The prices of purchase and sale of housing in Barcelona have experienced a 4 percent drop during the third quarter of the year, compared to the same period in 2020, while in the rest of the country they have increased by an average of 10 percent.
This decrease is related, in the opinion of the experts, to the intervention of the rental price in Catalonia after the entry into force in October of last year of Law 11/2020 on urgent measures on income containment, which limits the price of housing rental in 60 Catalan municipalities of more than 20,000 inhabitants.
“This limitation discourages savers from investing in rental housing due to the poor profitability they can get with it. In addition, owners who had their homes for rent choose to put them up for sale. All this reduces demand, increases supply and prices fall “, explain sources in the sector.
More homes available
The differences between Barcelona and the rest of the national territory regarding the number of homes available for sale are also obvious.
In the Catalan capital has increased the supply by more than 6 percent, while in the regions as a whole, homes for sale have fallen by 4 percent.
Madrid and Valencia are the cities that have seen the supply drop the most, almost 11 percent, followed by Seville, Malaga and Bilbao.
“One of the main causes of this increase could be the placing on the market for sale of many homes before allocating them to rent, which would also explain the fall in prices,” say sources from the real estate manager MVGM.
Stability after climbing
In the opinion of Elisa navarro, general director of MVGM in Spain, Covid-19 produced new needs and a latent demand for the purchase of a home in Spain, especially for single-family residences around large cities. After this peak, it is expected that both the volume of operations and prices will tend to stabilize in the coming months. “
However, the expert acknowledges that interest in a new construction product “will continue strong, with a demand attracted by new developments that give priority to open spaces and energy efficiency.”
Rental operations go up
Regarding the rental price, after the fall at the end of 2020 and the first quarter of 2021, of 4 percent in the total of Spain and between 9 and 14 percent in the most stressed markets, the demand has begun to put pressure in the third trimester.
The volume of rental operations has risen and, therefore, prices have stabilized, according to a market report published by MVGM.
“In recent months we have seen students looking for housing again and some professionals are beginning to consider going back to more central locations,” he points out. Elisa navarro.
He acknowledges that September has always been a good month to start rentals: “The market is showing that what is needed is sufficient supply, especially in medium-income and with a quality product.”
Rent intervention does not reduce rents
Regarding Barcelona and despite the price limitation measures, “there have been no reductions in income beyond those suffered by other markets that do not have this legislation,” they indicate from MVGM.
From pisos.com go further and in their monthly rental price report they point out that Barcelona was the capital with the highest rent in October, with 16.81 euros per square meter, ahead of San Sebastián, with 16.36 euros per square meter, and Madrid, with 14.99 euros. On the contrary, Zamora was the cheapest with 5.29 euros per square meter.
This increase in the price detected in Barcelona, despite the cap on rents, is due to the fact that after the entry into force of the law there has been a reduction in supply, argue from MVGM.
“Surely many owners have decided to withdraw their homes from rent, which is generating, ultimately, demand problems,” say sources from the real estate manager.