Care Homes, Micro Living and Purpose Built Student Accommodation are moving into the mainstream of real estate investment as yields and opportunities increase.
BARCELONA PROPERTY INVESTMENT FUNDAMENTALS
Regarded internationally as Spain’s most cosmopolitan city, Barcelona, along with Spain as a whole, started to show signs of a sustained recovery throughout 2015 and is now Europe’s number 1 region for job creation and foreign investment.
Increases in property values and rental yields were further supported by increases in Foreign Direct Investment (FDI) from some of the world’s largest funds, with Lone Star and Blackstone just two of the names making close to USD1b worth of acquisitions over the previous 24 months.
With house prices and rents trading at some 30% below their 2007 peak, there is optimism and expectation for a full recovery of this loss with additional growth complemented by major infrastructure projects (airport expansion is set to almost double capacity) and the regeneration of the former industrial area east of the city into the dynamic media, cultural, and start-up zone of 22@.
Rising GDP (2.5% growth predicted for 2016) and falling unemployment are further vindications of the city’s recovery and explain why nearly 20% of all FDI comes into Barcelona’s economic area.
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