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AAFF Market report_Spain and Andorra 2018-2019

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Published by Engel & Völkers, 2020-02-14 07:09:14

AAFF Market report_Spain and Andorra 2018-2019

AAFF Market report_Spain and Andorra 2018-2019

Market Report 2018-19
Spain and Andorra




06 08

World Economic Spain’s
outlook Economy


The Real Estate
Sector in Spain

05 Editor’s note
16 Market Trends

The Spanish Residential Market 

108 Andorra

4 | Market Report 2018-19 Spain and Andorra


Juan-Galo Macià

The GDP growth of 2.6% in 2018, even though it By 2019, the demand from first-time buyers and an
was slightly lower than the previous year, reflects the increase in tourists will make a progressive appearance.
great strength of the Spanish economy in a somewhat The first will focus on apartments with prices between
unfavourable global economic situation. The sharp rise in 100,000 and 150,000 euros, and the second in the most
the price of oil, the trade war, the minor growth in the euro popular resorts along the coast (Marbella, Calella de
zone and the return of Turkey, Tunisia, and Egypt to the Palafrugell, Port Andratx, etc.). Young buyers will be able
tourism market have all burdened the economic situation to buy their first homes by obtaining 100% mortgages.
at a global level. In spite of everything, Spain is not on the This will help them get on the property ladder easier.
verge of a new recession and its economic growth is not
only slowing down, but it is actually progressing forward. Prices will increase by around 10%, purchases will go
up by approximately 15%, and the major players of the
In recent months, the housing market has been dominated market will be the medium-sized cities (between 300,000
by investment demand (around 50% of purchases). The and 1,000,000 inhabitants). In contrast with both, the
lack of deposit necessary for purchasing a home has made large cities and Palma, the price recovery has so far been
demand practically residual, just like what happened to scarce. Last year, in many of these cities, the reduction
the tourism market. in prices with respect to 2007 exceeded 25%.

The engines of the market in 2018 have once again been To summarise, it will be a good year as the residential
the communities of Madrid, Catalonia and the Balearic market will continue to expand and medium-sized cities
Islands. However, the real estate recovery had already will once again be the main players. These regions have
started to get noticed in almost every municipality in taken over the two largest cities in the country, giving
the country and in most of the cities, the rise in property way to stabilisation of prices in Barcelona as well as in
price easily exceeded the inflation rate. the Central Almond of Madrid.

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

Editor’s note | 5

World Economic Outlook

Global Growth

The weakening global expansion and a slowdown of glo- GDP Growth
bal synchronisation will affect the development of the
world’s economy during 2019. The growth will be 3.5%, 8
two tenths less than in the previous years due to the nega- 7
tive effects of tariffs and trade war, the weakening of 6
some emerging markets including China, and the eco- 5
nomy slowdown in European countries, such as Italy and 4
Germany. In addition, the rise of oil prices, geopolitical 3
tensions and the worsening trade situation will all weight 2
heavily on the world’s economy. 1
0 2011 2013 2015 2017 2019
According to the International Monetary Fund (IMF),
the developed markets will experience further decelera- Advanced economies Emerging economies and the developing markets
tion, going from a growth of 2.4% in 2018 to 2% in 2019. Source: FMI
Special mention should be made about the US. Helped
by its fiscal stimulus, it will remain above its full poten- The less balanced growth has come with higher oil pri-
tial until 2020. This year the US economy will grow by ces in recent years. Last year, a barrel of Brent oil was
2.5% compared to 1.6% in the Eurozone, 1.5% in the more than 85 dollars, the highest price since 2014. After
United Kingdom and 1.1% in Japan. stabilising around 70 dollars, the expected slowdown
world-wide, and consequently, due to the lowest
The emerging markets will grow by 4.5%, with the Asian demand, it could put downward pressure on prices in
countries prospering the most. India and China will expe- the next few months.
rience gross domestic product increases (GDP) of more
than 7.5% and 6.2%, respectively. On the other hand, the Similarly, inflation will continue to be contained, posi-
Latin American companies will cause business tensions tioning itself around 1.7% in advanced economies. In
due to volatility of raw materials and financing challen- Latin America, hyperinflation could get worse in Vene-
ges and their economy will grow by less than 3%. zuela as a result of the financing of the large fiscal deficits
and loss of confidence in the country’s currency.

6 | Market Report 2018-19 Spain and Andorra

Consumer price inflation Real Estate Market

2,5 The current favourable financing conditions are positive
for the real estate sector on an international level. One
2,0 of the occurrences in this market since the economic
recovery started is the stabilisation of property prices.
1,5 As indicated by the IMF, an increase in this synchroni-
sation has been observed in 40 countries and 44 of the
1,0 main cities in the developed and emerging markets.

0,5 The factors mentioned, plus the shortage of supply and
the search for profitable investments will result in the
0,0 prices rising in the coming months, although the increa-
ses will be moderate. It should be noted that the nor-
-0,5 malisation of the monetary policy by central banks,
which will entail stricter financing conditions, the
-1,0 impact of trade wars and the slowdown of some large
economies, will result in lower demand for property.
-1,5 2013 2014 2015 2016 2017 Jul. 2018
Although at the moment there are no risks of new bub-
Advanced economies Data in %. Source: FMI bles occurring in the real estate market, the possible
increases in interest rates should be treated with caution,
Interest Rates especially if the credit growth gets higher than expected.

Without inflationary pressures, financing conditions
remain at accommodative levels and favour growth,
although the central banks of the main economies con-
tinue with standardisation of the monetary policy. Howe-
ver, the expectations about the upcoming rate hikes by
the weakening of the world economy have been lowered.

Last year in the United States the interest rates were set Property price development by countries
above 2% for the first time in a decade due to the boost Year-on-year change in% during 2018
in economy - with the lowest level of unemployment
since 2000- as well as the expectations of further fiscal -20 -15 -10 -5 0 5 10 15
stimulus. In Europe, the European Central Bank (ECB)
has kept the interest rates at record low at 0% with the
possibility of increasing them later than expected given
the signs of economic slowdown in countries like Italy
and Germany.

In the currency market, the dollar will be maintained at Hong Kong
current levels in the first half of the year before weake- Ireland
ning in the second half as a consequence of the public
and government deficit and debt generated by the tax Portugal
laws from the Trump administration and the higher Holland
Federal reserves that will cause rate increases in the Croatia
near future.
Euro / dollar exchange rate Canada
1,24 Germany
1,22 New Zealand
1,18 USA
1,16 China
1,14 Australia
Source: Bloomberg Austria



United Arab Emirates

Source: FMI

World Economic outlook | 7

Spain’s Economy

The Outlook

The Spanish economy will slow down this year, in tune Finally, the normalisation of the ECB’s monetary policy
with the main countries of its surroundings, although it and the possible increases in interest rates constitute to yet
will still grow above the European average. Forecasts another economic vulnerability that still has a bulky weight
from national and international organisations point to an of public and private debt on its shoulder. The annual infla-
increase in national GDP of 2.1% -2.2%, compared to tion rate in December will be around 1%-1.2%; a stable rate
1.6% planned for the Eurozone. The better economic compared to 1.2% at the end of 2018.
performance in Spain stems from the positive internal
factors, such as the increase in competitiveness, job crea- Annual IPC growth
tion, the deleveraging of the private sector and a healthy
financial sector. The deceleration with respect to the eco- 2,5
nomic growth of 2.5% in 2018 responds to the exhaustion
of external tailwinds. 2,0

The 2.5% reduction in the growth rate in 2018 responds 1,5
to the exhaustion of the external economic factors. The
main one responsible for this development is the foreign 1,0
sector, which already reduced its contribution to GDP last
year partly because of the slowdown in the tourism indus- 0,5 jan feb mar apr may jun jul aug sep oct nov dec
try. The deterioration of prospects for the economic situa-
tion, including the loss of dynamism in some of the main 2018
export markets of Spain, such as Italy and the United
Kingdom, explains the moderation in exports. General index. Percentage
Source: INE

GDP growth in Spain



-5 Source: INE
2006 2007

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

8 | Market Report 2018-19 Spain and Andorra

Financial situation of households

The net wealth of the Spanish households, which includes estate wealth. Source: Engel & Völkers with data from the
their net financial wealth plus real estate, remains solid Bank of Spain and Inverco.
and increased to 551% of GDP in the second quarter of
2018 compared to 543% in December 2017 – based on Along with purchases and appreciation of real estate assets,
the latest data available at the closure of this report-. the lower financial vulnerability of the Spanish families is
explained by the debt process. The total gross debt has
This increase mainly stems from the rising real estate fallen to 60.8% of GDP since the 85% peak it reached in
wealth, which stood at 432% of GDP, amounting to more June 2010. However, in recent months, the statistics have
than five trillion euros, although still far from the maximum shown a return of high debt, especially due to the rise in
figure recorded in 2007 (584% of GDP). The financial consumer loans and, to a lesser extent, mortgages.
wealth, which results from deducting the debts of the total
financial assets, remained at 1.41 trillion euros, equivalent The increase in spending above the gross disposable
to 118.9% of GDP. The financial situation of Spanish fami- income has caused the savings rate to fall to 5.2% at the
lies. Figures in billions of euros. Net financial wealth Real end of the third quarter. If this trend continues, it will
mean that public debt will continue to increase in the
The financial situation of Spanish families next few months.
(Figures in billions of euros)
5,2% of
8 household
7 savings
5 Percentage based on
4 quarterly gross
3 disposable income
1 Source: INE

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

Net financial wealth Real estate wealth

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

Spain’s Economy | 9

Real Estate Sector in Spain

Current situation Financing

The real estate sector has accumulated five consecutive The normalisation of the ECB’s monetary policy goes
years of growth after the property bubble burst. The higher to show that mortgages will become more expensive in
consumer trust, good financing conditions and the search the upcoming months, although the conditions will not
for profitable investments in an environment of low interest be restrictive and interest rates will remain at accom-
rates result in a market in which both the purchase and modative levels. The Euribor, the reference rate to which
sale prices can progress forward. most of the mortgages in Spain are linked to, has alre-
ady started to reflect this trend.
The recovery, which will continue throughout 2019, is
occurring in a standard manner but is still far from the The Euribor rate closed at -0.129% in 2018, after accu-
historical maximums experienced during the full boom. mulating nine consecutive monthly advances. Although
All this lowers the risk of a new housing bubble in the the rate is currently negative, the rise has meant that last
short and medium term. year the mortgage rates went up for the first time since
2014, both in the case of semi-annual and annual reviews.
The residential property market is still the engine of the
sector. With the return of new-builds, the solid demand for For example, the monthly payment amount for a mort-
resale properties and the growing weight of rentals means gage of 120,000 euros for a term of 20 years and a rate
new price increases and higher demand in the coming of 1% would be changed to 544.99 euros based on the
months. December Euribor rate. This equals to 3.2 euros more
per month than a year before.
The main risks for the sector would be tougher lending
conditions once the ECB starts to raise interest rates in the Euro/dollar exchange rate
second half of the year.








jan may sep jan may sep jan may sep

2016 2017 2018

Source: Engel & Völkers with data from the ECB

10 | Market Report 2018-19 Spain and Andorra

Price Development

House prices will maintain a bullish path when taking IPV Annual Rate
valuations into account as well as sold properties. Accor- General index, new-builds and resale (%)
ding to the Ministry of Development, the average price
per square metre for private homes stood at 1,589.5 euros 8
in the third quarter of 2018, 3.2% more than a year earlier.
This data represents the fourteenth quarter consecutive 7
rise after 26 quarters of falls started at the end of 2008.
From the third quarter of 2014, property prices regained 6
strength by 9.2%, although they are still 24.4% lower than
the historical maximum recorded in 2008. 5

The property prices in each autonomous community have 4 T2 T3
increased by 11%, with Madrid (8.3%), La Rioja (6%), 2018
the Balearic Islands (5.2%) and Catalonia (4.8%) in the T1 T2 T3 T4 T1
lead. On the contrary, in seven of these districts, the pro- 2017
perty prices have fallen. These include Cantabria (-2.7%),
Galicia (-1.7%) and the Basque Country (-1.2%). General Index New builds Resale homes
For municipalities with more than 25,000 inhabitants, the
highest prices for private homes can be seen in San Sebas- Data for the end of the third quarter of 2018. Source: INE
tian, Sant Cugat del Vallès, Ibiza, Barcelona, Santa Eula-
lia del Río, Pozuelo de Alarcón and Madrid, all for above The 10 most expensive municipalities in Spain
3,000 euros / sqm. (Figures in euros/sqm)

According to the National Institute of Statistics (INE), San Sebastián 3.356,1
which refers to house purchases, the Price Index of Hou- Sant Cugat del Vallès 3.328,4
sing (IPV) stood at 7.2% in the third quarter of 2018. When Ibiza 3.318,3
taking into account the type of property concerned, the Barcelona 3.300,1
annual variation for new-builds was 6.1% and 7.3% for Santa Eulalia del Río 3.188,5
resale. By autonomous Community, Madrid (10.9%), Cata- Pozuelo de Alarcón 3.053,1
lonia (9.1%) and the Balearic Islands (7%) have recorded Madrid 3.016,0
higher increases. Getxo 2.928,5
Castelldefels 2.912,6
Majadahonda 2.912,2

Data for the end of the third quarter of 2018. Source: Ministry of Development

Average price of private housing per square metre (€/sqm)








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

Data for the end of the third quarter of 2018. Source: Ministry of Development.

The Real Estate Sector in Spain | 11

Mortgages and purchases

The high number of mortgages granted to home buyers
is another sign of the property market’s good state of
health. Between January and November 2018, a total of
324,253 mortgages were approved, which is 12% more
than in the same period of 2017. There are already five
consecutive years with increases in mortgage approvals
and two in which more than 300,000 are taken into
account. However, these figures are far from the million
or more mortgage approvals that were recorded back in
2006 and 2007.

60% of mortgages are variable rate and 40% are fixed
rate. This means four out of 10 mortgages are fixed-rate,
compared to one in ten back in 2005, due to the interest
rate increases that are expected in the coming months.

1.600.000 Number of approved mortgages
1.200.000 2009 2010 2011 2012 2013 2014



2006 2007 2008 2015 2016 2017 2018*

*Data up to November. Source: INE

The property sales figures are also positive, which even According to the INE, between January and November
exceed the number of mortgages given to borrowers. of 2018 there were 481,220 property sales, 10.6%
According to the latest data from the Ministry of Deve- higher than the same period in 2017. By 2019, the fore-
lopment, between January and September of 2018, there casts point to exceeding the half a million sold proper-
were a total of 410,883 homes sold, which represents an ties, as per what happened last year.
increase of 11% compared to a year earlier. Andalusia,
Catalonia, Valencia and Madrid are the autonomous
communities with the most sold properties.

12 | Market Report 2018-19 Spain and Andorra

Property purchases by municipality

Andalucía 60.000 70.000 80.000 Total National
Cataluña 2014 347.170
2015 383.107
Comunitat Valenciana 2016 436.574
Comunidad de Madrid 2017 509.847
2018* 410.883
Castilla y León 90.000
Castilla-La Mancha

País Vasco

Región de Murcia
Islas Baleares

Principado de Asturias

C. Foral de Navarra
La Rioja

Ceuta y Melilla
0 10.000 20.000 30.000 40.000 50.000

Data at the end of the third quarter. Source: Ministry of Development

Registered property sales based on the
nationality of the buyer
Year 2018

Nationalities % % foreigners

United Kingdom 2,0 15,5
Germany 1,0 7,5
France 0,9 7,4
Belgium 0,8 6,3
Sweden 0,7 5,8
Romania 0,7 5,4
Italy 0,7 5,4
Morocco 0,6 4,8
China 0,5 3,9
Russia 0,4 2,9
Netherlands 0,3 2,7
Norway 0,3 2,0
Ukraine 0,2 1,6
Poland 0,2 1,5
Algeria 0,2 1,3
Ireland 0,2 1,3
Bulgaria 0,1 1,1
Switzerland 0,1 1,0
Denmark 0,1 0,9
Rest 2,7 21,6

Foreigners 12,6% 100,00%

Nationality 87,4%

TOTAL 100,00%

Source: Spanish Association of Registrars

The Real Estate Sector in Spain | 13


According to statistics, the rental properties continue
gaining adepts in Spain and have already reached a
total of 16.9%. On the other hand, the percentage of
owned homes is below the 77% minimum of the histo-
rical figures, which began in 2004 and reached the
maximum in 2005 with 80.5%. Despite this develop-
ment, the records still differ from Europe, where on
average, 69% of households own their property.

The rental boom responds to a change in preferences
by the housing trend regime as more people opt for
investing in a buy-to-let property. The potential profits
from a buy-to-let property range from 5% and 8%
annually, especially for properties situated in large
cities and on the coast.

In the coming months, the measures related to the ren-
tal market that are negotiated within the framework of
General State Budget could result in an element of

Property ownership in Spain
Figures in %






76 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: INE

14 | Market Report 2018-19 Spain and Andorra

Property ownership in Spain
Figures in %

Asturias Cantabria

Galicia País Vasco
Castilla y León Cataluña
La Rioja Balearic Islands



Castilla-La Mancha Valencia




Canary Islands

67,3 %  72,0 % 77,5 %  80,7 %  83,4 % 
-  -  -  -  - 

71,9 % 77,4 % 80,6 % 83,3 % 85,0 %

The Real Estate Sector in Spain | 15

16 | Market Report 2018-19 Spain and Andorra

The Spanish
Residential Market

Surrounding area

Surrounding area
Gerona - Costa Brava
Catalan Pyrenees - Gerona and Lérida

Alicante - Costa Blanca

Costa del Sol

Castile and León

Basque Country




Market Trends. The Spanish Residential Market | 17

Community of Madrid


3.165.541 36.442 EUR 28.876 € 3.844 €/m² 17%
Population or number Average Gross Disposable Average Price Interannual
of inhabitants Income Income 2018

Property price moderation has arrived to the capi- increase in house prices slowed down. The forecasts
tal. The year 2018 has meant the recovery of the real by the Registrars point to a higher growth in demand
estate sector in Spain, surpassing the 500,000 pro- in 2019 motivated by a reduction in the upward trend
perty sales. This is a figure that has not been achieved in prices, which will go from growing at a rate of two
since 2008, according to the 2018 Real Estate Regis- digits to a single digit.
try Statistics published by the Spanish Property and
Commercial Registrars. The estate agencies that spe- By neighbourhoods, the central districts experienced
cialise in selling properties have registered more than a moderate rise in prices last year. At the same time,
80% of sales in 2018, more than they achieved in the price of real estate in the suburbs of the south of
2007 and 14% more in 2017. This situation has also the capital has increased, although they are still three
occurred in the city of Madrid. The capital is also the times less than those in the districts of Centro, Sala-
second municipality of the country that has registe- manca and Chamberí, where the price per square
red a greater rise in the prices of properties. metre had already exceeded 4,000 euros in the begin-
ning of 2018, according to data from the City council
Specifically, last year the cost of homes in Madrid of Madrid. On the other hand, the Madrid municipa-
increased by 17%, a rise only exceeded by Las Pal- lities of Pozuelo de Alarcón and Majadahonda are
mas de Gran Canaria (+ 21.1%). Although the price still two of the Spanish cities with the most expensive
per square metre rose by an average of 600 euros in properties, with an average price of 3,000 euros per
the capital, during the last few months of 2018 the square metre.

18 | Market Report 2018-19 Spain and Andorra

Districts of the city of Madrid

Fuencarral-El Pardo





Chamberí Ciudad San Blas
Salamanca Lineal Vicálvaro
Centro Retiro


Latina Puente
de Vallecas

Carabanchel Usera

Villa de Vallecas


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 6.470 Tetuán 3.935 Moratalaz 2.459
Retiro 5.349 Arganzuela 3.900 Villa de Vallecas 2.297
Centro 5.170 Barajas 3.800 Vicálvaro 2.189
Chamartín 4.589 Moncloa - Aravaca 3.643 Carabanchel 2.100
Chamberí 4.505 Fuencarral - El Pardo 3.507 Usera 1.900
Ciudad Lineal 4.190 San Blas 3.090 Puente de Vallecas 1.743
Hortaleza 4.170 Latina 2.650

Market Trends. The Spanish Residential Market | 19

District by District

Centro and Arganzuela

Throughout 2018, the Centro district has been subject to The New Brooklyn of Madrid
multiple urban modifications that have created an expec-
tation of growth in purchases and prices. The develop- The high demand from the young buyers in the area
ment of the Canalejas complex together with the pedes- closest to Matadero has meant this district can be
trianisation of Gran Vía and the creation of Madrid Cen- called the ‘New Brooklyn’. The excellent road connec-
tral have been the determining factors for a price increase tions and provision of services in Puerta del Angel to
that will not continue in 2019. Madrid Río is highly valued by families and young
couples who look for two or three bedroom houses
Last year, investor interest caused a significant reduction under 300,000 euros along with 80 sqm apartments at
in the average time it took for a property to sell, from 160 a price of around 3,500 euros / sqm.
to 120 days. It is worth mentioning that Engel & Völkers
experienced a record property sale of just one hour Property prices in Centro and Arganzuela
through Facetime. (Figures in euros / sqm)

The profile of the buyer in this area is mostly national, Palacio Minimum Maximum Average
many of them expats who want to return to Madrid to live Embajadores 4.100 5.900 5.000
in the centre. The Spanish customer accounts for 70% of Cortes 3.200 5.620 4.410
purchases compared to 30% of foreigners led by Vene- Justicia 4.700 6.300 5.500
zuelans, Colombians, Belgians, Italians, British, Ameri- Universidad 5.100 7.100 6.100
cans and Israelis, although there is a significant interest Sol 4.500 5.700 5.100
from the Lebanese, Russians, Norwegians and customers Imperial 4.200 5.600 4.900
from Singapore. Acacias 3.500 4.600 4.050
Chopera 3.900 4.300 4.100
The residential area closest to Legazpi is the green zone Legazpi 3.100 3.900 3.500
par excellence of the district. Characterised by newly Delicias 4.000 4.900 4.450
built houses with communal services-swimming pool Palos de Moguer 3.900 4.000 3.950
and gardens in high-quality private estates-, this area is Madrid Río 3.800 4.600 4.200
called Metales and is one of the most expensive in Argan- 2.300 3.300 2.800
zuela, reaching prices of €4,600 / sqm for three-bedroom
homes of around 150 sqm.

20 | Market Report 2018-19 Spain and Andorra

Retiro Salamanca

The excellent location of this district makes it the top Synonymous with exclusivity, this is the most emble-
chosen place by the upper-class Spanish families who matic district of Madrid and it’s where the most prime
buy their first homes. In fact, they make up 90% of neighbourhoods of the capital are located. In Recoletos
purchases. The remaining 10% of purchases carried and Castellana you can find elegant homes in aristocra-
out in Retiro last year were done by foreign customers. tic buildings from the nineteenth century with new-
If in 2017 the Latin Americans, mainly Mexicans, build properties that are highly appreciated by interna-
Colombians and Venezuelans, carried out these pur- tional customers.
chases, in 2018 there was a growing interest from
other nationalities such as the Filipinos or Americans, The most in demand properties in these areas are lar-
as well as some operations carried out by Chinese, ge-size homes of between 200 sqm and 400 sqm, with
Portuguese and Croats. prices that can exceed 10,000 euros / sqm. Nearby are
other districts, such as Goya and Lista, which throu-
The stately neighbourhood of Jerónimos is still the ghout 2018 have registered a rebound in prices by rea-
most in demand by foreigners who for work transfer ching 9,000 euros / sqm.
reasons or as a second residence spend long periods of
time in Spain and want to live near Retiro Park and be The main buyers for this type of property continues to
surrounded by the most representative monuments of be the upper-middle-class Spanish families, together
the capital. It must be said that Alfonso XII is the most with a new type of buyer that has emerged in recent
expensive street in the district with an average price of years with a more senior profile looking for a new home.
5,876 euros / sqm. In fact, the age range has risen significantly in the last
decade to account for 50% of purchases among the cus-
tomers who are between 36 and 60 years of age.

Serrano, Velázquez, Alcalá and Recoletos are the most
expensive streets in the district with average prices that
exceed 7,000 euros / sqm compared to an average price
of 6,800 euros / sqm in 2017.

Property prices in Salamanca
(Figures in euros / sqm)

Property prices in Retiro Recoletos Minimum Maximum Average
(Figures in euros / sqm) Castellana 4.934 11.029 7.060
Goya 4.125 10.200 6.500
Jerónimos Minimum Maximum Average Lista 3.959 9.355 5.876
Ibiza 4.500 10.500 7.000 Guindalera 3.478 9.230 5.806
Niño Jesús 3.853 6.729 5.140 Fuente del Berro 2.900 5.638 4.730
Adelfas 4.178 4.950 4.540 2.712 8.000 4.697
Pacifico 4.023 4.850 4.437
2.980 4.500 3.731

Market Trends. The Spanish Residential Market | 21

Chamartín and Tetuán

These are Madrid’s financial districts chosen by midd- Orense, Capitán Haya, General Perón and Edgar Nevi-
le-aged couples and professionals who appreciate living lle are the streets with the highest prices in the district,
in some of the most coveted residential areas of the city around 4,600 euro / sqm.
centre, such as El Viso and Castilla.
Property prices in Chamartín and Tetuán
Both of these neighbourhoods boast the most varied (Figures in euros / sqm)
international client profile compared to the significant
number of national buyers in other districts. The most El Viso Minimum Maximum Average
common foreigners are Venezuelans and Jordanians Nueva España 3.435 7.692 5.703
who prefer large-size homes of around 300 sqm with Hispanoamérica 3.675 6.035 5.200
swimming pool, garages and storage room, and the Chi- Prosperidad 3.604 5.938 5.000
nese whose objective is to obtain the Golden Visa by Castilla 2.500 3.250 4.344
purchasing apartments of up to 200 sqm within proxi- Ciudad Jardín 3.049 5.397 4.313
mity to Padre Damián School. Almenara 3.780 4.320 4.321
Castillejos 2.742 3.817 3.173
Paseo de la Castellana, Serrano, and Doctor Arce are the Cuatro Caminos 3.223 4.250 3.972
most expensive streets in Chamartín, reaching an ave- Valdeacederas 3.114 4.439 4.115
rage price of 7,500 euros / sqm. Bellas Vistas 2.657 4.318 3.054
Unlike the investors who have shied away, 98% of the 2.581 3.654 3.354
purchases are carried out by the knowledgeable and
informed Spaniards in the area looking for two-be-
droom apartments, mainly in Prosperidad, with which
they can make profits by renting them out.

In the adjacent district of Tetuán, the Cuatro Caminos
district mainly consists of national buyers, where 100%
of the sales managed by Engel & Völkers have been
carried out by Spanish clients. The most in demand type
of property is divided into flats with:

· Two bedrooms of up to 100 sqm for prices between
400,000 and 500,000 euros

· Three bedrooms with parking and footage of between
100 and 150 sqm with prices of up to 800,000 euros

· Four bedrooms or more, up to 200 sqm with prices
between 800,000 euros and 1.2 million euros.

22 | Market Report 2018-19 Spain and Andorra

Chamberí Fuencarral

The most authentic district of Madrid can boast of This district on the northwest of Madrid combines
having the greatest architectural heritage where the several highly-sought residential areas by the
19th and 20th century aristocracy built their private upper-middle class Spanish families who work in com-
villas. The palaces that used to be their residences panies with their headquarters located nearby. They
have now been converted into homes that are highly mainly look for flats, especially top-floor ones, sin-
desirable by the international clients, who account for gle-storey homes and townhouses. The detached
15% of purchases compared to 85% nationals. homes in Mirasierra are also in great demand, located
in plots of between 700 and 1,500 sqm and priced
The profile of the buyer in this district varies greatly between 1.1 and 2 million euros.
depending on the neighbourhoods, and ranges from
national upper-middle class families interested in resi- The traditional buyer in Mirasierra has joined many
ding in Almagro or Ríos Rosas, to foreign citizens see- foreigners in recent years, mainly Germans who live in
king a home for work transfer or as an investment. In Madrid and who choose this area since the German
the latter case, Gaztambide and Vallehermoso, due to School moved to Montecarmelo, with which there is a
their proximity to the University City, are the most direct connection. This less than 20-year-old neigh-
sought after areas for buying and renting to students. bourhood, in addition to the German community,
attracts younger buyers with small children, who are
International buyers include Latin Americans who are looking for a quiet residential area with lots of parks.
looking for high-rise homes with views - preferably Mirasierra and Montecarmelo are precisely the areas
penthouses – and square footage of between 180 and where the most expensive streets are located. With
250 sqm - in Trafalgar, Almagro and Ríos Rosas. The maximum prices of around 5,000 euros / sqm, La Masó
Venezuelans and Mexicans are the main buyers, and Nuria streets have become the most exclusive
followed by Filipinos, Italians, French and Portuguese. addresses next to Monasterio del Paular and Avenida
de Montecarmelo.
The average sale price in Chamberí exceeds 4,000
euros / sqm in all the neighbourhoods of the district
and for 2019, a 10% increase is expected. Fortuny and
Zurbano are the most sought-after and expensive
streets of the district, reaching an average price of
8,000 euros / sqm.

Property prices in Chamberí
(Figures in euros / sqm)

Almagro Minimum Maximum Average
RiosRosas 4.200 7.432 6.175
Trafalgar 4.416 7.134 5.048
Vallehermoso 3.885 6.079 5.128
Arapiles 3.515 5.280 4.373
Gaztambide 2.989 5.450 4.835
2.443 5.350 4.664

Market Trends. The Spanish Residential Market | 23

These are contrasting prices compared to those neigh- Moncloa - Aravaca
bourhoods in other districts, such as Peñagrande,
which, after a thorough renovation, still offers some EThe client profile of this district is very varied and mainly
detached homes and townhouses at highly attractive national. It ranges from upper-middle class families with
prices within the perimeter of the M-40. children at school or university age, middle-aged couples
who have lived in the area of Pozuelo-Majadahonda and
Property prices in Fuencarral and who are interested in returning to Madrid and finally young
Montecarmelo couples who have always lived in the area.

(Figures in euros / sqm) Argüelles remains the most premium area in Moncloa,
with Pintor Rosales, Paseo de Moret streets and a section
Mirasierra Minimum Maximum Average of Ferraz overlooking the temple of Debot as the most
Montecarmelo 2.650 4.259 3.384 exclusive neighbourhood. Both investors and individual
Peñagrande 4.192 4.606 4.405 customers who choose these areas tend to look for spa-
Fuentelarreina 2.261 4.500 3.265 cious apartments in stately buildings.
Arroyofresno 2.727 3.292 3.091
La Paz 2.261 4.579 2.900 In Aravaca, Valdemarín Avenue continues to be the most
2.632 4.663 3.549 exclusive area, along with El Plantio and El Barrial, consi-
dered to be some of the best areas with luxury properties.
The profile of the buyers consists of people with a medium
or high purchasing power, who are usually young families
with two or three children. The most in demand types of
properties that determine the prices in the area are pen-
thouses and duplexes. Similarly, there are also in-demand
properties in Puerta de Hierro, an emblematic urbanisation
of the district that has been around for more than 40 years,
which houses several embassies as well as the private resi-
dences of many ambassadors and diplomatic personnel. It
is the place chosen by many celebrities who seek absolute
privacy in an environment very close to Monte de El Pardo
and the centre of the city.

Property prices in Moncloa and Aravaca
(Figures in euros / sqm)

Argüelles Minimum Maximum Average
Puerta de Hierro 3.801 4.281 4.806
Ciudad Universitaria 1.751 3.785 2.900
Valdemarín 3.831 3.840 3.849
Aravaca 1.802 7.917 4.301
El Plantío – La Florida 1.785 7.058 3.867
1.124 7.886 2.748

24 | Market Report 2018-19 Spain and Andorra

Ciudad Lineal Hortaleza

With a highly stable and solid demand in all the neigh- Hortaleza is the district of Madrid where there is a
bourhoods that make up this district, Ciudad Lineal can greater contrast both in the types of houses it offers
be divided into two very different areas, according to and in the profile of the investor. The price ranges
property type and buyer profile. from a minimum of 1,400 euros / sqm that can be
found in Canillas to 9,000 euros / sqm that is paid in
In the first one, formed by the northern neighbourhoods La Piovera.
of (Costillares, Atalaya, Colina, San Juan Bautista and
Pascual) close to Chamartín, the most in-demand homes The latter includes the prestigious Conde Orgaz Park,
are 3-4 bedroom apartments with communal facilities, where the most exclusive communities of detached
such as swimming pool and garden within a wide range homes coexist next to semi-detached houses and more
of prices between 2,000 and 6,000 euros / sqm. affordable properties in the park that have a lower ave-
rage price of 4,400 euros / sqm. Along with this area,
In the second one, formed by the neighbourhoods loca- the new-builds in Palomas also stand out.
ted further south (Concepción, Quintana, Ventas and
Pueblo Nuevo), prices fall to minimums of 1,000-1,200 In the rest of the district’s neighbourhoods, the oldest
euros / sqm in Pueblo Nuevo and Concepción. buildings are replaced by larger and more modern
ones, including those located in Gran Vía de Horta-
Despite these price differences, the most expensive area leza, with all the comforts one would need as well as
stands out near Arturo Soria, which is undoubtedly the some spectacular penthouses.
main artery of the district, where the most in-demand
properties are in fully serviced communities and Property prices in Hortaleza
well-connected with the city centre. (Figures in euros / sqm)

Property prices in Ciudad Lineal Apostol Santiago Minimum Maximum Average
(Figures in euros / sqm) Pinar del Rey 1.700 5.000 3.100
Canillas 1.500 5.000 3.100
Costillares Minimum Maximum Average Piovera/Conde Orgaz 1.400 6.000 3.500
Atalaya 2.000 5.700 4.000 Palomas 2.000 9.000 4.400
Colina 2.800 5.500 4.450 1.800 7.700 3.600
San Juan Bautista 2.300 7.000 4.500
San Pascual 2.500 5.700 4.100
Concepción 2.200 6.000 3.800
Quintana 1.200 5.600 3.300
Ventas 1.600 5.000 3.000
Pueblo Nuevo 1.700 4.500 2.800
1.000 4.600 2.600

Market Trends. The Spanish Residential Market | 25

Sanchinarro, Las Tablas Barajas - San Blas
and Valdebebas

Located in the north of Madrid, these are very recent These districts located close to the Madrid airport are
neighborhoods, whose construction began at the a good option for those middle-class Spanish families
beginning of 2000s. They are mainly residential and looking for homes in residential buildings near Madrid
family areas, where the headquarters of important Spa- and equipped with a pool and communal areas.
nish companies, such as Telefónica, BBVA, and the
international firms, Renault and BMW, are located. The wide range of properties is focused on two main areas:

As these are very recent residential neighbourhoods · Composed by Alameda de Osuna, Campo de las
with mainly young families who have average purcha- Naciones-Corralejo has higher property prices, with
sing power, the demand is mainly focused on two to an average price of 4,500 euros / sqm in Paseo de la
three bedroom properties. In fact, there are few who Alameda.
have four bedrooms despite the fact that there is also
demand for these homes. · Las Rosas and El Salvador are highly sought by
families who are looking for their first home and are
The most in-demand area is Sanchinarro, where El looking for new houses with 2-3 bedrooms with all
Corte Inglés and Sanitas La Moraleja Hospital are the facilities. Niza Avenue and Tampico Street are
located, and Las Tablas, with BBVA and Telefónica considered as the most expensive streets of the two
offices. Valdebebas does not currently have as much neighbourhoods.
demand due to lack of public transport and amenities,
such as schools, restaurants, pharmacies. However, it Property prices in Barajas and San Blas
is a growing neighbourhood where the new-builds (Figures in euros / sqm)
and off-plan property purchases prevail . There are
two buyer profiles. On the one hand, the Spanish Alameda de Osuna Minimum Maximum Average
investors who buy one-bedroom homes; and on the Campo de las 1.900 5.000 3.300
other, families who look for a minimum of 2 bedrooms Naciones/Corralejo
to rent as they want to work for companies that are San Blas/Rosas 1.550 5.600 3.300
based in the area. San Blas/El Salvador 2.100 4.250 3.000
2.400 5.300 3.500
The most popular streets in Sanchinarro are Vicente
Blasco Ibañez and Americo Castro, while Cebreiros
and Luis Martínez Feduchi are the most expensive in
Las Tablas and Valdebebas, respectively.

Property prices in Sanchinarro,
Las Tablas and Valdebebas
(Figures in euros / sqm)

Sanchinarro Minimum Maximum Average
Las Tablas 2.354 4.678 3.795
Valdebebas 3.888 3.910 3.899
4.300 4.429 4.365

26 | Market Report 2018-19 Spain and Andorra


Renovated flats of around 100-120 sqm, with two But the highlight of 2018 has been the so-called
bedrooms and two bathrooms, well located and with a ‘Airbnb phenomenon’, which has boosted the house
price between 1,400-1,600 euros per month; although prices, especially the ones located in very central nei-
this is the description of the star property for rent in ghbourhoods such as Sol. The strong tourism in these
Madrid, the type of property most in demand varies areas has resulted in 90% of the property sales to be
greatly according to the areas. While in the downtown carried out by investors who want to use the property
neighbourhoods of the capital, customers look for for short-term holiday lets.
two-bedroom apartments, renovated and unfurnished,
leaving the central almond surrounded by the M-30, The rental portion in Madrid is shared between 59%
we can find more demands for homes, both detached Spaniards and 41% foreigners. With regards to the
and flats, including garden, swimming pool and sports foreign tenants, North Americans account for 7%,
facilities. followed by the French (6.3%) and Venezuelans (5%).

By price, the rental demand focuses on properties The price shoots up in the districts of Salamanca, Cen-
below 2,000 euros a month with good location or, at tro and Chamberí, where they reach 30 euros / sqm. In
least, well connected with public transport, with a these areas, the streets of Serrano and the Salesas and
wide range of shops, amenities, and parks. During the Olavide plazas boast the highest rental prices.
past year, Engel & Völkers has seen how the average
time a house stays on its portfolio varies depending on Rental prices in Madrid
its price range. Those that were advertised for less than (Figures in euros / sqm)
2,000 euros a month were rented in less than a month.

Centro Minimum Maximum Average
Salamanca 8,48 30,00 20,70
Chamartín 8,47 29,17 19,65
Chamberí 9,00 29,41 17,53
Moncloa 7,47 28,95 19,44
Hortaleza 4,32 22,43 14,18
Tetuán 5,81 18,57 12,62
Retiro 8,15 19,14 14,80
Noroeste 10,80 26,32 16,72
Norte 3,60 19,83 10,75
3,40 9,34 7,34

Market Trends. The Spanish Residential Market | 27

Madrid’s Surroundings

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

(Zona Norte)

Majadahonda Madrid

Boadilla del Monte Pozuelo

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

28 | Market Report 2018-19 Spain and Andorra

Madrid’s Surroundings

Pozuelo - Boadilla del Monte

According to the Urban Indicators for municipalities These large developments of detached buildings on the
of more than 20,000 inhabitants published by the INE outskirts, as well as Avenida de Europa, characterised
in 2018, Pozuelo de Alarcón and Boadilla del Monte by blocks of properties on up to five floors, are consi-
are, together with Las Rozas de Madrid, the municipa- dered as the areas inhabited by the population with the
lities with the highest average annual income per greatest purchasing power in the municipality.
capita in Spain.
The offer in the northwest area of Madrid consists of
The first one forms an urban continuum with Madrid high-quality housing and luxury developments, with
through Aravaca, with which it appears to form a sin- high security features and excellent services. These
gle nucleus, while the other two are further away from can be villas with more than 200 sqm and four
the capital. Pozuelo de Alarcón can be divided into bedrooms, with garden and swimming pool, with pri-
two different parts: the Station, next to the train sta- ces around one million euros.
tion, and the town, the true centre of the municipality
and where most of the services are located in. Both are The average price of housing in Pozuelo de Alarcón
surrounded by developments such as Somosaguas, stood at 3,208 euros / sqm in 2018, while in Boadilla
Montealina, Montegancedo and Monteclaro as well as del Monte it was at 2,349 euros / sqm and Villaviciosa
important business parks, such as Ática and La Finca. de Odón, at 1,837 euros / sqm.

Market Trends. The Spanish Residential Market | 29

Property prices in Pozuelo de Alarcón Property prices in Boadilla del Monte
(Figures in euros / sqm) (Figures in euros / sqm)

Minimum Maximum Average Minimum Maximum Average
1.414 827
Montealina 1.565 4.818 2.688 Parque Boadilla 829 2.643 1.737
Prado Largo 1.574 Las Lomas 1.140
La Cabaña 1.792 5.000 2.797 Bonanza 1.179 8.000 2.235
Monteclaro-Urb. Las Encinas 2.340 Valdecabaña 773
La Finca 1.986 4.091 2.422 Valdepastores-Las Encinas 1.454 3.371 2.127
Prado De Somosaguas 1.219 Viñas Viejas 915
Somosaguas 2.185 6.133 2.949 El Olivar 1.274 3.477 2.357
Zona Norte 1.689 Sector B 1.592
Zona Estacion 1.511 7.600 3.560 Sector S 1.708 4.118 2.684
Zona Pueblo 1.307 Centro 1.072
Zona Avenida De Europa 4.530 3.538 Monteprincipe 3.833 2.359

6.203 2.996 3.438 2.003

7.091 3.308 4.000 2.612

8.476 3.194 3.890 2.676

5.467 2.998 4.178 2.976

6.071 3.864 4.172 2.178

The profile of the client consists of up to 99% of pur- Property prices in Villaviciosa de Odón
chases coming from Spanish families with high purcha- (Figures in euros / sqm)
sing power who search for detached homes in safe and
secure neighbourhoods and close to international El Bosque Minimum Maximum Average
schools. The remaining 1% of buyers are foreigners led Centro 824 3.871 1.787
by South Americans (Venezuelans, Argentines, Mexi- Castillo - Campodon 497 4.808 2.388
cans and Colombians), followed by Europeans and 612 3.667 1.623
North Americans, with some purchases carried out in
2018 by clients from Lebanon and Thailand.

30 | Market Report 2018-19 Spain and Andorra

Las Rozas - Majadahonda

The third municipality with the highest per capita Throughout 2018, there was a reduction in the average
income in Spain consists of a similar type of housing time it took to sell a property in these areas. While in
and a buyer profile to the previous two. The highlight Las Rozas, the large-size houses exceeding one million
of 2018 was the price increase of 18%, which leaves euros tend to spend less time being on the market,
no margin for the increase for 2019 and could even from 12 months to 8-9 months. In 2017, the houses in
drop in some areas due to the existing huge supply. Majadahonda with prices below 500,000 euros went
from an average of six months on the market to just
In Las Rozas and Majadahonda the demand is focused four months.
on penthouses and apartments in the centre, mainly by
Spanish families, and in apartments of more than 200 Property prices in
sqm and large detached villas sought by foreigners or Majadahonda-Villafranca del Castillo
nationals who want to move away from the city centre
and look for more space . Here, unlike other areas of (Figures in euros / sqm)
northwest Madrid, international customers account for
30% of the purchases led by South Americans, who Monte del Pilar Minimum Maximum Average
prefer detached houses with plots of around 2,000 Centro 1.650 5.500 3.400
sqm, and Asians looking for villas of more than 500 Golf 1.700 4.200 2.997
sqm or large apartments with 24 hour security. Norte 1.882 4.400 3.400
Carretera del Plantío 1.450 4.200 2.600
Property prices in Las Rozas Villafranca del Castillo 1.350 4.200 2.500
(Figures in euros / sqm) 750 3.400 1.850

Club de Golf Minimum Maximum Average
Molino de la Hoz 850 3.500 1.700
Punta Galea 975 3.375 1.800
Centro 925 4.100 2.350
La Marazuela 1.200 4.150 2.850
El Burgo 675 5.000 2.650
Monte Rozas 1.650 4.300 2.500
945 2.900 1.900

Majadahonda is one of the most popular locations in the
northwestern area of the capital, where the Monte del
Pilar area stands out, consisting of the most modern
houses and the best developments, and the Golf area,
which is highly sought by health care professionals due
to the its proximity to the Puerta de Hierro hospital.

Market Trends. The Spanish Residential Market | 31

La Moraleja

Located in the north of the metropolitan area of cans. In 2018, Engel & Völkers sold a house in La
Madrid, the area is subdivided into three urbanisa- Moraleja to a foreign client worth more than 10 million
tions: La Moraleja, El Soto de la Moraleja and Encinar euros, a record figure rarely reached in recent years.
de los Reyes. Close to Arroyo de la Vega, where a large
number of multinationals have established their head- Below this price level, around six million euros is the
quarters, the most popular properties are flats, especia- average asking price in two emblematic streets:
lly penthouses and ground floor properties, between Camino Sur and Paseo Marquesa Viuda de Aldama.
150 and 250 sqm, although there is a growing interest The detached house on a large plot -in some cases it
for detached homes in private estates with communal can reach up to one hectare of land- is the typical pro-
areas, which are very scarce in La Moraleja. perty type on both of these streets.

The client profile is someone who looks for a multicul- Property prices in La Moraleja
tural environment to live near some of the best private (Figures in euros / sqm)
and international educational centres in Spain just 15
minutes from the centre of Madrid. These are the deter- Minimum Maximum Average
mining factors for many expats who choose La Mora- 4.748
leja to live in, initially to rent a property before buying La Moraleja 4.368 5.127 3.325
at later stage. Around 19% of the owners are foreigners Soto de La Moraleja 4.900
and in recent years there has been an increase in Latin El Encinar de los Reyes 2.820 4.545 3.632
American clients, especially Venezuelans and Mexi- Arroyo de la Vega
4.000 5.639

3.236 4.144

32 | Market Report 2018-19 Spain and Andorra

Zona Norte

In the area to the north of the capital there are three very Finally, Cobeña and Paracuellos del Jarama offer a wide
different regions. The first, located around the National range of properties with communal areas and an ave-
I (Fuente del Fresno, Ciudalcampo and Santo Domingo), rage price of around 1,800 euros / sqm.
is made up of detached homes in plots of about 3,000
sqm within luxury residential developments. The buyer Property prices in la Zona Norte de Madrid
profile is marked by Spanish and foreign families with (Figures in euros / sqm)
high purchasing power, usually entrepreneurs or multi-
national executives with an average of three children Minimum Maximum Average
looking for large houses with swimming pool and gar- 1.200
den. Prices can reach 5,000 euros / sqm as in the case of San Sebastián de los Reyes 800 4.500 2.600
the Ciudalcampo urbanisation. Algete 1.175
Cobeña 600 3.000 1.600
The second is formed by municipalities, such as San Ciudalcampo/Santo Domingo 780
Sebastian de los Reyes and Algete, where medium-sized Paracuellos 2.600 1.800
Spanish families looking for a villa outside Madrid who
can not afford the houses in the previous areas, can 4.600 2.190
choose between small houses in the urban area at 900
euros / sqm and newly built properties. The latter, both in 3.200 1.800
buildings and townhouses, are priced at around 4,000
euros / sqm including garage, swimming pool and com-
munal garden areas.

Market Trends. The Spanish Residential Market | 33



1.608.746 34.669 EUR 27.558 € 4.515 €/m² 2%
Population or number Average Gross Disposable Average Price Interannual
of inhabitants Income Income 2018

In 2018, house prices in Barcelona increased by 2% and The rental market was affected in 2018 by two reasons:
exceeded 12% in the outer areas of the city. This is a change a growing number of tenants in central areas moved to
of trend with respect to previous years and it will continue the outskirts of the city and there was a decrease in the
throughout 2019 due to three factors: the different price number of foreigners looking to rent a house during the
levels, the different types of buyers and the increasing first 6 months of the year before their numbers started
number of tenants who are becoming home owners. increasing during the second half of the year.

Throughout the first quarter of 2019, it is foreseeable By 2019, the real estate market will take a year to pause
that the house prices in Barcelona are about to expe- in Barcelona capital, although in the surroundings it
rience a slight drop in the most premium areas. This will once again record double-digit growth. Even though
will be a great opportunity for buyers and it will turn in 2019 the prices will fall in the Catalan capital, the
the Catalan capital into a very attractive city compared decrease will be prompt and in no case should it be
to other European cities. The increase in economic and considered as a real estate bubble. There will not be a
political stability will cause the huge return of foreign crisis nor will it occur in the near future.
investors who are attracted by the favourable conditions
for doing business as well as the climate and the incom-
parable quality of life of the city. In turn, the continuity
of low interest rates, the wage increases, the rise in
employment and the ease of granting mortgages by
banks will cause a medium term increase in the number
of national buyers.

With regards to the outer area of the city, the forecast
is of continuity in the growth of prices and purchases.
In many locations the price increase will even exceed
15% and in the entire periphery of Barcelona it will be
around 10%.

34 | Market Report 2018-19 Spain and Andorra

Districts of the city of Barcelona


Sarrià-Sant Gervasi Nou Barris

Les Corts Gràcia Sant Andreu
Sants-Montjuïc EixEaimxapmleple Sant Martí

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 €

Les Corts 6.330 Sant Martí 4.500 Sant Andreu 3.840
Sarrià-Sant Gervasi 5.950 Sants-Montjuïc 4.090 Nou Barris 3.510
Eixample 5.400 Gràcia 3.980 Horta-Guinardó 3.020
Ciutat Vella 5.200

Market Trends. The Spanish Residential Market | 35

Districts of Barcelona

Ciutat Vella

The proximity to the sea and the great cultural offer of Property prices in Ciutat Vella
Ciutat Vella places this district in the top favourite list (Figures in euros / sqm)
of interested investors who want to buy a second home
both for holiday use and to rent out. These investors Raval Minimum Maximum Average
are, together with the young couples, the main buyers Gótico 2.000 4.500 3.000
in the more trendy and sought-after neighbourhoods Barceloneta 2.500 5.100 3.800
like El Born and Gótico, where the most popular pro- Sant Pere, Santa 3.500 5.500 4.500
perty type is a flat with two bedrooms, two bathrooms Caterina i Ribera
and terrace. 3.500 6.500 5.000

However, the best advantage of the homes in this district In 2018, the international clients led the purchases in
is that they have preserved their original features like the district by up to 58% compared to 42% by national
hydraulic tiles and original woodwork and they are loca- buyers. In the lead are the French, with 20% of the
ted in stately buildings with modernist details. There is a purchases, followed by 12% Chinese, Italians (8%),
rise in families looking for properties in Gótico and Born Swedes (8%) and the rest were Dutch, Austrians, Bel-
area and investors in Raval and Barceloneta. gians, German and Americans.

The price adjustment experienced last year in the most
prime areas of Ciutat Vella was around 15%. For 2019,
stability in prices is expected with an increase in the
number of purchases by the national client and the
lack of international buyers.

36 | Market Report 2018-19 Spain and Andorra

Eixample Sants-Montjuïc

Passeig de Gràcia, Rambla de Catalunya, Enric Granados This district has still maintained its real estate growth,
and Passeig Sant Joan are the most sought-after streets which began in 2017 thanks to an increase in property
in the elegant area of Eixample. Passeig de Gràcia is a demand and prices. This rebound stems from Miquel
prestigious area and has always boasted of having the Bleach and Salvà streets, located in the neighbourhoods
most stately homes in Barcelona. This area directly com- of Hostafrancs and Poble Sec, respectively, as the most
petes with the pleasant Rambla and the quiet and semi-pe- expensive areas in the district after reaching average pri-
destrian Enric Granados. The last area is perfect for ces of around 5,800 euros / sqm.
walking and well connected to the city. Passeig Sant Joan
is highly popular for having more affordable homes than Urban transformation, which aims to restore the dis-
the rest of the mentioned areas. trict’s traditional architecture, as well as its central loca-
tion and the varied leisure and gastronomic offer attract
In 2018, the average price of apartments in Passeig de both national and international clients. The first accounts
Gràcia reached 10,410 euros / sqm, which is double the for 85% of purchases who are young couples and singles
amount of 5,038 euros / sqm in Passeig Sant Joan. The looking for their first homes. These properties range
district with the most purchases in 2018 (up to 40%) was between 50 and 80 sqm and investors who buy such pro-
Eixample Dret, followed by Eixample Esquerra, with perties do so for letting purposes.
23% of purchases.
On the other hand, 15% of purchases made by foreigners
The situation in the nerve centre of the city has placed from Asian countries focus on homes located in classic
Eixample in the crosshairs of international clients, estates that have preserved their original features.
accounting for 52% of the purchases of the district com-
pared to 48% national buyers. The Chinese have been
the top buyers with 15% of the purchases in 2018,
followed by the French and Americans (12%) and Poles
(10%). 12% are from other European countries and 39%
are from the rest of the world.

The most sold types of properties are penthouses and
mainly large-size houses with high ceilings, original fea-
tures, such as cement tiles and large terraces.

Property prices in Eixample Property prices in Sants-Montjuïc
(Figures in euros / sqm) (Figures in euros / sqm)

Eixample Esquerra Minimum Maximum Average Hostafrancs Minimum Maximum Average
Eixample Dret 3.990 6.960 5.410 La Bordeta 4.120 5.880 4.710
Sagrada Familia 3.770 11.760 5.650 Sants-Sants 3.500 4.420 4.000
y Fort Pienc Sants-Badal 3.170 4.880 3.990
Nova Esquerra 3.380 8.190 4.750 Font de la Guatlla 2.940 2.940 2.940
y Sant Antoni Poble Sec 3.310 4.660 3.930
3.360 7.650 4.650 La Marina del Port 2.540 5.810 4.360
3.470 4.290 3.760

Market Trends. The Spanish Residential Market | 37

Les Corts

The most premium neighbourhood in this district is the
sophisticated Pedralbes that, framed between the hills
of Collserola and Avenida Diagonal, is within easy
reach to the city. Pearson Avenue remains as one of the
most expensive addresses in Barcelona, reaching an
average price of 10,000 euros / sqm.

Detached houses of up to 700 sqm, with at least six
bedrooms, on plots of more than 1,500 sqm with large
garden and absolute privacy and views over the city are
the typical properties found in this prestigious avenue.
The buyer profile of these homes is mostly foreigners
from different nationalities such as Russian, Ukrainian,
Swiss, American and Romanian, and many of them are
entrepreneurs and athletes.

The rest of the district, which perfectly combines the
residential character with the hustle and bustle of all the
services it offers, has a high demand from national cus-
tomers. With an average price of around 4,500 euros /
sqm, the most common buyers are families with chil-
dren who are looking for semi-detached houses or
apartments with a minimum of three bedrooms and over
100 sqm.

Les Corts entered a period of maturation in 2018 in
which there were still purchases carried out, but it didn’t
experience significant price increases.

Property prices in Les Corts
(Figures in euros / sqm)

Pedralbes Minimum Maximum Average
Pearson 5.130 7.920 6.330
Les Corts 7.090 13.880 10.490
Maternitat i Sant Ramon 3.740 5.880 4.860
3.390 5.500 4.380

38 | Market Report 2018-19 Spain and Andorra

Sarrià – Sant Gervasi

Sarrià, Sant Gervasi and Turó Park have a wide offer of Property prices in Sarrià – Sant Gervasi
properties ranging from penthouses to large detached (Figures in euros / sqm)
family homes with gardens. The average price of these
properties is over 4,700 euros / sqm. Sant Gervasi – Galvany Minimum Maximum Average
4.210 6.530 5.330
The profile of the buyer consists of people with a high
purchasing power who are mostly locals, although the El Putxet i el Farró 2.950 7.320 4.720
international buyers did emerge in 2018. These clients
have shown particular interest in properties in the high Sant Gervasi – 3.300 8.300 5.350
zone with prices over 3 million euros, which is a safe La Bonanova
investment for them. Sarrià (Santa Amèlia – 4.710 8.160 6.370
Casco Antiguo) 5.830 6.440 6.040
Turó Park and Tres Torres remain as the most sough-af- Les Tres Torres 2.520 4.170 3.290
ter locations. Vallvidrera 4.400 5.380 5.000
Balmes 4.980 10.050 6.990
During 2018, the housing market slowed down and as a Turó Park
result, it took on average 8 months to sell a property.
Looking ahead to 2019 we foresee a gradual adjustment
in prices to respond to the national client’s demand.

Market Trends. The Spanish Residential Market | 39

Gràcia and Horta-Guinardó

The charming Gràcia district continues to attract inter- For its part, in the adjoining district of Horta-Guinardó,
national clients who show a clear preference for Bar- buyers choose to reside in one of the most emblematic
celona’s bohemian neighbourhood par excellence. The areas of Barcelona. The oasis of Font d’en Fargas where
wide and varied gastronomic and cultural offer, which the demand, which is mainly from domestic buyers,
has often been referred to as ‘Brooklyn’ or ‘Soho’ of focuses on houses with garden, detached or semi-deta-
Barcelona together with the variety of amenities and ched properties, joins the other areas of the district
services, have turned this area into one of the most where two or three bedroom flats are in high demand.
attractive districts.
Property prices in Gràcia and Horta-Guinardó
Vila de Gràcia, which comprises of 5 neighbour- (Figures in euros / sqm)
hoods, has an average property price of 6,250 euros /
sqm, followed by Rambla del Prat, Verdi, Torrent de Gràcia Nova Minimum Maximum Average
l’Olla and Gran de Gràcia, which have all reached a La Salut 3.200 5.490 4.530
stage of maturity. For 2019, the prices are set to Vallcarca-Penitents 2.860 4.290 3.120
become stabilised. Vila de Gràcia 1.370 4.510 3.110
Font d'en Fargas 2.710 7.660 5.170
While the French, Italian and English clients look for Guinardó 3.360 4.030 3.780
one or two bedroom flats to rent, the Brazilians, Serbs, Montbau 2.190 3.710 3.020
Austrians, Argentines and Spaniards prefer larger 2.010 2.750 2.260
homes or top-floor flats to live with their family.

40 | Market Report 2018-19 Spain and Andorra

Nou Barris and Sant Andreu Sant Martí

The urban changes linked to the arrival of the new AVE The profile of the buyer in the growing district of Barcelona
train station are the key to the revival of Sant Andreu, a consists of national clients. Spanish buyers account for
district that experienced the highest price rises in 2018 80% of purchases compared to 20% by foreigners, led by
with 5,790 euros / sqm. The new La Sagrera railway the Chinese, Russians and Nordics who look for high-rise
station is a major high-speed train station in Barcelona flats in modern buildings.
and has increased the district’s desirability.
Diagonal Mar, the industrial zone that has been transformed
This area, where the most modern and innovative charac- in recent years in one of the most premium areas of Bar-
ter of Barcelona is fused with the presence of the ancient celona, is the most sought-after location for these interna-
nucleus, will cause profound changes in the lower part of tional clients who have accounted for 40% of purchases in
the neighbourhoods of Sagrera and Sant Andreu. 2018. Next to the beach of Llevant and well connected with
the centre of the city by public transport, the properties are
spaces, bright and airy, and boast spectacular views of the
sea or the park.

The price of Diagonal Mar homes, which are highly popu-
lar among investors, range between 5,000 and 12,000 euros
/ sqm, a maximum amount which exceeds figures in the
most exclusive neighbourhoods in the city.

Much more affordable, in the price range of 4,500-5,500
euros / sqm of moves the housing of other areas of the
district that are sought by customers, such as Vila Olímpica,
Poblenou and El Clot, the latter being in high demand. In
Vila Olímpica, the demand is focused on large apartments
of about 150 sqm with communal areas and garage, while
in Poblenou, Spanish families make up the buyer profile
of 3 bedroom and 2 bathroom flats.

Nou Barris, however, still has room for improvement in Property prices in Sant Martí
terms of easier access to financing by the banks, impro- (Figures in euros / sqm)
ving the job market and being perceived as a district
where investment opportunities with which you can Vila Olímpica Minimum Maximum Average
make big profits through buy-to-lets and capital appre- 3.200 5.500 4.500
ciation exist.
Property prices in Sant Andreu Parc i la Llacuna 3.800 5.000 5.550
(Figures in euros / sqm) del Poblenou 3.500
Nou Barris Minimum Maximum Average Poblenou 5.100 6.000
Sant Andreu 1.870 4.760 3.510 Provençals del Poblenou 3.000 4.000 7.000
2.260 5.790 3.840 Clot 3.800 5.000
Diagonal Mar
i Front Marítim 5.000 11.000

Market Trends. The Spanish Residential Market | 41


In 2018, the rental market in Barcelona has achieved The Areas Most in Demand
the longed for stability in prices. Although there is
balanced supply and demand, prices would still need to Engel & Völkers focuses its rental activities on the most
decrease in order to meet the demands of the national popular districts of Barcelona: Ciutat Vella, Sarrià-Sant
client. However, the approval of the new decree law Gervasi, Eixample, Les Corts, Gràcia and Sant Martí.
could draw a scenario in which there is a reduction in Nevertheless, the growing demand can be seen in El
property supply that would not be give margin to the Vallès, mainly in Sant Cugat, and Badalona.
price drop.
The streets with the most rental demand in 2018 were
It is expected that throughout 2019, the more central Passeig de Gràcia, between Passeig Sant Joan and Urgell,
locations could see rent price stability while in the most where the average prices are around 20 euros / sqm.
affordable neighbourhoods or the outer areas of the city
a slight increase in rental prices might be on the cards. • Ciutat Vella: The continuous demand for rental pro-
perty within the old part of the city has kept the average
price at 20 euros / sqm in 2017, the highest in Barce-
lona next to Eixample. The most searched properties
for rent are between 50-80 sqm.

• Eixample: Furnished and well-located properties in
the most emblematic streets of the city, with special
interest in modern architectural estates with character,
are the most sought after in a district where the average
price equals Ciutat Vella within the 20 euros / sqm
range. The monthly rent is on average 1,670 euros.

• Sarrià-Sant Gervasi: Foreign families looking for
properties that are over 150 sqm in the most exclusive
areas make up the profile of the tenants in a district
where the proximity to international schools in the
area is highly valued. The average income that tenants
pay in this area exceeds 2,300 monthly euros.

42 | Market Report 2018-19 Spain and Andorra

• Les Corts, Gràcia y Sant Martí: in these areas, there
is strong demand both nationally (because of its nei-
ghbourhood, the residents who have always lived in
Gràcia, Les Corts, and Poblenou and want to continue
living there) and as for the international clients, they
are attracted by the proximity to centre of the city and
for the uniqueness of these areas. Diagonal Mar is one
of the main highlights as it’s chosen by the internatio-
nal client for its modern properties that boast views
towards the sea and the beach.

The most popular homes in these districts are between
50 sqm and 90 sqm, with average prices that are around
16.5 euros / sqm in Les Corts and Gràcia and 19 euros
/ sqm in Sant Martí.

There are two factors that will be the main driving for-
ces behind the increased demand: on the one hand, the
increase in the number of young people leaving home
and wanting to live on their own thanks to more emplo-
yment and, on the other hand, the international demand
that will continue with full force in the city. In terms of
property supply, it should be noted that more and more
rental homes are of high quality since most of the pro-
perties that were previously rented out have now been
sold so investors look for more renovation properties
to buy for cheap before renting them out for profits.

Rental prices in Barcelona
(Figures in euros / sqm)

Sarrià-Sant Gervasi Minimum Maximum Average
Eixample 14 20 17
Ciutat Vella 14 30 20
Les Corts 16 25 20
Gràcia 14 20 16,5
Sant Martí 14 20 16,5
15 30 19

Market Trends. The Spanish Residential Market | 43

Badalona and Hospitalet

Santa Coloma Badalona
de Gramanet

Sant Adrià
de Besòs




44 | Market Report 2018-19 Spain and Andorra

Badalona Hospitalet

The construction of the harbour and the extension of the This municipality is part of the metropolitan area of
port docks represent a total renewal for the real estate Barcelona and only 8 km from the centre of the city.
market of the outskirts of Barcelona. The increase in This is the area chosen by families and young couples
demand in Badalona will continue throughout 2019 and who are looking for buy their first home.
prices will be an average of 2,560 euros / sqm. In areas
such as Sant Adrià de Besòs, the property prices have The real estate market of Hospitalet has a high percen-
already reached 3,720 euros / sqm. tage of national clients. 90% of buyers are Spanish
compared to the remaining 10% who are foreigners, led
With the high percentage of national buyers who make by the Chinese.
up 90% of the purchases carried out in Badalona in
2018, the profile consists of those who opt for well-lo- The pre-owned flats of about 90 sqm are the most in
cated 3 bedroom flats of around 100 sqm with garage demand at prices in the range of 3,000 euros / sqm.
close to the centre or near the sea.

Property prices in Badalona Property prices in Hospitalet
(Figures in euros / sqm) (Figures in euros / sqm)

Badalona Minimum Maximum Average Hospitalet Minimum Maximum Average
2.010 3.070 2.560 2.580 3.780 3.180

Market Trends. The Spanish Residential Market | 45

Barcelona’s surroundings

Vallès Oriental

Vallès Occidental


Baix Llobregat


Vallès Oriental and Occidental
Baix Llobregat

46 | Market Report 2018-19 Spain and Andorra

Barcelona’s surroundings

Vallès Oriental and Occidental

El Vallès is an increasingly popular option among fami- trend in prices continues in 2019, although in a more
lies who are looking for a well-connected first residence, sustained way.
with a wide range of amenities and parks. The most in
demand properties are detached houses and townhouses In Sabadell, where demand is shared between English
that range between 250 and 300 sqm. type townhouses and terraced apartments, preferably
located in the centre, the average property price comes
In 2018, 50% of the buyers in this area were buy-to-let at 1,900 euros / sqm, a higher amount than in two of the
investors. In Vallès Occidental, the foreign client most outstanding towns in Vallès Oriental: Cardedeu and
accounted for 20% of the purchases and in Vallès Orien- Caldes de Montbui. These two areas, next to urban cen-
tal, 10% of the buyers were foreign. tres and excellent road connections with Barcelona are
the most in demand and their property prices have reached
Sant Cugat remains the most premium area, with an 1,880 euros / sqm and 1,320 euros / sqm, respectively.
average price of 3,320 euros / sqm. The most expensive
areas that are close to this town are located 12 kilome- Property prices in Vallès
tres from Barcelona. These include Eixample / Torre- (Figures in euros / sqm)
blanca, where prices have reached the highest in Sant
Cugat (5,280 euros / sqm), followed by Parc Central / Vallès Occidental Minimum Maximum Average
Can Matas and Mirasol, where they range between 4,770 Vallès Oriental 700 5.280 2.790
and 4,500 euros sqm, respectively. The entrenched but 600 2.990 1.640
growing demand in Sant Cugat goes hand in hand with
the continuous increase in Sabadell, where the upward

Market Trends. The Spanish Residential Market | 47

Matadepera Rentals

In the Vallès Occidental region, there is a municipality The rental properties most in demand are the 3 bedroom
located at the foot of the Sant Llorenç del Munt Moun- flats and townhouses that have communal areas . In
tain only 35 minutes from Barcelona. Matadepera urbanisations, the properties with the highest demand
offers more affordable properties than other locations from tenants are detached houses with garden. These
closer to the city in a natural and peaceful environment are especially popular among tenants between 35 and
highly valued by young middle class families with 45 years of age with children. With regards to centrally
young children. located flats, the profile of the tenant consists of young
couples and people from 60 years of age upwards.
In 2018, the average property price increased by 5%
compared to the previous year, the same increase is In 2018, the average rent price in Matadepera was
expected for 2019. The increase in new-builds by pri- between 6 and 9 euros / sqm. In a market with scarce
vate sellers who buy a plot of land and build a house supply it is foreseen that prices could increase by up to
on it will boost the residential market to grow by up to 5% in 2019.
15% -20% more compared to the previous year.
Rental prices in Matadepera
The price increases have been mainly registered in the (Figures in euros / sqm)
centre, the Golf-Can Vinyers and Verge de Montserrat,
where the most expensive addresses are located in Centro Minimum Maximum Average
Matadepera, especially in Passeig Àngel Guimerà, Verge de Montserrat 7 11 9
where the highest average price is between 3,000 and Golf/Can Vinyers 8 11 9
2,500 euros / sqm. Can Prat/La Plana 8 11 9
Cavall Bernat/Can 7 11 9
The majority of buyers are from the region of Vallès Robert
Occidental, a small number come from Barcelona and Can Solá del Racó/Pla 5 66
its surroundings and finally, foreigners from the EU de Sant Llorenç 5 66
make up an even smaller proportion. Les Pedritxes/Rourets 5 66

Property prices in Matadepera
(Figures in euros / sqm)

Minimum Maximum Average
Golf 1.400 2.900 2.600
Cavall Bernat/Can robert 2.150
Centro 1.650 2.300 1.850
Drac parc 1.900
La plana/Can prat 1.250 3.700 2.925
Pedritxes/Rourets 2.350
Verge de Montserrat 2.600 2.125

2.800 2.350

1.900 1.575

2.900 2.625

48 | Market Report 2018-19 Spain and Andorra

Baix Llobregat

Just a few minutes away from Barcelona, there is an For 2019, prices are expected to experience increases
area with residential character and a very complete offer of more than 10% in the most central areas and a grea-
of amenities and services that is divided into north and ter number of purchases with more moderate price
south. Martorell, Corbera, Cervelló and El Papiol are increases in remote areas.
the areas with more demand from the north, while
Molins of Rei, Sant Boi, Viladecans and Cornellà are Property prices in Baix Llobregat
the urban areas that concentrate most of the population (Figures in euros / sqm)
of Baix Llobregat Sur.
Minimum Maximum Average
Detached houses or residential complexes with garden
areas are the most sought-after types of properties by Castellbisbal, 990 1.860 1.260
families with children and young couples who choose Martorell i Papiol 1.170 1.690 1.240
to live in this metropolitan area due to its excellent Vallirana, Cervelló 1.160 1.650 1.350
public transport network. Corbera, Pallejà 1.750 3.350 2.650
Molins de Rei
Most of the buyers are national, who make up 95% of Torrelles, Sant Viçenç 1.180 1.810 1.490
purchases, compared to 5% of expats who have chosen dels horts 1.660 2.360 2.060
to move to Spain, led by the Chinese and European Sant Boi, Viladecans 2.580 3.780 3.150
buyers. On the other hand, 100% of the customers in Cornellà
the regions of Anoia and Bages are national buyers.

Market Trends. The Spanish Residential Market | 49

Sant Just Rentals

This is the most expensive municipality in Baix Llobre- In 2017, rent prices stood at 15 euros / sqm, which
gat, where average prices in 2018 were between 3,400 means a stagnation over the previous year. The most in
and 3,900 euros / sqm, 7% more than the previous year. demand properties are 100 and 130 sqm flats and villas
of between 250 and 350 sqm. The multinational execu-
The type of homes most in demand are the townhouses tives are the main clients who look for rental proper-
and villas of between 250 sqm and 350 sqm in Sant Just ties in this area and in 70% of the cases, they are from
and San Joan Despí, areas where buyers who are mostly other countries.
families look for properties that are close to internatio-
nal schools. They also value comfort and the easy access Rental prices in Sant Just
to Barcelona and the airport. (Figures in euros / sqm)

Spaniards account for 70% of purchases compared to Sant Just Desvern Minimum Maximum Average
30% of foreigners in an area that has experienced an 12 18 15
increase in the number of buy-to-let homes.

Property prices in Sant Just
(Figures in euros / sqm)

Sant Just Desvern Minimum Maximum Average
Esplugues de Llobregat 3.200 4.500 3.700
Sant Joan Despí 2.900 4.400 3.500
Sant Feliu de Llobregat 2.700 3.000 2.800
2.500 2.900 2.700

50 | Market Report 2018-19 Spain and Andorra

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