Original article written by Monika Rüsch
The economic consequences of the attacks of August 2017 are already lagging behind, since European cities that have suffered such tragedies in this field recover in an average period of 13 months. With regard to political instability, the deterrent effect that could be caused to potential ex-pat buyers is beginning to be quite blurred.
According to Jordi Gruart Rüsch, CEO of Monika Rüsch and economist with more than 20 years of experience in the real estate market, “the decline of buyers and foreign investors is temporary, since Barcelona is one of the most attractive cities in Europe to buy or rent housing, ahead of London, Paris or Rome. “
Currently, the average profile of the foreign home buyer in Barcelona is over 40 years old, middle-class, entrepreneur or manager, and with a high purchasing power. Monika Rüsch Real Estate finds, above all, many Europeans who have the idea of retiring in Barcelona. With the pension they will receive from their country, the city of Barcelona will be able to give them a higher quality of life.
Barcelona is so attractive to buyers and foreign investors because it hasn’t lost its cosmopolitan image. In addition, it is the star city of the Mediterranean area: it has a beach, a temperate climate and is 90 minutes away from the Pyrenees. “In spring you can sail in the morning and ski in the afternoon.”
It has lots to offer in terms of culture and gastronomy, and it is still one of the most valued cities for security. Its strategic location and airport connectivity are other aspects that make Barcelona one of the main tourist destinations in the world since it’s only 3 hours away from any European city, at most.
There are also four fundamental economic reasons to understand the interest of foreign investment in the real estate market of Barcelona if compared to the central areas of the main European capitals, according to an analysis prepared by Monika Rüsch.
- Buying a home in Barcelona is cheaper: The price per square metre in London is 14,611 euro (1,357 euro/sq ft), in Paris it’s 9,834 euro/m2 or 914 euro/sq ft, and in Berlin it stands at 4,825 euro/m2 or 448 euro/sq ft. In front of all of them, the price in Barcelona is 4,368 euro per square metre, which is 406 euro per square foot.
- Renting a home in Barcelona is cheaper: The average cost of renting a 3-room apartment in the city center is 1,419 euro per month. In London it is more than double at 3,380 euro; in Paris it exceeds 2,400 euro, and in Berlin the cost is similar, although above that of Barcelona, standing at 1,483 euro. Other cities like Oslo or Rome, which do not exceed the sales price in Barcelona, are more expensive in the field of rent. In the Norwegian capital it is close to 2,100 euro, and the Italian is 1,892 euro per month.
- The cost of living: According to the analysis by the real estate agency Monika Rüsch, if in Barcelona you need 1,000 euro per month to live comfortably, in Paris you need 1,395 euro and in Oslo 1,649 euro to do the same.
- Salary and pension differences: Regarding the salary difference, in numerical terms and transferred to real purchasing power, it is quite diminished, since the differential of the cost of life must be applied. Thus, if in Paris an average salary is 1,690 euro and in Barcelona it is 1,000 euro, the cost of living in the French capital is 39.5% higher than that of the Catalan one. This means that the difference in the real purchasing power is only 295 euro. In summary, the cost of living in Oslo is 110% above Barcelona, 91% in London, 69% in Paris, 48% in Berlin, and in Rome it is 5%.
With regard to European pensioners, they have a pension well above the Spanish pension, and the freedom to spend it wherever they want, which makes many of them choose to do it in Spanish cities, such as Barcelona.