Why Invest in Real Estate in Barcelona?

If you're considering the best way to invest your money, real estate investment is the perfect solution, and we’re here to explain why. It's increasingly common to hear about the benefits that can be obtained from this type of investment, especially when the returns on financial products are very low and market volatility is high.

In this article, we will provide the necessary answers and explain how to invest in real estate in Spain and all the benefits that can be achieved.

What Does Investing in Real Estate Mean?

This term refers to the purchase of properties with the aim of making a profit and achieving long-term returns. Benefits can be obtained through various practices:

• Renting Properties: After investing in a property, you can decide to rent it out and receive a monthly income. This means opting for monthly passive income, which is a perfect option as a supplementary income.

• Revalue Properties: When deciding to invest in real estate, it’s important to analyze all the characteristics and the situation of the property being considered for purchase. If it is in an area that is growing, it will tend to revalue and profit will be obtained from it in the long term.
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Why is Investing in Real Estate a Great Alternative?

Currently, there are many alternative investment options in the market, but it's important to note that the housing market has traditionally been one of the safest investments, especially if you avoid the times of real estate booms, carefully study the area where you plan to invest, and have the property appraised.

Investing in new developments generally offers much higher returns than financial products, especially in the long term and for medium portfolios, regardless of the investment objective. It is estimated that new contructed homes appreciate 20% more than second-hand ones. New housing has appreciated by an average of 5.6% per year since 1985, according to the Appraisal Society.

Buying new developments to invest allows for portfolio diversification. Diversification means dividing investment actions with the aim of security and profitability, which could involve dedicating another part of the portfolio to stocks, funds, government bonds, or even blockchain. Thus, the investor can obtain income at different frequencies: intraday operations, monthly, short, or long term.

How to Invest in New Properties in Barcelona?

Barcelona is a highly attractive market, with limited new developments but high demand for rental housing. It is one of the favorite places when thinking about future investments, offering a wide cultural and commercial range among the most complete in Europe.

How to carry out these types of investments will depend on the objectives and personal circumstances of each person. Therefore, we highlight the following steps:

• Real Estate Market Situation: Have a broad understanding of the current market situation. Currently, the stock of residential assets available for purchase is lower. It is estimated that to cover the structural demand of the market, between 120,000 and 150,000 new units per year will be needed until 2030, according to the Spanish Association of Real Estate Developers (APCE).

• Set Objectives and Budget Limits: Acting with sensibility and analysis will allow for a greater profit margin and avoid uncontrollable losses. The real estate market is in a state of appreciation that can be leveraged by setting budgets.

• Clear Focus: After setting clear objectives, especially if they are long-term, it is important to have a clear focus on what will be done with the property after purchase. New developments usually meet new housing requirements: pool, gym, terraces...

4 Advantages of Investing in Real Estate in Catalonia

Here are the advantages to consider when starting your transactions:

1. Profitability: Real estate investment allows you to choose the type of return you want. Seasonal or full-time? You can opt for vacation rentals, long-term rentals, or even combine a second home with vacation rentals to maximize the property.

2. High Demand for Rental Housing: In the past year, new rental contracts in Barcelona have dropped by 17%, and the supply of rental apartments in the city is at historic lows. This is why investing in new developments for rental can lead to great profitability.

3. Tax Benefits: Often, investing in housing can involve certain tax benefits. For example, if you decide to buy and keep the property as your main residence, you can deduct 60% of the total rents obtained.

4. Sustainability: According to the report “Sustainability in Housing Demand in Spain,” 95.3% of Spaniards who want to move, whether renting or buying, consider it important to live in a sustainable home.

LuxHabitat's Developments are the Perfect Real Estate Investment Option

At LuxHabitat, we are clear about the real estate market situation, what future homeowners expect, and how to focus each of our developments to meet the objectives of investors in Spain.