Positive signs of recovery in the Catalan real estate market

Signos positivos de recuperación en el mercado inmobiliario catalán. Positive signs of recovery in the Catalan real estate market. Signes positifs de reprise sur le marché immobilier catalan. Segnali positivi di ripresa nel mercato immobiliare catalano. Sinais positivos de recuperação no mercado imobiliário catalão. Positive Anzeichen für eine Erholung auf dem katalanischen Immobilienmarkt.

Positive signs of recovery in the Catalan real estate market

The real estate sector in Catalonia has shown a notable evolution in 2024, marked by rising prices and diversification into new investment segments. Catalonia—and particularly Barcelona—continues to be one of the most attractive regions in Spain for real estate investment thanks to its strategic location, advanced infrastructure, and a market that, despite recent challenges, has demonstrated resilience and a remarkable capacity for recovery.

This year, the economic environment and interest in specific sectors such as hospitality, office spaces, and residential properties have driven up average prices, consolidating the region as a focal point for national and international investors.

Key indicators reflect signs of recovery in real estate investment across the region, with the capital city leading the way. According to CBRE data, Barcelona attracted €1.5 billion between January and September. Xavier Güell, Head of CBRE Barcelona, explains: “The hospitality sector has reached a record number of visitors in Barcelona, while the living segment remains dominated by a lack of supply to meet growing demand. In the office sector, the recovery in leasing activity is starting to translate, albeit timidly, into investment.”

Uneven performance across asset classes

The hospitality sector has emerged as the leading asset class, with €426 million invested, surpassing the living and office segments. Barcelona is the preferred destination for hotel investment, accounting for 25% of the national total. Key transactions include the sales of the Mandarin Oriental Hotel, Hotel Dolce Sitges, and Hotel Sofia Barcelona.

The living sector has become the second most attractive asset class, drawing €377 million in investments, a 29% increase compared to the previous year. The rise of student housing, which saw a volume of €276 million (more than double the total in 2023), has been a key driver of this growth. However, other segments like build-to-rent (BTR) and flex living have seen declines compared to 2023.

Following the national trend, the office sector is recovering and consolidating as the third-largest investment segment, reaching €357 million—a 44% increase compared to the previous year.

According to CBRE data, retail lags behind, recording €90 million in investment, surpassing the €76 million recorded for the whole of last year. Next is the industrial and logistics sector, with €80 million, falling significantly short of the €199 million seen during the same period in 2023.

Housing prices in Catalonia

Housing prices have long been a topic of social and political debate, particularly in cities like Barcelona. In Catalonia, the scarcity of supply in key areas and high rental demand are two factors significantly shaping the current market:

  • Sales: According to Idealista, as of October 2024, the average sale price for homes stood at €2,443/m², reflecting an annual growth of 4.9%. These figures remain below the 2007 peak (-8.8%) and the current national average (+9.6%). Barcelona leads with prices at €2,749/m² (+3.9% annually), followed by Girona at €2,432/m² (+7.8%), noted for its dynamism. Among more affordable areas, Lleida and Tarragona show significant annual increases (+8% and +7%, respectively).
  • Rentals: The average rental price in Catalonia reached €17.8 per square meter, hitting record highs with an annual increase of 10.8%. Driven by strong demand, Barcelona leads at €19.8/m² (+13.4% annually), while Girona (€13/m²) recorded quarterly declines (-5%). In more affordable regions, Lleida (€9.3/m²) and Tarragona (€9.4/m²) posted annual increases of 7.2% and 6.8%, respectively.

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