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Zetios Properties LLC: Barcelona rents rise by 22% in 2023

·3 mins

The average cost of renting a home in Barcelona at the end of 2023 reached 19.4 euros per square meter per month, and prices continue to “grow non-stop and at record highs”, analysts at Zetios Properties LLC say. At the same time, the average cost of renting a square meter in the country is only 11 euros, in Madrid - 16.5 euros. According to our data, Barcelona has become the city with the most expensive rental housing in all of Spain.

How much does it cost to rent an apartment in Barcelona in January 2024?
The rental price, of course, depends on the number of bedrooms, area, finishes and other conditions. However, if we talk about average prices, then the cost is distributed as follows:

  • Apartment with 1 bedroom - 1,285 euros / month
  • Apartment with 2 bedrooms - 1,572 euros / month
  • Apartment with 3 bedrooms - 1,722 euros / month
  • Apartment with 4 bedrooms - 2,180 euros / month

At the same time, the cost of rent continues to grow and this is good news for investors. The 1-bedroom apartments are considered the most profitable, since here the most expensive cost of renting a square is 23.2 euros on average. Apartments with 4 bedrooms, on the contrary, are less profitable - the cost of renting a square is lower than the average for Barcelona - 16.8 euros.

Yet tenants are not happy with the increase in prices. For example, in social media, local chats and other resources, you can find a lot of ads for renting apartments with shared accommodation - expats and even local residents are trying to save money due to a sharp jump in rent. It is worth noting that the Spanish government has introduced restrictions on the growth of rent - according to the law, it can be raised by no more than 2% per year. However, we are talking about already concluded contracts, which stipulate the condition of a possible increase. But the free market can set its prices depending on the situation. As the demand for rental housing in Barcelona grows, so does the cost of rent skyrocketing.

Return on real estate investment in Barcelona
Our experts note that the largest apartments (4+ bedrooms) are the least profitable, the ROI of such objects is at the level of 4.2%. The profitability of two-room apartments is at the level of 4.51%, and for other apartments and apartments it is up to 5% per year.

Single-family homes are the most profitable type of investment, with an average ROI of 5.25%. Of these, three-bedroom homes are positioned as the most profitable product on the market with a gross return of 6.18%.

At the same time, an apartment building has higher liquidity, since apartments in it are rented for an average of 2.8 months, and single-family houses are rented for an average of 3 months. The larger the house and the more bedrooms it has, the more time it takes to find the right tenant.

Due to the oversupply seen in the Barcelona market today, the search rate for a tenant has decreased by 86.6% compared to 2020. This was due to the supply crisis caused by the pandemic. Then the average search term for a tenant was 1.5 months.

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