December 2016

When considering whether to buy or rent a Barcelona property one of the key issues is how expensive it is to actually live in Barcelona. It is one thing to buy a property and another thing to manage to keep up the maintenance costs and cost of living in Barcelona. The latest figure for Barcelona cost of living in December 2016 can be seen on a number of websites including Numbeo and Expatistan.

Cost of Living Figures Expatistan December 2016

These prices are based on figures entered by 272 different people living in Barcelona; updated December 2016.

Monthly rent for 85m² furnished apartment in a prestigious area €1,244

Monthly rent for 85m² furnished apartment in a regular area €885

Utilities one month (heating electricity, gas, garbage collection) for two people in a 85m² apartment €138

Monthly rent for a 45m² furnished apartment in a prestigious area €865

Monthly rent for a 45m² furnished apartment in a regular area €610

Utilities one month (heating electricity, gas, garbage collection) for one person in a 45m² apartment €141

Internet 8mbps for one month €34

The Catalan Generalitat (government) is looking into increasing the amount of tax tourists pay when staying in a Catalan vacation rental. Landlords collect this tax as part of the rental payment from the tenant and pass it on to the government. As the law stands all tourists staying in a Catalan rental have to pay a certain amount of tax for each day stay – this amount could soon be increased. At present the daily tourist rental tax in Barcelona is €0.65 but if the proposed changes are initiated the daily tourist rental tax will go up to €2.25. In other parts of Catalonia the increase will not be as dramatic as Barcelona’s proposed 250% increase. Instead the daily tourist rental tax in other parts of Catalonia will increase by €0.90.

Holiday rentals in Barcelona are always a hot topic in the Barcelona property market. There are several controversies over the issue of rental licenses, long term rentals, short term rentals and illegal rentals. Approximately 40% of vacation rentals in Barcelona are illegal; this means that they are not licensed by the municipality so they don’t pay tax on the profits earned and don’t have to abide by any legal requirements for rentals. However perhaps the biggest impact of illegal short term rentals in Barcelona on the property market in general is that the landlords can charge whatever they want, and so the price of holiday rentals in Barcelona is driven up. There is always a demand for short term rentals by tourists visiting Barcelona and the demand doesn’t not look like it will ease off any time soon. Tourism in Barcelona is booming. The problem is that the price of rentals in general gets pushed up due to illegal rentals and this drives the price of rentals up for local residents. A landlord with a property to rent would rather rent illegally to tourist and make more money than to rent to locals for long term and make less money. Vacation rentals are taking properties off the ordinary rental market. The financial returns on short term tourist rentals are 2-4 times higher than on regular long term rentals. For this reason home owners often prefer to break the law and rent to tourists illegally. A majority of the rentals are concentrated in Eixample and the Gothic Quarter. Many of the illegal rentals are in the Old Town. For every one legal rental in the Old Town there are four illegal tourist rentals.

Barcelona municipal officials are worried that the city is moving towards a crisis in the rental market, mainly because of the state of the holiday rental market. City Hall has been concerned with the rental market for quite some time; even before the election of Mayor Ada Colau, anti-eviction activist, the party used the rental issue as one of their campaign lines.

So what is the problem with BCN rents?

The problem with the rental market in Barcelona according to City Hall is the exaggerated high rents which seem to be continuing to rise. Barcelona rental prices are still low when compared to other European cities but the current trend resembles that which gripped the city during the rental price bubble. The average rent in Barcelona rose by 6.6% in 2015 reaching 727€ per meter squared. The increase in Barcelona rents in 2015 was the biggest increase in the country. City Hall would like to have more social housing to rent to low-income residents and they are encouraging landlords to do this by offering incentives to the owners of properties which are standing empty. The municipal government wants owners of properties which are standing empty to rent out their property in order to increase the number of social housing units available. However the municipality plans to offer incentives at the same time that they impose rent control regulations limiting the amount of rent landlords can charge. The enforcement of rent control is only planned for certain areas of the city.

A Summer Home in Barcelona

There are many tips for how to find and rent the ideal Barcelona property but here are just a few to get you started.

Know Your Rights – Before you even go looking for Barcelona apartments read up about the laws involved, extra expenses and the way of life in apartment buildings. Things you should be aware of include the rules about garbage disposal, communal areas in the building etc.

Get the Right Price – The price advertised might only be the price before municipal taxes, garbage collection fees, homeowner’s association fees, gas, electricity, water etc. A good idea is to ask to look at past bills or to talk to the people in the adjacent apartment.

Negotiate – It is acceptable to negotiate a lower price especially if you have done your homework ad know the going rate in that neighborhood. A good Barcelona real estate agent like Coldwell Banker can help you get the best price.

Sign for the Minimum Rental Period – Your rental contract will state how long the contract is binding for but you have the right to negotiate down to the minimum mandatory rental period which is 6 months. Most landlords will want to sign you up for 12 months. Remember that if you break the contract by leaving before the mandatory period is up you will be penalized and have to pay a month’s rent per each mandatory year that you have not completed. Not that even if the landlord tells you that you are obliged to pay until the end of the mandatory period even if you leave this is not the case.

Renting During the Barcelona Epiphany Celebrations January 2016

The Three Kings Day (Reyes Magos) is one of Barcelona’s most popular and interesting annual events. Together with other countries across the world Spain and Barcelona celebrate the arrival of the Three Kings. This celebration on 6th January means that in Barcelona Christmas continues into January! The Christmas lights, the atmosphere and parties are ongoing throughout the first week of January. The Three Wise Men from the Biblical story of the Nativity are the central figures in the celebration in Barcelona which includes a big parade (La Cabalgata de los Reyes Magos), parties, traditional foods and gift giving.

EasyJet to have Barcelona Base

In February 2016 EasyJet will open their Spanish headquarters in Barcelona creating 120 new jobs and new people looking for a home to rent. Landlords will have an influx of new clients waiting to rent their Barcelona properties.

Spanish Ski Season Rentals

With the start of the Spanish ski season there has been an influx of tourists will continue through the winter. Rental prices generally rise during the ski season in areas close to the mountains and popular ski resorts. Some tourists choose to base themselves in a Barcelona rental apartment and then make short trips into the mountains to ski.

Spanish Foreclosures Down

Foreclosures on unpaid mortgages is down by 12.4% as compared to 12 months ago. The National Statistics Institute published new statistics showing the 3rd quarter of 2015 to have fewer foreclosures on main residences of home owners.