With the progressive standardization of real estate prices, it is not surprising that real estate investment continues to recover and that most of the sales transactions in Barcelona comes from investors who decide to buy a house atraccted by the city and the high profitability of housing in Barcelona. The profitability of investing in a home and then rent it has increased in Spain to a rate of 5.7% from the 5.3% a year ago due to the high demand for rentals. Do you want to know more? Do you want to know if the investment in a house in Barcelona is really profitable?
There are different ways of calculating the profitability of a house, but perhaps one of the most used is the PER indicator (Price Earnings Ratio), which is obtained by comparing the selling price of housing with the rental price. The higher the ratio, the more expensive the home price if compared to the rent and vice versa. The PER is obtained by dividing the purchase price of a house for the total rental price you would get in a year. The resulting number would be the number of years it would take to recover the investment. Another reference used to calculate the profitability of a house is what in Spanish is called the gross return, that is, the percentage obtained by dividing the total gain in a year from the rent by the selling price of housing.
But, more than this indicators, when buying a house in Barcelona it is important to consider some factors that can determine the profitability of housing, as the area in which it is located, the type of housing you are buying, if it needs reforms… Choosing a good area with a revaluation prospect is also important for make your next investment successful. Let’s say that the ideal would be a house in a dynamic area, modern and accessible to transport services, shops, schools, parks area, such as the center of Barcelona. If the house is near the university areas –and the city center is–, the rental expectations will be much higher. Another factor to bear in mind is when you decide to invest in an old house. In that case, it is advisable to calculate the investment it will require to do the reform, if it’s has not been made yet.
In any case, if you are thinking of investing in a home in Barcelona and are not sure of the profitability of housing, our basic advice to be successful in the investment, especially if you’re not an expert in the sector, is to get the advice of a real estate agent with exclusive knowledge of the area in which you want to invest. This will avoid unnecessary risks and allow you to complete the real estate transaction smoothly and within the desired timeframe. Here’s when we talk about us. In Casc Antic we have more than 30 years of experience in real estate and more than 12 years in the old town of Barcelona, so we can guarantee that we are THE real estate company in this area of the city. In Casc Antic we provide you with advice from the beginning of the real estate investment process until the signing of the sales contract, plus we can help you with the renting. You can trust us because we have the necessary tools and we will put all our effort to select the best tenant to provide the best guarantees of payment and, above all, peace and security.