Catalonia is an obvious and attractive destination to invest in the holiday lettings market. Holiday rental homes are one of the most profitable investment options in Spain thanks to its burgeoning tourist industry. New build properties are an ideal asset for small investors looking to generate a good return on investment. At Kakdoma BCN we can offer you a personal step-by-step assistance in the new build properties selection and purchase and we also manage rentals for you at new developments in Barcelona:
New build properties in Barcelona
We are pleased to present you the New Build Properties in Barcelona City promoted by the largest real estate agencies:
- Engel and Voelkers,
- Lucas Fox,
- Cornex Capital,
- Barcelona Sotheby’s
- and others.
You can also find more new developments in Barcelona in the most popular real estate platforms, like:
- Habitaclia,
- Idealista.com
- Fotocasa.
Off-plan purchase can gain you up to 10%
“There is still strong demand for centrally located ‘lock and leave’ properties, particularly from foreign buyers who tend to prefer ‘ready to move into’ properties that offer good short-term rental yield and long-term capital appreciation. However demand continues to outweigh supply. The areas that have seen most growth are the central residential district of Eixample, Barcelona Old Town and Diagonal Mar on the Barcelona beachfront. We are now also beginning to see more development on the outskirts of the city such as Badalona, a vibrant seaside town which has recently undergone a major regeneration. Areas such as Diagonal Mar have seen significant capital appreciation in the last 10 years or so and we expect other outlying areas such as Badalona and the Maresme Coast to see the same kind of growth over the next few years.
If buyers are looking for a lower risk investment, we suggest they start their search in the central district of Eixample. This upmarket residential area has consistently seen steady growth and suffered less during the crisis.
Developments on the outskirts of the city such as Badalona Beach may be regarded as a more risky option as the area has less track record for new homes sales, but we believe these up-and-coming areas have huge potential for capital growth thanks to its proximity to Barcelona and newly regenerated beachfront. If buyers choose to purchase off-plan at the very early stages of a development, they can often look to gain up to 10% on their asset solely during the construction phase.” (Alex Vaughan, Lucas Fox)
Opportunities for investors
In the last few years there has been an increasing number of investors looking for opportunities in Spain from outside the UK and EU. Far East investment is beginning to increase as more people visit Spain as tourists and begin to appreciate the lifestyle, culture and high standard of living.
Golden Visa
Barcelona accounts for almost half of the Spanish residence permits issued, so here the programme’s influence is more significant. Recent data suggests that between 2013 and 2016 almost 42,000 transactions involving residential property were closed in Barcelona, and over 6,000 of them were registered to international investors, accounting for about 15% of foreign buyers here.
Under the Spanish ‘Golden Visa’ residency scheme non-EU nationals can get permanent residency including Schengen-area travel in return for certain types of investment, including €500,000 (finance free) or more in real estate. Figures suggest that Barcelona attracts around 50% of Golden Visa investors in Spain, mainly Chinese. Buying a property in Barcelona not only opens the door to a residence permit, it also allows Chinese parents to give their children a good education thanks to the prestigious international schools in the city.
The first half a million Euros invested has to be mortgage free but anything over that amount can be financed. In the last year we have seen growing interest from Golden Visa applicants as the Spanish economy grows from strength to strength, interest rates continue to stay low, banks are lending again and property prices are still below the peak of 2008 in many areas.
Brexit
The initial aftershock of Brexit was felt in the lower end of the Spanish residential property market in areas such as the Costa del Sol and the Costa Blanca, which have traditionally attracted high numbers of UK buyers. The ripple effect is being felt less now in these resort areas and British buyers are almost back to the levels they were pre June 2016.
In the main cities – mainly Madrid and Barcelona – Brexit has actually had a positive effect as some international investors who were putting their money into Bricks and Mortar in London look for alternative locations in which to invest. The London market has become relatively deflated post Brexit but the Spanish property recovery is now well underway. The Spanish Land Registrars Association recently showed that prices increased by 9.39% in the first quarter of 2018 while the official Government index shows valuations up 2.7%. The data from the registrars also indicates that prices have risen 26% since they bottomed out at the end of 2014, but are still down 18% compared to the peak in 2007, meaning there are still excellent investment opportunities throughout Spain.
One-stop solutions
At Kakdoma BCN we offer one-stop solutions for investors in Barcelona. We specialise in Relocation of British and non-EU investors and families looking to make a permanent move to Barcelona. At Kakdoma BCN we are ready to meet the growing demand for the luxury homes management from overseas investors. We can offer a tailor-made solutions for every property owner in Barcelona.
Tips for Buying New Build Properties in Spain
Sara Janion, Manager Director of Worldwide Lawyers, offers her advice on the dos and don’ts of buying a Spanish new build property or off-plan property in Spain.
The appeal of buying a new build property in Spain is understandable. New build resorts in Spain often come with a ready-made community, great communal facilities and, being brand-new, require minimal maintenance. What’s more, off-plan properties in Spain can offer great value for money for investors, especially when buying more than one property.
However, whether buying new or old you should always do your research and exercise caution to ensure that your interests are protected when buying a property in Spain.
DO instruct an independent lawyer
Developers and estate agents selling new build properties in Spain often suggest that the legal fees for the purchase can be ‘packaged’ into the property price. However, it’s crucial that you instruct an independent Spanish lawyer, i.e. who is not connected to the estate agent or developer/development.
You need a Personal Assistant or lawyer to act solely in your interest and be completely objective. When using a developer or estate agent’s recommended lawyer there is always a conflict of interest. If there are any potential issues with the property you want to make sure that they are brought to your attention. Likewise, off-plan purchase contracts should protect your interests, a good independent lawyer will make sure of this.
DON’T go ahead with a purchase unless the property in bank guaranteed
These days off-plan property purchases in Spain are much safer, following the aftermath of the property crash in 2008, which saw many people’s dreams crushed as developers and builders went bankrupt before completing developments. No one wants to be one of those unlucky few though, so it’s crucial that you ensure any off-plan property purchase in bank guaranteed to ensure that your interests are protected.
DON’T be surprised if there are delays
Let’s be honest, builders rarely run on schedule! It’s not necessarily their fault, there are often unforeseen circumstances that can put the schedule back by weeks, months or even years in some cases, so be prepared for a few setbacks. Nevertheless, your Spanish lawyer can ensure that projected completion dates are recorded in your purchase contract to offer a safeguard should the delays become unacceptable.
DO check whether there are any warranties
Similar to the NHBC Buildmark warranty in the UK, new build properties in Spain are covered by Seguro Decenal, an insurance which covers the property owners against serious structural issues for 10 years following completion. If you need to make a claim on this insurance, you’ll need the correct documentation from the developer with regards to the Seguro Decenal, so make sure this is provided by the developer on completion.
Free guide to buying a property in Spain
It’s worth checking the reputation of the developer and builder, if possible, as some are better than others when it comes to their obligations with regards to ‘snagging’ and correcting other issues, such as a leaking roof, which aren’t deemed serious enough to be covered by the Seguro Decenal.
DO ask about services charges/communal fees
Most properties that are part of a resort with shared facilities, such as a swimming pool, gym etc. are subject to service charges. Find out what these fees are and what they cover before signing any reservation contracts as they can vary significantly. You should also check whether the service charge is automatically increased annually or if it is capped for a certain period, as well as how frequently the fees are charged. Your estate agent should be able to advise you how the service charge compares to other properties in the area.
DON’T assume you can rent it out long-term/short-term without checking first
In recent years Spain has clamped down on holiday rentals, especially in tourist hotspots including Barcelona, the Canary Island and the Balearics. It’s always best to be upfront if you intend to rent the property out, to ensure it’s legal to do so. You may need a rental license and proof that the property meets rental criteria. The rules vary from region to region and are dependent on the type of property, so take legal advice on this before signing a reservation contract or paying reservation fees.
DON’T buy/pay a deposit without visiting the location
It’s so important to see the development in situ and get a feel for the place in person. The atmosphere can drastically change depending on the time of year. Some parts of Spain can be a hub of activity during the busy seasons but when the tourists have disappeared, they can be very quiet.
A luxury apartment might not be so appealing if you realise it’s in the middle of nowhere or that your supposed peaceful retreat is situated right next to a busy road. So, whether you’re after a tranquil location or somewhere lively, it’s crucial that you find out what the area is like all year round.
You can read more about the buying process in Spain by taking a look at Kakdoma BCN.
Source: A place in the Sun, Lucasfox.com
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