 2019, and, according to our value. The demand for housing has not disappeared, it
forecast, to 2020. I disagree with the analysts who think has simply changed. Fortunately, we possess the expertise
we are now approaching the transition from expansion required to accomodate the needs of our potential clients.

Juan-Galo Macià
CEO of Engel & Völkers in Spain, Portugal and Andorra

Editor’s Note | 5

Current Situation

Global Economy

In 2020, the world economy will maintain its moderate The impact caused by the coronavirus will affect all
growth rate of 2-3%, against 2.9% from last year. Its regions. The United States is the only developed country
development will be heavily conditioned by the impact that will reach a growth of 1.9% to 2%, whereas the euro
from the coronavirus, counteracting positive factors such zone will not reach 1%, and Japan will see no growth at
as the easing of commercial tensions between the United all, and might even enter a recession. Regarding China,
States and China, an orderly Brexit, and an accommoda- a decrease from around 6% to less than 5% is predicted.
tive monetary policy.
In any case, the world economy will be capable of a swift
International organizations warn that the situation is fra- recovery and see its growth increase by more than 3% in
gile, and advocate extreme caution with regards to the 2021. This will happen if the virus is successfully con-
full extent of the epidemic which started in China. Both tained and if tax or monetary measures are implemented.
the International Monetary Fund (IMF) and the Organi- Although monetary policy remains expansionary, extraor-
sation for Economic Cooperation and Development dinary measures by the world’s central banks, such as
(OECD) have assessed the downward trends in their eco- maintaining financing costs at a minimum and injecting
nomic forecasts for 2020. The IMF has announced that liquidity, are not ruled out.
the world’s economic growth could decrease by 0.1%
and 0.2% as a result of the disease’s extent. The OECD GDP Growth
has warned that the growth of the world economy could
be reduced by 1.5% in 2020, which is half of what was 4,5 Percentage Variation %
forecast last November, if the epidemic is not stopped.

4

3.5

3

2.5
2011 12 13 14 15 16 17 18 19 20 21 22 23 24

Grupo de Cuatro World

Source: IMF
Footnote. Grupo de Cuatro = China, eurozone, Japan and US

6 | Market Report 2019-20 Spain and Andorra

Spain’s Economy

A low growth profile marked by global economic uncer- decline in investment and public consumption. While we
tainties for the better part of 2020, will condition the can count on an upturn in some areas of private consump-
development of Spain’s economy. According to forecasts, tion, it will not be sufficient to compensate for the degree
it will grow from around 1.5%-1.6%, against 2% in 2019. of moderation expected with regards to the domestic
demand.
The external sector will stop contributing to Spain’s
growth due to deteriorating world trade. Export will be The impact of the coronavirus on the economy could
weakened while imports will increase at a rate consistent result in the downturn hitting its lowest point by the
with the demand, but not lesser than the demand, which middle of the year. In the second half of the year, we will
is what happened in 2019. see a rebound in activity as a consequence of the impro-
vement expected in the exterior sector, which will entail
The lower growth rate will also be conditioned by dete- greater growth in the Growth Domestic Product (GDP),
rioration in the internal sector. We are expecting to see a ranging between 1.7% and 1.9% in 2021.

The Evolution of the GDP in Spain

Inter-annual variation %

5

0

-5

Source: INE (National Statistics Institute)
2007T3
2007T4
2008T1
2008T2
2008T3
2008T4
2009T1
2009T2
2009T3
2009T4
2010T1
2010T2
2010T3
2010T4
2011T1
2011T2
2011T3
2011T4
2012T1
2012T2
2012T3
2012T4
2013T1
2013T2
2013T3
2013T4
2014T1
2014T2
2014T3
2014T4
2015T1
2015T2
2015T3
2015T4
2016T1
2016T2
2016T3
2016T4
2017T1
2017T2
2017T3
2017T4
2018T1
2018T2
2018T3
2018T4
2019T1
2019T2
2019T3
2019T4

National and External Demand

Contribution to annual growth in terms of GDP volume

6 0,4 2,2 1,9 4,3 3,1
-0,1 -0,9 1,8 1,2
4 4,0 1,5 0,1 0,6
2010 2014 1,0
2 -0,1 -0,9

0 -5,3

-2 2011 2012 2013 2015 2016 2017 2018 2019

-4

-6

-8
-10 -8,2

2009

Domestic Demand Foreign Demand Source: INE (National Statistics Institute)

World Economic Outlook | 7

Inflation could recover this year at an inter-annual rate
of around 1.3% by December. However the impact of the
coronavirus on the economy and on the price of petrol,
will be stronger in the first part of the year, giving an
average annual rate of 0.8%.

The lower dynamics of the economy will also be reflec-
ted in the labor market. The creation of employment will
slow down, even though more than 800,000 net jobs will
be generated in the next three years. This year the rate
of unemployment will decrease to around 13.5% and in
2021 to 12.3%.

The main problem for the Spanish economy continues
to be the public deficit, whose reduction will be minimal
during this period, remaining well above the target. The
public debt is also concerning, as it is above 95% of the
GDP, causing the price of financing to rise should interest
rates become normalized.

Rate of Inflation in Spain

Year-on-year change %

1,5 1,5
1,3

1,1 1,1
1,0

0,8 0,5 0,4 0,8

0,4 0,3
0,1 0,1

0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2020

Source: INE (National Statistics Institute)

Unemployment Rate in Spain

%

28

7

Source: INE (National Statistics Institute)

8 | Market Report 2019-20 Spain and Andorra
2007T3
2007T4
2008T1
2008T2
2008T3
2008T4
2009T1
2009T2
2009T3
2009T4
2010T1
2010T2
2010T3
2010T4
2011T1
2011T2
2011T3
2011T4
2012T1
2012T2
2012T3
2012T4
2013T1
2013T2
2013T3
2013T4
2014T1
2014T2
2014T3
2014T4
2015T1
2015T2
2015T3
2015T4
2016T1
2016T2
2016T3
2016T4
2017T1
2017T2
2017T3
2017T4
2018T1
2018T2
2018T3
2018T4
2019T1
2019T2
2019T3
2019T4

Real Estate Sector in Spain

Current Situation

In the context of an economic slowdown after 5 years of Therefore the real estate market foresees a favorable evo-
consecutive growth, the real estate market showed the lution this year, but with regards to prices and sales, the
first signs of decline in 2019. Data from the National pace of progress will be moderate, and we will also see
Statistics Institute (INE) register a drop in sales by 3.3% a progressive adjustment.
compared to last year, with a total of 501,085 operations
completed. Prices have maintained an upward trend, Historically, the development of the real estate sector
although at lesser intervals than in the last three years. paralleled the economic cycle. In the current deceleration
phase, we can expect moderate growth in the following
Along with the economic and political uncertainty, the years. In any case, analysts see the risk of a real estate
real estate sector was affected last year by the changes bubble given that current prices are still below those rea-
implemented to regulate rent and enforce the Real Estate ched during the crisis by 20%.
Credit Law. Experts think these factors will cease to have
further repercussions in the market once agents become Number of Registered Home Sales
accustomed to the new environment.

In the thousands

518,0 501,1

467,6

405,4

355,6

426,3 408,2

384,4

278,6 330,3

77,0 75,1 83,2 91,7 92,9
2017 2018 2019
2015 2016

New Used

Seal Estate in Spain | 9

Financing

The interest rates and financial conditions will continue
to be favorable for a prolonged period due to policies set
forth by the European Central Bank. Experts don’t predict
a rise in interest rates during the second half of 2021. In
fact, the market is awaiting a revision of the ECB’s mone-
tary policy strategy, predicted to be finalized during the
aforementioned period.

2019 was the Euribor’s fourth consecutive year of nega-
tive growth, which is not forecasted to rise above 0%
within the next two years. Its lowest point was recorded
last August to have an average of -0.356%, after which
it rose by the end of the year to an average of -0.261%.

Taking the last 12 months as a reference, the index regis-
tered a drop of -0.132 points. This meant that 30-year
mortgages of 150,000 euros, with a Euribor differential of
+0.99%, which will need a revision, undersold by 104.64
euros for its annual payment compared to the same month
last year, or, in other words, by 8.72 euros a month.

By midyear, the Euribor’s slow upward trend could cause
mortgages to become more expensive if they are revised,
as the rates in 2020 will not be as negative as in 2019.

Last Year’s Euribor

0,00% -0,261%
-0,05%
-0,10%
-0,15%
-0,20%
-0,25%
-0,30%
-0,35%
-0,40%
-0,45%
-0,50%

DIC-18
ENE-19
FEB-19
MAR-19
ABR-19
MAY-19
JUN-19
JUL-19
AGO-19
SEP-19
OCT-19
NOV-19
DIC-19

Source: Bank of Spain

10 | Market Report 2019-20 Spain and Andorra

Financial Position of Spanish Households

Spanish families currently enjoy a healthy economic stan- Furthermore, in the third quarter of 2019, according to the
ding. The net wealth of households, obtained by deducting National Statistics Institute (INE), the household savings
financial liabilities from total assets, was at 1.57 trillion rate was at 6.4%, removing seasonal and calendar effects.
euros in the third quarter of last year. This figure marks This figure is 1.4 points less than in the previous quarter.
a historical high point, representing a 7.1% increase com- Spanish households spent more than they earned, and, not
pared to the same period from the year before. It is equal including seasonal effects, families in Spain registered
to 127.4% of Spain’s gross domestic product. The ratio savings at -1.3% of their disposable income. Between July
between the two amounts shows an increase of 4.1 per- and September, household disposable income amounted
centage points against the previous year. to 176,055 million euros, a 3.1% increase, while expendi-
tures rose by 2.5% up to 177,132 million.
According to data from the Bank of Spain, the balance of
financial assets from Spanish homes reached 2.33 trillion Household Savings
euros, which is 4.7% more than the previous year. This Percentage of Quarterly Gross Disposable Income
increase was the result of a net acquisition of 53 billion
in financial assets, due primarily to a rise in the price of Corrections of Seasonal and Calendar Effects
equity assets. Regarding the GDP, financial assets of Spa-
nish households constituted 189.4% at the end of the third 15 7,0
quarter in 2019, an increase of 1.8 points compared to the 12,1 6,4
year before. The bulk of household financial assets was 10,7
in cash and deposits (39% of the total), followed by equity 5,4
holdings (27%), pension funds and insurance (17%), and 10 8,9
mutual fund shares (14%). 6,2

On the other hand, household debt stood at 708,499 5 5,3 4,3
million between July and September 2019, in line with
what was recorded in the same period in 2018. This level 0
of debt accounts for 57.4% of the GDP, a long way from
the 85% registered in 2010. -5
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: INE (National Statistics Institute)

Property Ownership of Spanish Families
(Data in a million of millions of euros)

8
7
6 5,463
5
4
3
2 1,57
1
0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Net Financial Wealth Real Estate Wealth

Source: Engel & Völkers with information from the Bank of Spain and Inverco

Seal Estate in Spain | 11

Price Development

In line with a curbed demand, last year’s prices saw a The 10 most expensive
moderated growth. The appraised price of free housing in municipalities in Spain
2019 amounted to 1,653 euros/sqm, constituting a 2.1%
increase, the slowest growth rate registered in the last three (euros/sqm)
years, according to data from the Ministry of Transport,
Mobility and Urban Agenda. This amount is the highest San Sebastián 3.811,1
seen since the last quarter of 2011, but it is also slightly Ibiza 3.809,9
more than 20% lower than the maximum reached in 2008, Santa Eulalia del Río 3.711,5
when the real estate boom was in full swing. Sant Cugat del Vallès 3.474,6
Barcelona 3.387,4
The regions which registered the greatest increase in pri- Madrid 3.332,9
ces were the Balearic Islands (6.7%), Navarre (6.1%) and Pozuelo de Alarcón 3.322,1
Madrid (4.9%), whereas the largest decrease took place Castelldefels 3.191,7
in Cantabria (-2.2%), La Rioja (-1.9%), Extremadura Calvià 3.126,4
(-1.2%), Asturias (-0.5%), Murcia (-0.3%), and Castilla Majadahonda 3.033,3
La Mancha (-0.2%).
Source: Ministry of Development
By province, again the Balearic Islands, Navarre and
Madrid showed the most growth, along with Valencia
(4.1%), Las Palmas (3.8%) and Biscay (3.5%). The lar-
gest decrease by province took place in Soria (-8.7%),
Palencia (-7.8%), Lleida and Cáceres (both by -2.8%)
and Albacete (-2.6%).

Regarding municipalities with more than 25,000 inhabi-
tants, the highest prices were seen in San Sebastián, Ibiza
and Santa Eulalia del Río (Ibiza), all of which were above
3,700 euros/sqm.

In turn, the latest available data from the INE's Housing
Price Index (HPI) (which refers to house purchases)
corresponding to the third quarter of 2019 showed an
annual increase of 4.7%, six tenths less than in the pre-
vious quarter and the lowest annual percentage in the last
three years. By type of housing, both the annual rates for
new and second-hand housing decreased six tenths as
compared with the previous quarter, standing at 6.6%
and 4.4%, respectively.

12 | Market Report 2019-20 Spain and Andorra

IPV Annual Rate

General index, new and second-hand property. Percentage

10,4

8,0

7,0 7,2 6,6 6,8 7,2
6,3 6,8 6,6
5,7 5,7 6,1 6,4 6,2
5,3
4,7

5,0

4,4

T1 T2 T3 T4 T1 T2 T3

2018 2019

General Index New-builds Second-hand

Source: INE (National Statistics Institute)

Experts point out that both prices and sales should see a overvalued housing markets. One forecast is based on the
decline in the following years, but without dropping by a fact that price levels, indebtedness, and the financial effort
significant amount except in certain urban centres with of Spanish families, are still moderate.

Average property price per square metre (€/sqm)

2.200

2.000

1.800

1.600

1.400

1.200

T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
T4
T1
T2
T3
T4

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: The Ministry of Development

Seal Estate in Spain | 13

Mortgages and Purchases

The new Mortgage Law that came into force last June The average value of signed mortgages amounted to
marked an important development in mortgages in 2019. 125,007 euros, 0.6% more than in 2018, while capital
The effects of the law were felt in August and September loans from financial institutions reached 44,717 million
even as the market returned to normal. In fact, the num- euros, a 3.3% increase. The communities with the highest
ber of home mortgages transacted shot up by 43%, rea- number of home mortgages in 2019 were in the Commu-
ching 30,285 in the last month of the year, according to nity of Madrid (69,616), Andalusia (67,845) and Cata-
the provisional figures from the National Statistics Ins- lonia (57,787). The most amount of loans were given in
titute (INE). This means that a total of 357,720 home these communities for mortgages.
mortgages were secured during the last period, a 2.7%
increase compared to 2018. The increase was the lowest Fixed-term mortgages are gaining ground. In December
seen since 2014, although this is the sixth consecutive they constituted 44% of all mortgages compared to 41.4%
year of growth and the best annual turnout since 2011. in the same period of the year before. The average rate
of interest for mortgages at the end of last year was 2.20%
for variable rates (a 9.1% decrease), and 3.06% for fixed
rates (a 2.6% increase).

For their part, the Association of Property Registrars
shows that the average contract period of mortgages is
279 months (23 years and three months), a decrease of
about 2.11%. The average monthly mortgage payment
in the fourth quarter of 2019 was 604.09 euros. The effort
made by Spanish households to pay off their mortgages
and interest rates reached around 31% of their disposable
income, which is lower than what was seen in 2008, when
it amounted to over 50%.

The highest average of monthly mortgage payments were
registered in the Balearic Islands (924.04 euros), the
Community of Madrid (876.69 euros) and the Basque
Country (636.24 euros).

Registered Home Mortgages

1.600.000

1.400.000

1.200.000

1.000.000

800.000

600.000

400.000

200.000

0 2016 2017 2018 2019
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: INE (National Statistics Institute)

14 | Market Report 2019-20 Spain and Andorra

After five years of growth, the buying and selling of homes Registered property sales based
declined last period by 3.3% to 501,085 purchases, accor- on the buyer’s nationality
ding to the INE. This decline is due to the contracting of Year 2019
second-hand flats, which fell by 4.2%, while sales of new
homes increased by 1.2% to a total of 92,844, thus accu- Nationalities % % Foreigners
mulating three consecutive years of growth. All in all, the
2019 sales figure is the fourth best in the last 13 years. United Kingdom 1,74 13,94
France 0,98 7,85
Here are the percentages by autonomous community: Cas- Germany 0,89 7,12
tilla La Mancha (7.5%), Extremadura (5.7 %) and La Rioja Morocco 0,77 6,17
(3,1 %) registered the highest increase in buying and Belgium 0,73 5,83
selling, whereas the most pronounced decline was seen in Romania 0,73 5,87
the Canary Islands (-14 %), the Balearic Islands (-10,9 %), Italy 0,64 5,13
and Navarre Navarra (-9,7 %). Andalucía was the region Sweden 0,56 4,48
with the highest number of homes bought and sold China 0,49 3,97
(100.339 transactions), followed by Catalonia (79,751), Russia 0,40 3,20
the Valencian Community (74,910) and Madrid (70,835). Holand 0,34 2,74
Norway 0,23 1,87
The latest figures for the third quarter of 2019, taken from Polond 0,20 1,63
the Ministry of Development, show a drop in buying and Ukraine 0,19 1,56
selling by 4% to a total of 411,234 homes sold. Algeria 0,18 1,43
Ireland 0,16 1,30
Bulgaria 0,14 1,12
Denmark 0,12 0,96
Switzerland 0,11 0,87
Other 2,86 22,96
Foreigners 12,45% 100,00%

Nationalities 87,55%

TOTAL 100,00%

Source: Spanish Association of Registrar

Property Purchase by Autonomous Communities

Andalusia -1,1 %

Cataonia -2,4 % National Total
-4,9 % 2014 347.170
Valencian Community -7,5 % 2015 383.107
2016 436.574
Community of Madrid 2017 509.847
2018 410.883
Canary Islands -14 % 2019 501.085

Castile and León 0,5 %

Castilla-La Mancha 7,5 %

Basque Country -3,3 %

Galicia 2,5 %

Region of Murcia 1,2 %

Balearic Islands -10,9 %

Aragon -0,3 %

Principality ofAsturias

Extremadura

Cantabria
Chartered Community

of Navarre
La Rioja

0 10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000 90.000 100.000

Source: INE (National Statistics Institute)

Seal Estate in Spain | 15

16 | Market Report 2019-20 Spain and Andorra

Spanish
Residential Market


18 COMMUNITY OF MADRID
Madrid
Surroundings

34 CATALONIA
Barcelona
Surroundings
Costa Brava
Tarragona
Cerdanya

66 VALENCIAN COMMUNITY
Valencia
Castellón
Alicante - Costa Blanca

84 ANDALUSIA
Costa del Sol

92 NORTHEAST REGION IN SPAIN
Galicia
Asturias
Castile and León

102 NORTHERN REGION IN SPAIN
Basque Country
Navarre

112 CANARY ISLANDS
Tenerife

116 BALEARIC ISLANDS
Mallorca
Menorca
Ibiza

122 NEW BUILDS

Real Estate Market Trend Residencial Español | 17

Community of Madrid

Madrid

3.226.126 38.224 € 30.094 € 3.732 €/m² +1,3 %
Population or Number Average Disposable Average Price Interannual
Variation
of Inhabitants Gross Income Income 2019

The Spanish capital is the leader in attracting foreign experienced strong increases. Despite their upward
investments in the country. Madrid ranks as the fourth trend, prices are still far from the highest point recor-
most attractive destination in Europe for investing in ded in 2007, about 33% below.
real estate, according to Emerging Trends in Real
Estate Europe in 2019 by ULI and PwC. One of every The Community of Madrid registers the highest bank
five companies created in Spain has their offices in debt per square metre in the country. According to the
Madrid, and 72% of the 2,000 main Spanish compa- Spanish Association of Property Registrars, the debt
nies have their head offices in the city. reached 1,985 euros / sqm in the third quarter of 2019.

The entry into force of the new mortgage law along Madrid also holds the greatest amount of home mort-
with the moderation of economic growth have altered gage debt, reaching a sum of 202,426 euros / sqm. Its
the demand for homes in the whole country. In Madrid, longest average for periods of new mortgage contracts
while the real estate market remains strong with pen- was 307 months, 25 years and 7 months. The region
ding urban developments such as Madrid Nuevo Norte also holds the highest monthly mortgage rates, with an
(The New North Madrid), or the Programa de Actua- average of 873.90 euros in the middle of last year.
ción Urbanística (Urban Action Program) in southeast
Madrid. In the third quarter of 2019, housing sales in With regards to the average time to sell a property, the
the Community of Madrid reached 17,427 units, a figure has fallen over the last four years from an ave-
decrease by 3.57% compared to the same quarter the rage of 6.4 months required to sell a property to 3.6
year before, according to data from the Spanish pro- months at present. This figure is well below the 8.2
perty registry. months that Tinsa has on average in Spain.

Prices maintained some stability over the past year, According to Tinsa, the average gross return on a
with increases of less than 5%. Forecasts from Engel home for rent in the capital stands at 4.4%, although
& Völkers point to sustainable growth throughout 2020 this percentage varies considerably depending on the
with similar spikes in areas where there is still room district.
for improvement and a correction in those that have

18 | Market Report 2019-20 Spain and Andorra

Districts in the City of Madrid

Fuencarral - El Pardo

Hortaleza

Moncloa - Tetuán Barajas
Aravaca Chamartín San Blas

Chamberí Ciudad Vicálvaro
Salamanca Lineal
Moratalaz
Centro Retiro

Arganzuela

Latina Puente
de Vallecas

Carabanchel Usera

Villa de Vallecas

Villaverde

Prices in euros / sqm

1.000 €  1.500 €  2.000 €  2.500 €  3.000 €  3.500 €  4.000 €  4.500 €  5.000 €  5.500 €  6.000 € 
-  -  -  -  -  -  -  -  -  -  - 

1.500 € 2.000 € 2.500 € 3.000 € 3.500 € 4.000 € 4.500 € 5.000 € 5.500 € 6.000 € 6.500 €

Salamanca 6.370 Hortaleza 3.800 Carabanchel 2.825
Retiro 5.150 Moncloa - Aravaca 3.660 Villa de Vallecas 2.430
Centro 5.105 Arganzuela 3.585 Usera 2.170
Chamberí 5.095 Barajas 3.350 Moratalaz 2.040
Chamartín 4.725 San Blas 3.095 Puente de Vallecas 1.895
Ciudad Lineal 3.905 Latina 3.035 Vicálvaro 1.645
Tetuán 3.895 Fuencarral - El Pardo 2.960

Real Estate Market Trend · Community of Madrid | 19

District by district

Centro and Arganzuela

The urban planning modifications carried out in the cen- Palos de Moguer and Acacias are the neighborhoods in
tral district were decisive for the significant increase in highest demand, along with the residential area known
prices recorded in previous years. The expectation crea- as Metales, where most flat complexes are new gated
ted by the Canalejas complex and the pedestrianization housing projects offering community spaces such as pools
of the Gran Vía boosted the average price of the district and gardens. Younger clients still prefer the area closest
to 5,170 euros / sqm at the close of 2018. Since then the to the Matadero because it is well connected and offers
price fell by 1.3% in 2019 to around 5,100 euros / sqm. a variety of services.

The neighborhoods closest to these projects—Sol and Property Prices inCentro and Arganzuela
Universidad—is where a small decline was seen in the (Data in euros / sqm)
last year, whereas in other areas, such as Palacio and
Justicia, we saw a slight increase in prices of second- Justicia Minimum Maximum Average
hand homes. Cortes 4.496 7.826 5.524
Embajadores 4.324 6.915 5.261
The housing typology in highest demand are apartments Universidad 3.089 5.123 4.082
with more than two rooms, and a surface area between Palacio 3.825 5.783 4.529
80 and 150 sqm. Spanish clients constitute 68% of pur- Sol 4.102 6.520 4.901
chases compared to 32% of foreigners, among which the Acacias 4.493 4.500 4.400
majority are from Venezuela, France, Italy, the US, Palos de Moguer 4.100 5.090 4.595
England and China. Looking at purchases according to Latina 3.125 4.529 4.017
the client’s nationality helps determine their motives. Carabanchel 2.938 3.692 3.034
50% of them seek a primary residence, 40% are making 2.400 2.934 2.826
an investment, and only 10% of the purchases are for a
second residence.

In Arganzuela, buyers tend to be Spanish families, cons-
tituting 90% of all transactions. Among the 10% of
foreign clients, it is worth pointing out that the Chinese
clients comprise the majority.

20 | Market Report 2019-20 Spain and Andorra

Retiro Salamanca

In 2019, the average price of the six neighborhoods com- The 20.000 euros / sqm reached in the most exclusive
prising the Retiro district, surpassed 4,000 euros / sqm. areas of the district highlight both the buyer profile and
The top two were Jerónimos and Ibiza, both of them in the desired housing typology, in two of the most charac-
high demand due to their excellent location in front of teristic neighborhoods in Salamanca: Recoletos and Cas-
the capital’s most iconic park. tellana. Capacious and luxurious homes whose operations
are carried out by Spanish families and foreigners, both
The buyer profile in 2019 became more international. If with high purchasing power, in a ratio of 60% to 40%,
in 2018, the ratio of clients was 90% Spanish and 10% respectively.
foreign, in 2019, we found that 70% of the buyers to be
Spanish, and 30% international, the majority of which However, other neighborhoods in the district, such as
came from Mexico. Guindalera, offer more affordable prices, with an average
of about 4.440 euros / sqm. These neighborhoods join
the revival which Fuente del Berro already experienced
in previous periods.

After the surge of Venezuelans buying property in the dis-
trict for the past few years, in 2019 we saw that they’re
now the main people doing the selling. Mexicans continue
to purchase homes with a surface area of around 120 sqm.

The stately street known as Alfonso XII is the main artery
of the Jerónimos neighborhood, and it continues to be
preferred by foreigners with a high purchasing power,
who seek houses with an area larger than 200 sqm, in
classical buildings. Meanwhile, wealthy Spanish families
opt for the neighborhoods Ibiza and Niño Jesús.

Property Prices in Retiro Property Prices in Salamanca
(Data in euros / sqm) (Data in euros / sqm)

Jerónimos Minimum Maximum Average Goya Minimum Maximum Average
Ibiza 4.750 9.580 7.520 Lista 3.740 8.155 6.300
Pacífico 5.470 6.521 5.890 Castellana 3.378 7.745 6.299
Niño Jesús 3.900 4.280 4.120 Recoletos 4.360 21.420 7.664
Adelfas 4.543 4.831 4.687 Guindalera 4.575 23.850 8.959
Estrella 3.909 4.347 4.189 Fuente del Berro 2.480 6.580 4.441
3.697 4.472 4.136 2.170 9.400 4.545

Real Estate Market Trend · Community of Madrid | 21

Chamartín Chamberí

Homes of around 145 square metres distributed among In 2019 we saw a drop in prices by around 2% with a
three bedrooms are typically in high demand in the city’s volume of operations similar to the previous period. It
financial district. 80% of all purchases are carried out by is worth pointing out that most sales were made for
Spanish clients compared to the 20% by foreigners. Of properties under a million euros. 85% of the purchases
the latter, last year we saw a notable rise in transactions were carried out by Spaniards looking for 145 sqm
involving Mexicans and North Americans. homes, with three bedrooms, preferably penthouses.
60% of the buyers financed their homes with mortgages
Buyers mainly look for a main residence 84% of the time, compared to 40% using their own resources. 15% of
which they acquire using their own resources and through the international clients, made up of primarily Venezue-
financing. Then a meager 8% of the purchases are for lans, French, Belgians, and Mexicans, sought remode-
investment purposes, and another 8% of buyers seek a led properties in classical buildings at prime locations
second residence. like Almagro, Trafalgar and Ríos Rosas.

Due to the excellent ratio of quality to price found in the Of these three aforementioned neighborhoods, the
properties, this district boasts some of the most coveted second and third have become the most highly deman-
residential areas in the city centre, such as El Viso, Nueva ded due to their slightly greater degree of affordability
España, and Hispanoamérica. in comparison to the first. Therefore, the average price
in Almagro surpasses 5,500 euros / sqm, while Trafalgar
and Ríos Rosas remain beneath this figure, with a diffe-
rence of little more than the 4,000 euros / sqm charged
in Vallehermoso.

Property Prices in Chamberí
(Data in euros / sqm)

Property Prices in Chamartín Almagro Minimum Maximum Average
(Data in euros / sqm) Trafalgar 4.095 7.100 5.598
Ríos Rosas 3.352 5.120 4.236
Minimum Maximum Average Arapiles 3.215 5.210 4.213
2.889 7.417 5.273 Gaztambide 3.021 5.500 4.261
2.941 5.548 4.652 Vallehermoso 3.410 5.212 4.311
3.596 6.898 4.694 Argüelles /Moncloa 3.220 5.115 4.168
2.800 5.618 4.711 2.825 5.520 4.173
1.335 5.309 4.452
Viso 3.800 5.206 4.591
Nueva España
Hispanoamérica
Castilla
Prosperidad
Ciudad Jardín

22 | Market Report 2019-20 Spain and Andorra

Tetuán Fuencarral

In the adjacent district known as Tetuan, Cuatro Caminos The residential neighborhoods comprising Madrid’s nor-
is the area claiming the highest demand. It is in fact quite theast region, are in great demand by families interested
similar to Castillejos in both the type of properties offered in spacious homes with an area greater than 120 sqm
and the price range. distributed among at least three bedrooms. However, the
type of property varies according to the nationality of the
Then you have Valdeacederas, Almenara and Berruguete client. While Spaniards prefer flats, foreigners seek either
undergoing a rising trend due to their proximity to the terraced or single-family homes.
Caleido Tower, Madrid’s fifth skyscraper. Their average
price stands below 3,300-3,500 euros / sqm.

The housing typology in highest demand is a flat with three
bedrooms distributed over an area of 180 sqm. These flats
are usually financed with a mortgage and purchased to be
used as primary residences.

Property Prices in Tetuán We have seen a lot of foreigners joining the common
(Data in euros / sqm) buyer purchasing in Mirasierra, most of whom are Ger-
mans who’ve moved to Madrid since the German
Cuatro Caminos Minimum Maximum Average College was established in Montecarmelo. Fuencarral
Castillejos 5.800 3.200 4.500 is a young district which, aside from its German com-
Bellas Vistas 5.800 3.200 4.500 munity, attracts families with children that are younger
Valdeacederas 4.100 2.900 3.500 than in areas such as Mirasierra, Fuentelarreina or the
Almenara 4.400 2.700 3.550 neighborhood known as El Pilar.
Berruguete 4.500 2.100 3.300
4.300 2.300 3.300 Peñagrande is also a good option for the young buyer,
especially after the major renovation carried out, so that
it now offers terraced and single-family units at affor-
dable prices.

Property Prices in Fuencarral
(Data in euros / sqm)

Mirasierra Minimum Maximum Average
Montecarmelo 2.650 4.259 2.960
Peñagrande 3.351 4.606 4.192
Fuentelarreina 2.261 4.500 3.380
La Paz 2.727 3.292 3.000
El Pilar 2.600 4.600 3.600
2.200 4.200 3.200

Real Estate Market Trend · Community of Madrid | 23

Moncloa - Aravaca

Even though Spaniard comprise 85% of all purchases, In Aravaca and in the housing project called El Plantío,
more and more clients buying in this district are interna- maximum prices have remained at around 7,800 euros /
tional. Of the remaining 15% who are international sqm, although a slight decline in the average price has
buyers, the main nationalities we find are Venezuelans, been registered in purchases.
Mexicans, and a growing presence of French and Bel-
gians in Moncloa-Arguelles, along with some Chinese. Property Prices in Moncloa - Aravaca
(Data in euros / sqm)
The kind of property preferred by all of them are ample
homes with four bedrooms, in flats with more than 150 sqm Argüelles Minimum Maximum Average
of surface area, or detached houses of around 300 sqm. Ciudad Universitaria 3.532 6.109 4.815
Specifically in the prestigious area known as Puerta de Hie- Valdemarín 2.856 3.225 3.041
rro, Spanish families tend to prefer flats, whereas foreigners Aravaca 2.091 7.375 4.465
opt for semi-detached, terraced, and single-family units. El Plantío – La Florida 1.803 7.754 3.790
Puerta de Hierro 1.250 7.800 2.693
Argüelles holds its status as the most premium area in 1.751 3.785 2.900
Moncloa, with prices reaching 6,000 euros / sqm. It is
located by the emblematic places like Parque del Oeste
and Temple of Debod.

24 | Market Report 2019-20 Spain and Andorra

Ciudad Lineal Hortaleza

Although It is one of the largest in Madrid, a unique Hortaleza is a very extensive district to the west of
feature is that the entire district is structured around one Madrid, in which you can see numerous contrasts
street: Arturo Soria, the main artery running through between the types of homes and the profiles of inves-
several highly different areas. tors. With prime areas like Piovera, where you find
extremely high-quality buildings and excellent services,
In the northern area you can find neighborhoods resisting you also get affordable prices in neighborhoods like
depreciation, such as Costillares, Atalaya, Colina and San Santiago Apóstol.
Pascual, where the average price stands at around 4,000
euros / sqm. While during the crisis in the previous decade, Palomas represents one of the most valued areas in the
these areas took the longest to suffer from lowering prices, district. Its prices are more moderate than in Piovera, but
they were also the first to go up during the recovery. with high quality homes. For their part, Canillas, Pinar
del Rey and Santiago Apóstol are attractive neighbor-
Quintana, Ventas and Pueblo Nuevo are located in the hoods to investors. You can find excellent well-connec-
southern area, where average prices approach around ted flats to rent out, which allow high returns within the
2,000 euros / sqm, with the neighborhood Concepción surrounding M-40 freeway.
representing the intermediate area with regards to both
price and the type of property.

In 2019 Ciudad Lineal experienced a large volume of
sales whose average prices have stayed the same in an
environment of light decline. The properties built are of
high quality and the setting’s abundance of trees and
green spaces make Ciudad Lineal one of the most inte-
resting areas in Madrid for investment.

Property Prices in Ciudad Lineal
(Data in euros / sqm)

Costillares Minimum Maximum Average Property Prices in Hortaleza
Atalaya 2.575 5.200 3.888 (Data in euros / sqm)
Colina 3.557 4.700 4.129
San Juan Bautista 2.200 5.417 3.809 Palomas Minimum Maximum Average
San Pascual 3.302 4.117 3.710 Piovera 2.894 4.211 3.553
Concepción 2.300 5.123 3.712 Canillas 4.125 5.003 4.564
Quintana 2.412 4.720 3.566 Pinar del Rey 2.895 3.189 3.042
Ventas 1.923 3.321 2.622 Santiago Apóstol 2.256 2.784 2.520
Pueblo Nuevo 1.258 3.050 2.154 2.199 2.687 2.443
1.850 2.520 2.185

Real Estate Market Trend · Community of Madrid | 25

Sanchinarro, Barajas - San Blas
Las Tablas and Valdebebas

Located in the north of Madrid, these districts are largely Located near Madrid’s airport, these districts offer ave-
comprised of family residential neighborhoods. The constant rage prices at around 3,000 euros, although the costs
growth and high demand kept prices on the rise in 2019, with can range considerably due to the wide variety of pro-
Sanchinarro at the top, where the average cost has climbed perties offered.
by 8% compared to 2018, surpassing 4,000 euros / sqm.
Alameda-Barajas are not neighborhoods well-known by
The most sought-after areas in Sanchinarro are closest to the general public. However, the average price is relati-
El Corte Inglés mall and to the Sanitas Hospital in La Mora- vely high compared to similar areas. This is due to their
leja. The preferred neighborhoods in Las Tablas are closest high demand by people who already reside there, who
to the BBVA and Telefónica offices. The demand is not as value their tranquility, the ample green spaces and superb
high in Valdebebas since it is still undergoing development. public transport.

Since these residential neighborhoods are primarily inha- San Blas is a relatively popular district, whose interesting
bited by young Spanish families, the properties in highest development has future prospects. Despite its location
demand have three bedrooms. In Sanchinarro and Las outside of the M-30 freeway, the fact that it is right on
Tablas, properties are distributed throughout a surface the border makes it attractive, especially with regards to
area ranging between 100 and 130 sqm, and up to 120- neighborhoods like El Salvador, where you can find some
150 sqm in Valdebebas. outstanding properties, mainly in Rosas and Simancas.

From an investment point of view, Rejas offers a great oppor-
tunity in east Madrid. Improvements planned for public
transport in the area promise an upcoming revaluation.

Property Prices in Barajas - San Blas
(Data in euros / sqm)

About 90% of purchased homes are used as main resi- Aeropuerto Minimum Maximum Average
dences, while the remaining 10% is for investors. Most Alameda de Osuna 1.586 1.854 1.720
clients require financing, although that has seen a decline Corralejos 3.340 3.485 3.413
throughout this year, and 10% of the buyers made their Casco Antiguo Barajas 1.420 5.000 3.210
purchase using their own funds, as opposed to the 5% Timón 1.827 3.729 2.778
who did the same in 2018. Rejas 2.027 3.756 2.892
Salvador 2.260 3.286 2.773
Property Prices in Simancas 3.041 3.272 3.157
Sanchinarro - Las Tablas - Valdebebas 2.090 2.373 2.232

(Data in euros / sqm)

Sanchinarro Minimum Maximum Average
Las Tablas 3.495 4.419 4.110
Valdebebas 3.360 4.270 4.027
3.560 4.530 4.320

26 | Market Report 2019-20 Spain and Andorra

Rentals

What makes rent attractive as a vehicle for investment, Price of rent in Madrid by districts
mainly in the context of alternative assets with reduced (Data in euros / sqm)
profitability, is the remarkable dynamism of Madrid’s
market. This situation caused an upward trend in prices Centro Minimum Maximum Average
in the last few years, but in 2019, the trend came to a halt Salamanca 9 35 18,7
in districts with the highest demand. Chamartin 8,5 38 19,4
Chamberi 8,9 37,5 16,5
In the city as a whole, the average price has risen by 5% Moncloa 8 35 18,2
to 16.4 euros / sqm, even though in the most popular Hortaleza 24,8 15
districts such as Centro, Salamanca, and Chamberí, a Tetuán 6,87 23,1 12,4
slight decline was registered, whereas in areas like Mon- Retiro 5,5 26,7 16
cloa or Chamartín, the increase reached around 6%. Noroeste 9,25 30 16,6
Norte 9,1 10,38
In 2019, the most in-demand home was an apartment 3,6 24,37 12,09
with a surface area of 80-100 sqm, with two bedrooms, 3,4 28
two bathrooms, and a good location.

Engel & Völkers increased its leasing transactions by
20% in the city of Madrid in 2019, a trend they hope to
continue for the rest of the year.

Real Estate Market Trend · Community of Madrid | 27

Madrid’s Surroundings

Las Rozas San Sebastián Algete
de los Reyes (Zona Norte)
(Zona Norte)
Cobeña
La Moraleja (Zona Norte)

Paracuellos
(Zona Norte)

Majadahonda Madrid

Boadilla del Monte Pozuelo

Pozuelo - Boadilla del Monte
Las Rozas - Majadahonda
La Moraleja
Zona Norte

28 | Market Report 2019-20 Spain and Andorra

Madrid’s Surroundings

Pozuelo - Boadilla del Monte

Pozuelo de Alarcón and Boadilla del Monte remain the Property Prices in Pozuelo de Alarcón
municipalities with over 20,000 inhabitants and the (Data in euros / sqm)
highest average of annual income per capita in Spain.
Pozuelo Pueblo Minimum Maximum Average
The first of the two, with an income of 25,957 euros per Pozuelo Norte 1.786 4.853 3.320
inhabitant, is divided in two well-differentiated parts: La Pozuelo Estacion 1.800 7.353 3.033
Estación and Pueblo, two areas holding the bulk of the Avenida de Europa 2.250 3.800 3.025
district's services, and both surrounded by exclusive hou- Montealina 1.971 5.611 3.790
sing communities. Some of these communities, such as Prado Largo 1.629 4.000 2.531
Somosaguas, Montealina, Monte Gancedo, or Monteclaro, Monteclaro 1.267 5.000 2.636
are in high demand by Spanish families, who constitute Somosaguas 1.513 4.250 3.121
85% of the purchases compared to 15% of foreigners. Prado de Somosaguas 1.257 12.667 3.196
La Finca 2.130 5.236 3.295
Throughout 2019, prices in the municipal centre 1.708 8.264 3.672
showed a notable increase, while the northern area and
the Estación maintained their maximum rates at 7,000
and 8,500 euros / sqm.

Real Estate Market Trend · Community of Madrid | 29

In 2019, the average housing price in Pozuelo de Alar- Property Prices in Boadilla del Monte
cón stood at 3,155 euros / sqm, while in Boadilla del (Data in euros / sqm)
Monte it stood at 2.416 euros / sqm, and in Villaviciosa
de Odón, at 1.977 euros / sqm, with an increase between Monteprincipe Minimum Maximum Average
5% and 10%. Valdepastores 1.220 4.087 2.278
- Las Encinas
The housing typology in Pozuelo can be divided into Bonanza 1.013 6.977 2.391
two categories: flats between 150 and 200 sqm distribu- El Olivar 1.100 3.246 2.015
ted among four bedrooms, and spacious detached hou- Las Lomas 1.301 3.160 2.043
ses in green areas. The first one you find in Boadilla del Sector S 781 4.200 2.154
Monte and Villaviciosa de Odón, where you have in-de- Sector B 1.730 3.400 2.568
mand housing projects such as Valdecabañas and Mon- Centro 1.800 3.990 2.965
tepríncipe. The second category you have in El Bosque, Parque Boadilla 1.925 3.681 2.508
where houses have surface areas between 400 and 500 903 3.385 1.881
sqm distributed throughout more than 5 bedrooms.

Property Prices in Villaviciosa de Odón
(Data in euros / sqm)

El Bosque Minimum Maximum Average
Centro 877 3.780 1.821
Castillo - Campodon 566 4.980 2.477
1.014 3.798 1.781

30 | Market Report 2019-20 Spain and Andorra

Las Rozas - Majadahonda

Las Rozas de Madrid is the third municipality in Spain
whose population of over 20,000 people has the highest
income per inhabitant, according to the Urban Indicators,
published by the INE in 2019. It presents a buyer’s pro-
file similar to Majadahonda, Villafranca del Castillo and
Villanueva del Pardillo.

In Las Rozas and Majadahonda, Spanish families prima-
rily demand penthouse flats and apartments in the central
area, with a surface area of around 120 sqm, and three
or four bedrooms. Regarding foreigners, buyers from
South America comprise 20% of all purchases in the area,
with a clear preference for capacious stand alone houses.

Property Prices in Las Rozas
(Data in euros / sqm)

Centro Minimum Maximum Average The rising prices observed in all of the areas in Maja-
Molino de la Hoz 1.200 4.300 2.750 dahonda, is proof that the municipality is one of the most
Pinar - Punta Galea 940 3.700 1.800 desirable locations in the northeast of the capital.
Club de Golf 900 3.500 1.870
La Marazuela 750 3.500 1.850 Property Prices in Majadahonda - Villafranca
El Burgo - Abajón 960 4.000 2.450 del Castillo - Villanueva del Pardillo
El Cantizal 1.650 4.800 2.650 (Data in euros / sqm)
Monte Rozas 1.700 4.100 2.900
Las Matas - Peñascales 750 3.300 1.950
750 3.500 1.900

Monte del Pilar Minimum Maximum Average
Centro 1.550 5.200 3.350
Golf - Carralero 1.500 4.200 3.000
Norte 2.300 5.400 3.500
Carretra del Plantío 1.450 4.800 2.900
Villafranca del Castillo 1.200 4.800 2.760
Villanueva del Pardillo 700 3.200 1.800
765 3.350 2.065

Real Estate Market Trend · Community of Madrid | 31

La Moraleja

To the north of Madrid you find one of the most prestigious Regarding Arroyo de la Vega, where the average price
districts in the capital. It is composed of three residential stands at 3,500 euros / sqm and the maximum price does
areas: La Moraleja, El Soto de la Moraleja, and Encinar no reach 5.000 euros / sqm, the most demanded type of
de los Reyes. They are close to Arroyo de la Vega, where housing is a flat with 180 sqm of surface area, four
the offices of various multinacionals are located. You can bedrooms, plus a balcony or garden. The buyer profile
find two golf courses, tennis clubs, healthcare and shopping tends to be Spanish or foreign families, among which we
centres, along with the highest number of private and inter- find an increase of older married couples whose children
national schools in the entire country. have grown up and live on their own.

The properties in highest demand are located in El Soto Property Prices in La Moraleja
and El encinar, and they are either terraced or semi-de- (Data in euros / sqm)
tached housing with a garden, and a surface area of more
than 250sqm distributed throughout four or five bedrooms. El Soto de la Moraleja Minimum Maximum Average
These housing types change to 500 sqm stand-alone Encinar de los Reyes 3.000 6.000 3.857
homes in enclosed residential communities, when it La Moraleja 3.953 6.839 4.577
comes to clients seeking homes in La Moraleja. Arroyo de la Vega 2.654 7.000 4.300
2.212 4.900 3.500
That said, the average price in La Moraleja, in euros per
square metre, is not elevated for two reasons.
First, there are properties set for demolition, so they are
valued only for the land. Second, large sized homes actua-
lly lower the value of euros to square metre. We see a
wide range of prices according to the residential area,
and even the street.

32 | Market Report 2019-20 Spain and Andorra

Northern Region

In the region furthest to the north of the capital, you can high standing, built in the 70s and 80s on large plots of
find a variety of residential areas. Going beyond the La land, offer an excellent choice because of their affordable
Moraleja, we come across attractive modern municipa- prices, as opposed to the more modern homes in the area.
lities like San Sebastián de los Reyes, which is in full
expansion. It is well-connected, and increasingly desired Lastly, we have the area known as Paracuellos del
by young families, due to more affordable prices when Jarama. At the beginning of the century it saw significant
compared to its neighbor, Alcobendas. growth, making it a modern town that is well-organized
and equipped with high-quality properties, popular
San Agustín de Guadalix has become a favorite desti- among those who work at the airport and at industrial
nation for Madrileños wanting to purchase a second companies nearby.
home. Aside from the area’s excellent stock of single-fa-
mily detached homes, and its proximity to the nearby Housing price
mountain range, the flats offer affordable prices, making in the northern region of Madrid
the properties an attractive investment to accommodate
the large number of people who work at companies in (Data in euros / sqm)
the region.
San Sebastián Minimum Maximum Average
Tres Cantos is a young, 35 year old modern city offering de los Reyes
a wide variety of flats, terraced housing and single-family San Agustín 1.250 4.125 2.688
units, where Soto de Viñuelas claims the highest stan- de Guadalix 1.589 2.075 1.832
dards. The fact that it is so well-connected to Madrid Fuente del Fresno,
makes it desirable for many families, although its rising Ciudalcampo, Santo 1.798 2.595 2.197
prices are directing the interest of potential buyers Domingo 720 3.197 1.959
towards Colmenar Viejo. Paracuellos del Jarama 2.150 2.895 2.523
1.351 1.846 1.599
Around the National I freeway, we can find characteris- Tres Cantos
tic residential areas such as Fuente del Fresno, Ciudal-
campo and Santo Domingo. Its single-family houses of Colmenar Viejo

Real Estate Market Trend · Community of Madrid | 33

Catalonia

Barcelona

1.636.762 37.124 € 29.199 € 4.390 €/m² - 4 %
Population or Number Average Disposable Average Price Interannual
Variation
of Inhabitants Gross Income Income 2019

In 2019, the housing market in Barcelona underwent The trend in the outskirts was quite different. Despite its
two different stages. The first one, which took place unattractive setting, prices and transactions saw a good
between January and May, saw a slight increase in pri- increase. Sales costs climbed by 8%, standing at 2,170
ces and transactions. The second, between June and euros / sqm.
December, saw both variables drop considerably. The
outcome at the end of the year was negative, with a The rental market in Barcelona remained stable, with
decline in sales volume of new homes by 7% and 4% in prices staying at 17.7 euros / sqm. This amount does not
second-hand homes. include renewed contracts, only new rental agreements.
Different trends unfolded. Expensive flats saw their pri-
Economic, legal and political factors marked the diffe- ces get lower, as a consequence of all the tenants with
rence between both stages. On the one hand, the demand more purchasing power choosing to stop renting and
shrank. Many families saw the economic slowdown as a start buying. Meanwhile, cheaper flats became a bit
sign that another crisis was underway. They decided to more expensive because of their growing demand. In
postpone acquiring a new home and save their money the outer area, rent rates rose by 2% to an average price
instead. On the other hand, the new mortgage laws in of 10.8 euros / sqm.
Spain came into full effect in June and July, causing a
large decline in real estate transactions, although the In 2020, the price for both new and second-hand homes
decrease was temporary. will continue its decline in Barcelona, whereas in the rental
market, we will see a changing trend. Prices will undergo a
In Barcelona, an analysis by district allows us to sepa- slight decrease in both the capital and the surrounding nei-
rate them according to price changes. The following ghborhoods. The main reason will be that young families
districts registered an increase in costs: Nou Barris, switch from renting to buying. This change is owed to the
Sant Andreu, Gràcia, Sant Martí y Horta-Guinardó. significant raise in salaries seen in 2019 and 2020, along
Then you have districts that registered a decline: Sarrià- with a greater willingness on behalf of banks willing to
Sant Gervasi, Les Corts, Eixample, Ciutat Vella and concede loans and lower monthly costs, setting the mort-
Sants-Montjuïc. gage rate at a similar amount as rent.

34 | Market Report 2019-20 Spain and Andorra

Districts of Barcelona

Horta-Guinardó

Sarrià-Sant Gervasi Nou Barris

Les Corts Gràcia Sant Andreu
Sants-Montjuïc EixEaimxapmleple Sant Martí

Dreta
Ciutat Vella

Prices in euros / sqm

1.000 €  1.500 €  2.000 €  2.500 €  3.000 €  3.500 €  4.000 €  4.500 €  5.000 €  5.500 €  6.000 € 
-  -  -  -  -  -  -  -  -  -  - 

1.500 € 2.000 € 2.500 € 3.000 € 3.500 € 4.000 € 4.500 € 5.000 € 5.500 € 6.000 € 6.500 €

Sarrià-Sant Gervasi 5.010 Sant Martí 4.170 Horta-Guinardó 3.020
Les Corts 4.890 Ciutat Vella 4.085 Sant Andreu 2.900
Eixample 4.750 Sants-Montjuïc 3.790 Nou Barris 2.620
Gràcia 4.300

Real Estate Market Trend · Catalonia | 35

Barcelona by district

Ciutat Vella

Barcelona’s “old city”, encompasses the historical centre Property Prices in Ciutat Vella
of the city, which includes neighborhoods such as Raval, (Data in euros / sqm)
the Gothic Quarter, Born and the seaside area, the Bar-
celoneta. The unique character of the Ciutat Vella has Barri Gòtic Minimum Maximum Average
maintained the demand for homes in the area, primarily Raval 2.800 6.355 4.350
by international clients, whose presence has grown. Barceloneta 1.585 6.110 3.360
Sant Pere, Santa 1.760 7.930 5.030
In 2019, 62% of clients buying through Engel & Völkers, Caterina i la Ribera
were foreign. That is four points more than in 2018. Of 2.330 6.155 4.405
this percentage, 28.3% are French, 15% are Italian, and
9.4% are German. The common denominator among all
of them is their preference for old historical buildings that
conserve some of their original elements, with hydraulic
flooring and traditional Catalan “volta” ceilings.

The most highly demanded property in the district has
between 60 and 80 sqm of surface area, with two rooms.
A special preference is given to flats with an elevator and
outdoor access. 54% of all purchases are for primary
residences, 20% for secondary residences, and the 26%
for investment purposes make the city centre the most
prized location in Barcelona for this type of purchase.
Furthermore, many clients turn their secondary residen-
ces into profitable assets by renting them out.

In 2019, the average price for properties in Ciutat Vella
was held at 4.085 euros / sqm, which is an 8% decline
compared to 2018, the most popular neighborhoods being
Born, the Gothic Quarter, Raval and Barceloneta.

36 | Market Report 2019-20 Spain and Andorra

Eixample

Located in the centre of Barcelona, Eixample is the quin- That being said, Sant Antoni stands out as an increasin-
tessential modernist district, where the average price of a gly popular neighborhood to live in, with great restau-
home stood at 4,750 euros / sqm last year, which is a 7% rants, entertainment, and services, propelled by the remo-
decrease compared to the previous period. Aside from the deling of the market and the creation of new pedestrian
decline in price, in 2019 the area saw a drop in foreign spaces such as Superilla.
clients and investors at the same time as a growing number
of national buyers sought to purchase their first residence. Property Prices in Eixample
(Data in euros / sqm)
The number of foreigners purchasing homes in Eixample
last year was 43%, compared to 52% in 2018. Chinese La Dreta de l'Eixample Minimum Maximum Average
buyers constituted most of the buyers, although a notable La Nova Esquerra 3.470 8.400 5.290
rise in Italian and French clients was also observed. In de l'Eixample
2019, Eixample claimed the most amount of expedited La Sagrada Família, 3.110 7.320 4.410
Golden Visas transactions in Ciudad Condal (Barcelona). Fort Pienc
L'Antiga Esquerra 2.490 6.660 4.125
Penthouse apartments and flats with balconies ranging de l'Eixample
from 90 to 130 sqm, along with three rooms, represent Sant Antoni 3.140 8.080 4.810
the most sought-after homes in Eixample. The most in-de- 2.690 5.730 4.260
mand areas are la Dreta de l'Eixample and l'Antiga Esque-
rra de l'Eixample, due to their proximity to major streets
like Passeig de Gràcia, the Rambla de Catalunya, and
Enric Granados.

Real Estate Market Trend · Catalonia | 37

Sants-Montjuïc Les Corts

Located in the south of Barcelona, about 10 minutes away Three neighborhoods comprise this middle-class district:
by subway from the centre, Sants-Montjuïc is one of the Les Corts, Pedralbes and la Maternitat. Les Corts, Pedral-
most iconic districts in the city, as it combines the moun- bes and la Maternitat i San Ramon. It has a number of
tains, the sea, and an excellent array of cultural activities. advantages granted by its location, known as a financial
It is also next to the most important train station in Cata- centre hosting Universidad Politécnica.
lonia and the second in Spain.
The average price of housing last year stood at 4.890
The value of the properties dropped by 2.8% last year in euros / sqm, which represents a decrease by 4% from
this district till it stood at 3,790 euros / sqm. Sales closed 2018. The housing in the highest demand are flats and
by Engel & Völkers dropped by 5% in this area to a total penthouses with three rooms, and a surface area of 70
of 35 units. to 90sqm.

The most in-demand properties offer 50 to 90 sqm of sur- The neighborhoods Pedralbes and Les Corts claim the
face area, with two or three rooms, and all buyers show a highest demand, with the former known for the most
special preference for penthouse apartments. Sants and El exclusive residential areas in Barcelona, where interna-
Poble Sec-Parc de Montjuïc, which share part of the tional buyers seek houses with gardens. Regarding Les
demand for property in Sant Antoni, represent the most Corts, it is one of the most consolidated areas with the
coveted areas. Hostafrancs holds the highest average price best services in the city. It is a familial neighborhood
at 4,280 euros / sqm. The largest portion of the demand offering excellent transport and lots of tranquility.
comes from national buyers, comprising 65% of interested
parties. With regards to the international buyers, the majo- 75% of buyers are Spanish, but although the presence
rity come from France. 71% of all clients purchase homes of foreigners is not as great as in other districts, last
intended as their primary residence. year two Golden Visa operations. Most purchases are
for primary residences, with only 8% constituting an
investment.

Property Prices in Les Corts
(Data in euros / sqm)

Minimum Maximum Average

Property Prices in Sants-Montjuïc La Maternitat 3.310 4.885 4.000
(Data in euros / sqm) i Sant Ramon 3.230 5.060 4.150
Les Corts 4.015 6.970 5.445
Pedralbes

Minimum Maximum Average

Poble Sec - 3.100 5.225 3.950
Parc Montjuïc 4.120 4.340 4.280
Hostafrancs 2.215 4.565 3.530
Sants 3.270 3.800 3.625
Sants - Badal

38 | Market Report 2019-20 Spain and Andorra

Sarrià-Sant Gervasi

The area with the highest income per capita in Barcelona 87% of buyers are domestic, an increase of percentage
holds the most distinguished neighborhoods in the city. points compared to the previous year. The local client
This comfortable residential district brings together has entered the market more strongly and is causing
numerous parks, prestigious schools and health centres. downward closing price adjustments. Even so, the pro-
perties of more than four million euros continue to be in
The average price of the area fell by 3% last year to 5,010 demand by the international client.
euros/m2, and will remain more or less at this amount,
as this year expects to see some stability after the read- 85% of the purchases are made to acquire a main resi-
justments from recent months. dence, and only 6% as an investment. 53% of the opera-
tions are done with a mortgage, a percentage that is
Houses, penthouses and flats with a communal area and growing due to the increase in Spanish clients and low
parking are the most demanded properties. Sought-after interest rates.
homes have three or more rooms from 130 to 200 sqm.
Property Prices in Sarrià-Sant Gervasi
Galvany is one of the neighbourhoods with the highest (Data in euros / sqm)
demand and where requests are centred on royal estates,
while in Sarrià and Bonanova there is a high demand for Minimum Maximum Average
houses with gardens. 3.620 6.260 4.140
4.030 6.200 4.980
El Putxet i el Farró
Sant Gervasi - Galvany 3.180 7.190 5.280
Sant Gervasi - La 4.530 6.070 5.440
Bonanova 3.160 7.000 5.075
Les Tres Torres
Sarrià 2.840 4.810 4.385
Vallvidrera, el Tibidabo
i les Planes

Real Estate Market Trend · Catalonia | 39

Gràcia

One of the city’s oldest districts is also the smallest, but The area has stood out among international clients, who
that does not prevent it from registering the second are attracted by the charm of the neighbourhood's Cata-
highest figure in terms of population density. lan-style atmosphere. Foreigners accounted for 37% of
the total purchases in 2019, compared to 15% in 2018.
The price of properties reached 4,300 euros / sqm last Among them are a majority of French buyers, followed
year, which is 7% more than the previous year. This by Chinese, Americans and British.
increase is due to a price adjustment for the type of pro-
perties sold by Engel & Völkers. More operations were Flats and apartments from 70 to 90 sqm with two or three
therefore carried out on refurbished properties in 2019, rooms are the most requested in Gràcia. The four-be-
whereas in 2018, they were done on unrefurbished pro- droom properties, although not frequently offered in the
perties. area, do have a high demand and are the ones that sell
the fastest. 80% of the buyers are looking for a main
Looking at 2020, an adjustment of current prices is expec- residence, 10% for a second home and another 10% are
ted considering the increase in foreign customers com- buying to invest.
pared to the previous year.
The Vila de Gràcia, Camp d'en Grassot and Gràcia Nova
Property Prices in Gràcia are the most sought-after neighbourhoods. All three are
(Data in euros / sqm) characterized by having all kinds of services (hospitals,
schools, shops...), being located near the city centre, and
being well-connected.

El Camp d'en Grassot Minimum Maximum Average
i Gràcia Nova
La Salut 3.230 6.160 4.690
La Vila de Gràcia 1.035 4.320 2.210
Vallcarca i els Penitents 2.270 7.170 4.480
2.995 5.545 3.750

40 | Market Report 2019-20 Spain and Andorra

Horta - Guinardó Nou Barris

Located in the northeast of the city in a large valley, Hor- The youngest district of the city is located in the north
ta-Guinardó is the third largest district of Barcelona after of the city. Composed of13 districts, Nou Barris offersy
Sants-Montjuïc and Sarrià-Sant Gervasi. It has a very green spaces next to historical buildings such as the Cas-
differentiated and heterogeneous urban structure due to tell de Torre Baró. This brick castle with a medieval feel
the varied topography, which includes the Collserola is located at the top of the Collserola mountain range and
mountain range, the Hebron valley or the Horta stream. is one of the city's most privileged viewpoints.

Horta-Guinardó is in increasing demand because, like its The average price of a home in this district reached 2,620
neighbour Gràcia, it is both very well-connected and euros / sqm in 2019. Apartments between 75 and 90
equipped with all the necessary services. A great offer of square metres constitute the most popular housing type.
green spaces makes it complete. The average price of a The neighbourhoods attracting the largest number of
property reached 3,020 euros / sqm in 2019, which is an purchase requests, all of which come from Spanish citi-
increase of 2% compared to the previous year. zens, are Vilapicina i Torre Llobeta and Porta, known as
economic hubs offering excellent transport to the centre.
Houses and flats from 110 to 150 sqm with three to four
rooms claim the main demand in this district. Among
them, the most sought-after properties are single-family
homes with gardens. The neighborhoods Can Baró and
La Font d'en Fargues receive the highest number of appli-
cations, the latter due to the fact that it is a residential
garden area. Spanish buyers comprise 75% of the demand,
the majority of whom are also among the sellers. Prac-
tically all purchases are for a primary residence, while
only 3% are made as an investment.

Property Prices in Horta - Guinardó
(Data in euros / sqm)

Can Baró Minimum Maximum Average Property Prices in Nou Barris
El Baix Guinardó 2.550 4.640 3.245 (Data in euros / sqm)
El Guinardó - - 4.120
Horta 3.250 3.970 3.710 La Guineueta Minimum Maximum Average
La Font d'en Fargues 1.980 3.730 2.670 la Prosperitat 2.350 2.730 2.500
Montbau 2.280 5.000 3.015 La Trinitat Nova 2.320 2.790 2.490
2.050 3.330 2.880 Porta 1.700 2.570 2.200
Vilapicina i la Torre 2.840 3.475 3.150
Llobeta
1.245 3.000 1.850

Real Estate Market Trend · Catalonia | 41

Sant Andreu Sant Martí

The urban transformation of Sant Andreu is closely linked With a privileged coastal location within the city, excellent
to the arrival of the AVE (high-speed train) in the district transport, and a wide range of services, Sant Martí offers
and the creation of the new La Sagrera station. This new opportunities to renovate large three to four bedroom apart-
infrastructure and its railway accesses will give a more ments. The area received a boost in opportunities generated
innovative character to the neighborhoods of La Sagrera from the Glòries Tower, where relevant companies in the
and Sant Andreu. Therefore, while the average cost of technology sector established their headquarters, attracting
housing stood at 2,900 euros / sqm in 2019, the new their workers to the area.
developments will drive increased demand and rising
prices in 2020. The average price of a property in 2019 was 4,170 euros /
sqm, an increase of 5% over the previous year. The number
Apartments between 90 and 110 square metres with three of sales made by Engel & Völkers was lower in 2019, but the
or four bedrooms attract the highest demand in a district prices were higher. With the real estate agency opening up a
where 89% of the buyers are Spanish people looking for new office in the district, an increase in sales by 25% for 2020
their main residence. On the other hand, 7% of the clients is expected.
carry out their purchases as an investment strategy, since
rent offers more profitability than in other areas. Apartments between 80 and 100 sqm with two to three
bedrooms receive the highest demand. In addition, properties
Property Prices in Sant Andreu with extras such as parking and balconies are sought-after.
(Data in euros / sqm) The most popular neighborhoods, Poblenou, Camp de l'Arpa
i Clot and the area of Diagonal Mar, attract families looking
El Congrés i els Indians Minimum Maximum Average for quiet areas with schools and community facilities such as
Navas - - 3.280 swimming pools. 78% of all buyers seek a main residence,
Sagrera 3.125 13% an investment, and 10% a second home.
Sant Andreu 2.790 4.010 2.430
- - 2.690 The percentage of international buyers in this area reaches
36%, led by British, French and Italians, while the presence
2.570 3.060 of Russian and Chinese clients has gone down.

Property Prices in Sant Martí
(Data in euros / sqm)

Diagonal Mar i el Front Minimum Maximum Average
Marítim del Poblenou
El Clot 5.750 8.890 7.090
El Parc i la Llacuna 2.565 4.510 3.460
del Poblenou
El Poblenou 2.990 4.085 3.650
La Vila Olímpica 3.460 6.270 4.260
del Poblenou
Provençals del Poblenou 3.520 6.855 4.790
Sant Martí de Provençals 3.100 5.615 3.915
2.735 3.810 3.060

42 | Market Report 2019-20 Spain and Andorra

Rental

The price of rent remained stable in Barcelona throughout The capital’s most sought-after areas are Eixample,
2019, and even showed a slight drop in the average cost Sarrià-Sant Gervasi and Ciutat Vella. Flats or penthouses
of the city. The operations carried out by Engel & Völkers from 50 to 90 sqm with two rooms attract the most popu-
reflect this stability with an average rental price of 1,740 larity. In the surroundings, Sant Cugat del Vallès claims
euros, compared to 1,705 euros in the previous year, in the highest demand.
all the areas where the real estate company is present.
Thus, the average cost per square metre to rent in Bar- Rental prices in Barcelona by district
celona reached 17.7 euros / sqm, in line with what was (Data in euros / sqm)
registered in 2018, while in the periphery it rose by 2%
to 10.8 euros / sqm. Sarrià - Sant Gervasi Minimum Maximum Average
Eixample 17 37 8
The centre of the city and the periphery show different Ciutat Vella 18 40 7
developments. Prices rising in the surrounding areas are Les Corts 18 42 6
driven by a growing demand, while in Barcelona, espe- Gràcia 17 33 10
cially in the more central areas, the decline in interna- Sant Martí 17 43 8
tional customers has led to a drop in prices. 66% of 18 32 11
rentals were made by foreigners in 2019, only one point
more than in the previous year, although the volume of
properties rented to Italians, Americans and Germans
is increasing.

Forecasts for 2020 suggest that demand will remain sta-
ble, but the interest of domestic customers will shift to
buying property to take advantage of low interest rates.
The international demand on the other hand will be sus-
tained. Fewer transactions are therefore expected, and
the price will undergo a slight drop.

In addition, there is some fear of price regulation and we
are aware of the new rent law extending the duration of
contracts to five years.

In the periphery, demand is expected to increase while
supply will be constant, with the possibility of prices
increasing beyond what is expected. The high volume of
people looking to rent will be driven by those who can-
not acquire a property due to their economic situation.
Another factor to take into account is the mobility of
tenants in the city who, faced with a raise in rent, will
have to look for properties further out.

Real Estate Market Trend · Catalonia | 43

Badalona and Hospitalet

Santa Coloma Badalona
de Gramanet

Sant Adrià
de Besòs

Barcelona

Hospitalet
de Llobregat

Badalona
Hospitalet de Llobregat

44 | Market Report 2019-20 Spain and Andorra

Badalona Hospitalet de Llobregat

Located 10 km away from Barcelona, Badalona has expe- The second largest municipality in Catalonia (269,903
rienced a resurgence thanks to the port channel’s cons- inhabitants in 2018) is part of the Barcelona metropolitan
truction and the seafront area’s redevelopment. The pos- area. It has excellent transport services to the city centre
sibility of being close to the sea and the capital due to and it is an ideal alternative for those seeking the comforts
excellent transport services is its strong point. of a residential environment without having to give up
living near the capital. The Ciudad Judicial has also dri-
The average price of homes remained stable last year at ven a revitalization of the city and an important change
around 2,365 euros / sqm and is expected to see a slight in urban development.
increase in 2020.
Both flats and duplexes, with three bedrooms, between The average cost of properties last year reached 3,230
90 and 130 sqm, are the most sought-after properties, euros / sqm, which is very much in line with prices in
although the hottest properties in the area are centrally 2018. Flats and penthouses from 90 to 110 sqm with four
located flats with a balcony, which are close to the sea bedrooms receive the highest demand, in areas such as
and offer great views. The city centre claims the most Plaza Europa and Santa Eulàlia, due to the architectural
popularity in the area. All the buyers are from Spain and typology of the buildings, most of them semi-new cons-
the acquisitions are for a primary residence. In 2019, tructions built around the year 2000.
small flats saw the most sales.
62% of the buyers are Spanish while the presence of
foreigners is comprised of Romanians, Chinese, Ukrai-
nians, Iranians and Nepalese.

Property Prices in Hospitalet
(Data in euros / sqm)

Hospitalet de Llobregat Minimum Maximum Average
2.465 4.650 3.230

Property Prices in Badalona
(Data in euros / sqm)

Badalona Minimum Maximum Average
1.670 3.780 2.365

Real Estate Market Trend · Catalonia | 45

Barcelona's surroundings

Vallès Oriental

Vallès Occidental

Barcelonés

Baix Llobregat

Garraf

Vallès Oriental and Occidental
Baix Llobregat
Garraf

46 | Market Report 2019-20 Spain and Andorra

Barcelona's surroundings

Vallès Oriental - Vallès Occidental

The Vallès region, located between the rivers Llobregat Sant Cugat del Vallès, Sabadell, Sant Quirze del Vallès
and Tordera, is divided into two administrative districts: and Cerdanyola del Vallès are the most popular areas. In
the Vallès Occidental, whose capitals are Sabadell and Sant Cugat, both Parc Central and Eixample claimed the
Terrassa; and the Vallès Oriental, where the region's highest demand from those looking for a flat, while
capital is located: Granollers. In both districts housing Arxius, Valldoreix and Mirasol, areas close to the station,
prices rose by around 4-5% in 2019. attracted clients looking for a house. The strong points
of these residential areas include the high quality of life
Vallès Occidental offered, and their proximity to the metropolitan area. 90%
of the buyers purchase their primary residence while the
The average price of properties in Vallès Occidental rea- remaining 10% are making an investment.
ched 2,905 euros / sqm in 2019, 4% more than the pre-
vious year, with the demand centred on single-family and Sant Cugat retains the title of the most premium area.
terraced homes over 300 sqm, as well as penthouses and It is where the highest prices are reached at 5,600 euros
flats with terraces between 90 and 110 sqm; all of them / sqm, although the average cost has stood at 3,460 euros
with three or four bedrooms. The most profitable flats / sqm. On the other hand, in Sabadell the average price
are those with four rooms, parking and an outside exit, remains below 2,000 euros / sqm, around 1,900 euros /
due to their scarce supply and because families comprise sqm, although operations carried out by Engel & Völkers
the majority of the demand. last year involved payments of up to 3,445 euros / sqm.

Real Estate Market Trend · Catalonia | 47

Vallès Oriental excellent quality of life to its inhabitants, who also value
living in a privileged location between the Montseny
In Vallès Oriental the average cost of housing stood at Natural Park and the Serralada Catalan Coast.
1,600 euros / sqm, a 5% increase, and prices are expected
to remain stable this year. Noteworthy is the increase in Cardedeu stands out as one of the most privileged areas
Spanish buyers in 2019, accounting for 95% of all pur- with an average price of 1,980 euros / sqm, and where
chases, compared to 80% in 2018. the most sales transactions were registered in 2019.

Granollers holds the properties in highest demand, which Property Prices in el Vallès
are the flats, duplexes, and single-family homes with a (Data in euros / sqm)
garden, more than 200 sqm and four rooms. Customers
seek well-connected houses close to the town centre, with Vallès Occidental Minimum Maximum Average
one or two floors on flat plots of land. Vallès Oriental 1.150 5.600 2.905
1.225 2.475 1.600
Granollers, La Garriga, Cardedeu and Caldes de Montbui
comprise the most sought-after areas for buyers; Grano-
llers for being the capital and the others for offering an

48 | Market Report 2019-20 Spain and Andorra

Matadepera Rentals

Located in the region of Vallés Occidental, Matadepera The price of homes for rent increased by 5% to an average
is a residential town that enjoys high-quality local com- of 8 euros / sqm. The supply of rental properties is low
merce and the services necessary for a town of its size, for such a high demand composed largely of young fami-
whose population is close to 10,000 inhabitants. lies from Barcelona, Sabadell or Terrassa. These couples,
most of them under 40 years old, want to rent a house in
The price of housing increased by 4% last year to 2,350 Matadepera to see if they can adapt to life in a much
euros / sqm. The most demanded housing typology is a smaller municipality, with few central streets and where
single-family home of 250 sqm and four rooms. Districts most of the districts are housing estates.
attracting the most interest are Centro, Drac-Parc and
Can Prat - La Plana. Buyers are mostly couples between Clients are looking to rent a 300 sqm, four-bedroom sin-
45 and 50 years old, with two or three children and a gle-family house. The area with the greatest offer is the
competitive economic capacity. Sellers are older people, Cavall Bernat housing development, but the most sou-
around 60 years old, who sell mostly single-family ght-after districts are the centre or those located nearby.
homes, because they want to live in smaller and more
practical houses.

Price of rent in Matadepera
(Data in euros / sqm)

Property Prices in Matadepera Minimum Maximum Average
(Data in euros / sqm) 8,5 11,5 10
5,5 6,5 6
Minimum Maximum Average Golf 7,5 11,5 9,5
3.000 2.700 Cavall Bernat/Can Roure
Golf 2.400 2.400 1.925 Centro 5,5 6,5 6
3.840 3.040 Can Solà Del Racó/ 7,5 11,5 9,5
Cavall Bernat/Can Roure 1.450 2.700 2.205 Pla De Sant Llorenç 5,5 6,5 6
2.900 2.435 La Plana/Can Prat 8,5 11,5 10
Centro 2.230 1.980 1.640 Les Pedritxes/Els Rourets
3.010 2.725 Verge de Montserrat
Drac Parc 1.710

La Plana/Can Prat 1.970

Les Pedritxes/Els Rourets 1.300

Verge de Montserrat 2.440

Real Estate Market Trend · Catalonia | 49

Baix Llobregat

The third most populated region of Catalonia has its capi- Baix Llobregat Sur
tal in Sant Feliu de Llobregat. From a real estate point
of view it can be divided into two large areas with diffe- The type of in-demand property is three to four bedroom
rent prices. While the north has reached an average price 117 sqm flats in Molins de Rei, to the five or six bedroom
of 1,440 euros / sqm, after rising by 10%, in the south, houses of 200-300sqm in Sant Boi de Llobregat, Caste-
the price has reached 2,030 euros / sqm, with a slight lldefels and Gavà. In Molins de Rei, the average cost of
increase compared to 2018. a flat is 300,000 euros and the cost of the houses is
607,000 euros.

Baix Llobregat Norte The municipalities in greatest demand are Molins de Rei,
Castelldefels (Pineda, Bellamar, Montemar and Poal),
The residential offer in the north is competitive, allowing Gavà Mar, Sant Boi de Llobregat (Marianao), Cornellà,
access to single-family houses in residential environ- Viladecans and the municipality of Begues, where there
ments surrounded by vegetation, as well as high-quality is a lot of internal demand from within the municipality
flats or semi-detached houses in small towns. itself. It is important to highlight that many of the pro-
perties in the prime areas of Gavà Mar and Castelldefels,
The single-family homes of 200 sqm or more and four have undergone overvaluation.
rooms attract the highest demand in the area, with Valli-
rana, Corbera de Llobregat and Cervelló the most popu- The most popular areas are in front of the beach , with
lar locations. They offer the possibility of living close houses located in Gavà and Castelldefels, offering views
to Barcelona and with good transport. Most of the buyers of the sea. 88% of the buyers are Spanish citizens, and
are Spanish people looking to acquire their primary in recent months there has been an increase in Russian
residence, although the increase in the presence of inter- customers.
national clients stands out, rising from 5% in 2018 to
12% last year.

Property Prices in Baix Llobregat Norte
(Data in euros / sqm)

Minimum Maximum Average

Martorell, La Palma 1.340 2.200 1.620 Property Prices in Baix Llobregat Sur
de Cervelló, Sant 1.165 1.920 1.400 (Data in euros / sqm)
Andreu de la Barca 1.280 1.840 1.470
Corbera, Pallejà
Vallirana, Cervelló

Molins de Rei Minimum Maximum Average
Sant Boi, Castelldefels, 1.450 4.035 2.120
Gavà, Begues, Santa
Coloma de Cervelló 1.450 3.710 1.960

50 | Market Report 2019-20 Spain and Andorra