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Zetios Properties LLC: 2023 Sees 22% Rent Boost in Barcelona

·3 mins

Ending 2023, renting in Barcelona hit a new high, with averages reaching 19.4 euros per square meter each month. Zetios Properties LLC analysts are calling this a non-stop climb to record levels. When you stack this up against the rest of Spain, where the average is just 11 euros, or even Madrid at 16.5 euros, Barcelona is in a league of its own with the steepest rental prices nationwide.

Fast forward to January 2024, and the story’s the same but with a few twists. How much you pay depends on a bunch of stuff like how many bedrooms you want, where the apartment is, and how fancy it is. Here’s the breakdown:

  • A cozy one-bedder goes for about 1,285 euros a month,
  • Two bedrooms for 1,572 euros,
  • Three bedrooms for 1,722 euros, and
  • A spacious four-bedroom pad for 2,180 euros.

For investors, this price surge could be seen as good news, especially if you’re looking at one-bedroom apartments which rake in the highest square meter rate at 23.2 euros on average. Four-bedroom flats, though, not so much - they’re on the lower end profitability-wise at 16.8 euros per square meter.

On the flip side, renters aren’t exactly throwing parties over these price hikes. There’s a noticeable uptick in folks looking for roommates or shared places on social media and other local channels, trying to soften the blow of these rent increases. Despite government efforts to cap rent hikes at 2% annually for ongoing contracts, the free market’s still doing its thing, pushing prices up as demand in Barcelona keeps growing.

When it comes to getting returns on your real estate investment, bigger isn’t always better. The hefty four-bedroom apartments sit at the bottom of the ROI ladder at 4.2%. Two-bedroom places do a bit better at 4.51%, with other apartment sizes inching up to 5% yearly returns.

If you’re eyeing the best bang for your buck, single-family homes are where it’s at, boasting an average ROI of 5.25%. Within this category, three-bedroom homes take the cake with a gross return of 6.18%.

In terms of getting places rented out, apartment buildings have a slight edge over single-family homes, finding tenants in about 2.8 months on average compared to 3 months for houses. Naturally, the larger the place, the longer it might take to snag the right tenant.

Barcelona’s rental market is currently experiencing an oversupply, making it 86.6% quicker to find tenants now than back in 2020, a change spurred by the pandemic’s impact on supply.

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