'Millenials' go for renting

There is a change of trend in the real estate market. If up until now Spain has always been a ‘buyer’ market, the barrage of ‘millenials’ – people were born from 1980 until 1995 – has tipped the balance in favour of renting. 

'Millenials are changing trends'

According to CBRE Spain, one of the leading consultant firms in Spain, sources,  68% of ‘millenials’ will prefer renting to acquire a place. As the report notes, the fact of being properties does not obsess them, although the majority pretends to get a mortgage in a long term.

Actually, according to the report, the main causes of this change of trend are:

• Economic situation: the average salary of a person younger than 29-year-old is less than a thousand Euros per month, which avoid them dealing with a mortgage with full guarantees

• Working scenario: apart from the amount of salary, another problem that people confront is a temporary contract. Actually, no more than 34% of 12.000 people requested in this report have a full-time contract.

• Change of mentality: taking into account that what matters more in the previous generation was being the owner of their place, preferences has changed. The ‘millenials’ put the interest of having the freedom of choosing where to live according to their cultural or leisure preferences.

Barcelona, fifth european city more attractive to invest in

According to the last Ernst & Young (E&Y) report, one of the biggest service providers in the world, Barcelona has reached in 2016 to the fifth most attractive city for foreign investors in Europe.

The survey, which values the ability to attract foreign investments in all economic sectors in the city, defines Barcelona as a privileged location, merely behind capitals such as London, Berlin, Paris or Amsterdam.   

Moreover, Catalonia attracted 2,78%  more in investment to reach 111 projects last year. Thus, the región monopolized more tan 40% of the investments made in Spain.

The real estate market in Barcelona was, eventually, one of the main investment sources. As Expansion published, more than 2.000 million euros were assigned to invest in these market, an increasing of 43% related to the year before.

Source: E&Y 

The number of British Investors interested in the real estate sector in Barcelona is highly increasing

It is becoming a tendency over the last months: British investors selling their UK properties and investing in Barcelona. This seems to be the way that many British families have taken in order to find a guaranteed financial profitability in the real estate sector.

The methodology is the following one: purchasing an entire building in poor condition and, through structural reform, selling the property or, even, putting it up for rent. Averagely, it is weird to find rentals for less than a thousand Euros. Moreover, in average a standard flat can be sold for almost half a millionEuros, depending on the area.  

Without going on a further detail, The Telegraph, one of the main newspapers in the UK, recently published a report which concludes that Barcelona was among the twelve best cities to invest in the real estate sector.

After Brexit

Expert in the field state that Brexit can be actually the cause of this phenomenon: “It is a matter of financial profitability. Nowadays, it is worthier to invest in Barcelona contrary to London” Furthermore, they highlight “There is an economical variant. The UK exit from European Union makes the British Pound Sterling disruptive. Thus, there are many British who prefer investing in Barcelona in order to keep their capital in Euros”. 

  As Mary Jane notes, manager of one of the best real estate intermediation companies in England, the growing rental demands and a increasing economical juncture in the Spanish market make investing inBarcelona worthy. Moreover, adds: “With a financial profitability up to 5%, investing in the real state field in Barcelona can be one of the most secured ways to increase and safe British money.

Source: La Vanguardia