(I) CONDO-HOTEL: Real estate ownership + hotel services!!!

19 September, 2011 No Comments

We are talking about a hotel in which every room belongs to a different owner, but the entire hotel establishment is managed jointly …. also referred to as the perfect second home.

Its operation is similar to the one of a normal hotel with the difference that the rooms are owned by an investor. The investor will be able to enjoy the room for a certain period of time, and the rest of the time it will be exploited by the hotel managing company, producing a nice return to the investor.
This kind of business surged in the 80′s in South Florida, which then spread to other states as New York, Los Angeles, Las Vegas, or golf resorts and mountain resorts such as Aspen in Colorado. After a while, it became a very common figure in other countries such as Panama, Canada, Philippines, and many more.

Many second home owners consider the possibility to rent their home for as long as they don’t use it to take some profits out of it. However, in many cases they are not successful because it is not always easy to find tenants.

In this particular case, the “condo-hotel” investor owns a piece of real estate within a large hotel resort ans is aware that will be able to enjoy it one month out of a year. The remaining 11 months he will not have to pay expenses that a second home usually carries, and will be getting a return for his investment from the management company.

It is obvious that the management company, in order to maximize profitability, will put a restrain on specific dates in which the owner will not be able to use the home, for example in some countries, the months of July and August which are the busiest of the year. This type of investment would be more convenient for people who have flexible schedules, and are able to pick their vacation days with no restrains.

“Condo-hotels” are usually located in the best destinations around the globe. C-h are high quality places where every little detail is taken into account, and its clientele is in the upper class. All this leads to a high turnover in room rentals. Thus, when investing in this specific product, it is recommended to do it on a hotel whose management company is prestigious and has good reputation.

It is a relatively new system in Spain, and it seems that in the urban aspect there is legal uncertainty. But in legal terms, the condo-hotel may be regulated within some of these figures: 1 – The hotel’s horizontal division, which would be the most common way to do it. In this case the owner would have the property and a registration notice proving them owners of a room. 2 – It might also be considered as a group of assets, which would mean to buy a % of the entire property without specifically dividing the parts (not the common way). 3 – A corporation, that is to acquire part of the hotel by the purchase of shares. In this corporation, the ownership of the hotel belongs to a company whose investors participate as shareholders.

Regarding the community services that the hotel offers (pools, spa, gym, golf, etc..), they will be available to the owner during his stay, with the possibility to pay them at a discount (depending on the agreement established with the management company).

The managing company is responsible for the rent, as well as for maintenance and repairs of both the property and the common areas. The portion of the income derived from the rental is allocated to finance, if any, repairs or possible damages in the property.

In a later post, I will present you with a list about the strengths and weaknesses of this type of investment, which differ from both timeshare or fractional properties.

(II) Real Estate Investment in Punta del Este – URUGUAY

15 September, 2011 No Comments

Uruguay is a tourist destination where people who went once, usually like to repeat. This makes a positive effect on the return of any real estate investment, especially of vacation properties.

Uruguay finds itself in a full expansion that has allowed, after a period of growth, to achieve economic stability. It focuses on low public spending policies, competitive tax rates, in addition to an improved tax collection, and a relatively open trade regime.

Besides the economic stability and the country’s strong legal system, the Uruguayan government has an open attitude towards foreign direct investment (FDI), by eliminating unnecessary paperwork such as previous registrations and authorizations, as well as restrictions that discriminate against local or foreign investors. This allows foreign capital to have no restrains in case they desired to participate in local companies. The legal and mercantile procedures to establish a corporation in Uruguay are simple, and the initial capital invested can benefit from tax exemptions, or VAT.

Punta del Este is emerging as one of the best business opportunities in the country. It is the most attractive real estate investment due to its location, like a “VIP real estate destination”. Despite Montevideo, Punta del Este has registered the highest number of transactions of second hand/vacation homes, whose main buyers come from Brazil, Argentina, United States or Europe, with an increasing number of Uruguayans as  their society gains purchasing power.

This part of the country offers virgin landscapes, combines nature and a very well designed modern city, with  its commercial and residential neighborhoods while respecting the area’s coastline natural beauty, which enables you to enjoy countless “first line views to the beach”, adding value to the property. Usually, properties acquired in Punta del Este are occupied most of the time, fostered by a climate that has an average temperature of 30 º C in January, which compared to Barcelona or Madrid, is “a bit warmer”.

As a relevant fact, I would like to highlight some investment figures that attempt to develop different markets with less conventional structures. They base their functioning in ways that are more secure in contrast to the potential risks, promoting a more efficient development:

* Building Trust at cost, which would be associated to the market of residential housing.

* Condo Hotels, associated to the development of second homes in tourist areas and for selling purposes.

In a future post I will make a deep analysis of these figures that are increasingly becoming more powerful in this housing market.

Some advice when purchasing in the foreign market so that YOU DON´T…

6 September, 2011 No Comments

1 – Overestimate the budget itself:
It is dangerous to rely solely on the income received from renting the property to cover  mortgage payments. One must always have reserve funds.

2 –Sign a contract without the appropriate legal counseling such as an attorney:
It is crucial to have a lawyer check any document that you need to sign. When you purchase a property off the architectural plans, or when you make a trip to the region to check out the promotions, there may be some pressure to sign documents, or make payments. Thus, you must count with an efficient lawyer that is available either by email or fax at any time.

3-Rely on something, unless otherwise specified in the contract:
In most cases the developer selling the property is the one that will be responsible to rent and manage it during the months the owner does not use it, which will be specified in advance. The concepts that should be clearly identified are: the months available for rent, total amount charged for rent, and how will be divided between the owner and the agency. The guarantees for rentals, in particular, are always based on verbal promises, but often are not specified in the contract clauses. Make sure that the contract has no cracks in this matter.

4-Ignore additional costs: 
 In some countries, fees and taxes can add another 15% of the purchase price. It must me added to the total.

5-Ignore the effect of currency fluctuations: 
 The value of Euro € may vary, increasing or decreasing based on the fluctuation with repect to other currencies like the US dollar $.

 6-Ignore the local tax system:
You must be aware of the tax obligations instead of assuming a similar system as in our country.

7 -Use a lawyer who works or has a close relationship with the promoter:
To avoid conflict of interests between the promoter or agent to whom you are buying the property.

8- Purchase with your heart instead of using your head: Most purchases abroad work quite well … …… But it may happen that the property of your dreams becomes a nightmare if you have not done the appropriate market research before deciding to purchase the property.

(5) IBI, PROPERTY TAX : shopping around the world

4 September, 2011 No Comments

Real estate tax, impôt foncier, Grundsteuer, stondbeleisting, owners fiscale, Tax on properties, EMLAK vergisi ………. Taxes are paid one way or the other in the majority of countries

Taxes are inevitable. There are different property taxes:

1 – Taxes from the purchase of a property; they are in force in most countries and can be referred to as stamp duty, TRANSFER TAX, TAX PURCHASE, but in the end is the same tax that the respective governments collect. Even though the amount may vary from country to country, some countries only charge a fee on the resale and not on new construction properties. Usually VAT is applied on new construction buildings.

2 – Taxes regarding the ownership of a property: In Spain we refer to as the IBI, based on the assessed value of the property. Every property owner must pay it no matter what his/her status is. Since we are talking about a municipal tax the amount usually varies depending on the size of the property and its location. This tax is paid annually and the amount is automatically charged into the owner’s bank account. In the UK would be similar to Council Tax.

3 -. Taxes levied on the profits from the sale of the property: In many countries this tax is applied to the gain obtained from the property’s purchase price and its sale price (note; some countries allow the deduction of expenses such as maintenance, repairs or improvements made to the property (which must be justified with receipts and vouchers). Also referred to as Capital Gains Tax (CGT), is applied at the time of sale. In some countries the amount due is paid gradually ie. Turkey. In other countries such as France, this tax is paid off in fifteen years. Outside the US, there are different ways to view this tax, considering if they are residents or nonresidents in the country. Many investors are  mistaken because they beleive that if the tax is not imposed in the country where the property is being sold, they do not have to pay anything …….Wrong! You are exempt only if you are tax resident in the country. In the case of being resident, for example in the UK, a tax will be charged on any profit earned around the world. In general, the seller of any property will pay CGT or any similar tax to the country where the property is located because a tax applies for any sale.

Regarding double taxation: be careful not to pay taxes twice (the country where the property is located and the country that you belong). Countries often sign double taxation treaties to avoid its citizens to pay taxes twice for the sale of a single good. In these cases, the amount paid in the foreign country should not be re-paid in the country of residence.

It is almost “mandatory” to seek advice from a tax lawyer or a specialist in the country where the good is bought, so that he helps, within the framework of the law, to minimize the amount to pay in each case.

(4) Real estate from architectural plans: shopping around the world

3 September, 2011 No Comments

When you buy off plan, you are buying a project that does not exist, but the amount of money paid is real, and DOES exist.

… Please note when buying a property from architectural plans:

1. Specify the total price and payment method. This price in theory should not vary unless renovations that could not be prevented arise at the time of the contract . Buyers though, must agree whether they accept these increases.
2. Identification of the architect, builder, and the seller

3. Specify statutes and rules of building to all homeowners. Determine the community’s contracts and supplies.

4. The construction company will deliver a general plan, detailing the location of the house, specifying  electrical installation, gas heating, fire safety measures, etc..

5. Data from the property bureau, authorizations, permits, licenses…

6. Specify Delivery date

7. The buyer’s right to choose the notary’s office.

8. Document describing the property, useful space, the building in which it is located, common areas, ancillary services.

When measuring risks, the fact that both parties agreed on a delivery date, and a compensation in case of delay, are good guarantees to the buyer, who could then claim for damages.

1 – Market fluctuations make it difficult to predict whether the selling price reflects the actual market value at the time the work is finished (could easily be 24 months).

2 – Given the possibility that the developer ends up in bankruptcy, insolvency, or starting a bankruptcy, you must be aware if there are any bank guarantees to ensure all payments made in case that the developer does not finish the work. In this case the buyer (you), who becomes a creditor, has one month to gather all the documents and present them to the bankruptcy administration. Emphasizing that the property was not delivered, or the construction work did not begin on the agreed date, the buyer may terminate the contract, and execute the guarantee that ensures the amounts paid in advance. However, if you do not have this guarantee, or insurance to cover these payments, you must wait for an arrangement with other creditors or liquidation of the company.

A company in bankruptcy should continue the work under the orders of other supervisors appointed by the judge. Perhaps due to liquidity problems, another company may proceed to finish the works, in which  they may suggest new conditions of delivery or payment for compensation.

When the delay has been confirmed and the contract terminated, you must go to the bank and present the original guarantee (it’s important that the deadline has not expired). Although the promoter is in bankruptcy, the bank must pay the guarantee. If the bank refuses to pay, you can also initiate a complaint against the bank.

When the buyer wants to go on with the purchase, he must keep meeting the payments. However, one must realize that it would be wiser, as long as you have not disbursed more than 20% of the total price, to stop paying. The amounts paid to date will be lost, but at the same time you avoid a long lasting process and losing more money. Today, with the current discounts in real estate it is easy to find a similar product, and perhaps with better economic conditions.

Reasons for which the buyer may not want or be able to continue with the purchase:

* When the seller has breached the contract, ie there is a delay in delivery, you can seek the termination of the contract or to recover the money advanced + the appropriate compensation.

* If you have a guarantee from the seller, go to the bank. This delivery delay, which is considered a partial default, is not enough reason to terminate the contract and the buyer must pay the payments; only when it goes over the time prescribed by law, will be considered total breach of contract, and thus subject to return the amounts paid + the interest.

* If the seller has not breached the contract, nor there was a guarantee, and the buyer wants to terminate it unilaterally, he must negotiate with the seller the cancellation of the purchase, claiming to the seller the money paid to date at the court. In the event that we are talking about a contract that cannot be canceled, the new owner must continue to pay the payments on time. However, if there was a deposit, the contract can be canceled losing the amount deposited in the first place.

Regardless of which country you are going to buy a property off plan and of its legislation, it is important to keep in mind these brief remarks before signing a purchase of this type. Given the nature of the country’s real estate law, which may differ from ours, it is highly recommended to always count with a lawyer, no matter who the promoter is.

(3) Real estate from architectural plans: shopping around the world

2 September, 2011 No Comments

Risks and advantages of a fairly common way of purchase.

To purchase a property out of the arquitecture plans is common in countries like Spain, which have had a large market of new construction, as well as in other developing countries such as Greece, Crete, Panama, Brazil, Turkey, Egypt or Morocco .

Why do people choose this purchase method? On one hand involves savings, which in some cases can reach up to 30% of the final price once the property is completed. It also allows the new owner to make changes in materials, and the distribution both inside and outside, example: increase the size of a room, change a terrace, or increase the size of the pool (in contrast, in a finished house, it is more difficult and expensive).

However, the buyer of a property out of the architectural plans bears many risks. In the first place,  he has to make a deposit upon signature of commitment of the purchase contract, then the promoter requires him to make a number of advanced payments before they finish building the house… ie when the house structure is complete or when the roof is finished …. the process keeps repeating itself until the house is completed and the final payment made. This process may take 18 to 24 months or sometimes even more.

In some cases, investors buy the property off plans and sell it when it’s finished at a higher price. In other cases, they buy the property off plans and sell it before it’s finished, thus assuming only the deposit and early payments and avoiding the last ones. This strategy was very profitable when the market was favorable, with profits of nearly 20%.

In the current market, where sales are stuck, the risk is much higher and the appreciation of the capital invested is almost inexistent. Since it’s difficult to sell an unfinished property the buyer will have to make all remaining payments. Under these conditions, we must have the money to cover all the payments and bear in mind that in two years, mortgages are subject to change.

The property’s delivery date must be clearly stated in the contract (month and year), specifying whether the possibility of extension exists. To treat possible delays in the delivery of the property, parties may have previously agreed to a penalty clause that covers compensation for any costs (moving furniture, rent …) according to the days or months of delay.

All of these details should also be specified in the pre-arrangement that is signed at the time of the deposit, with the house details (square meters, location, quality specifications and equipment), and the price and interests agreed on.

Even if delivery is made under the agreed time, we must verify in which conditions was delivered . The home must be completed with the “end of construction” certificate signed by the architect who led the work, and the adequate licenses and permits:  first occupation (for private housing), and final certification (in public housing). If they are not in order, utilities companies will not accept it and you will not have water, electricity… to live in a house with no license could lead to a penalty from the public administration. If a delay does occur, a first request is sent to the developer to deliver it (ie. Bur fax with receipt requested). If after two months the property has not been delivered, another similar requirement prior to a lawsuit. After 6 months, then you can start to process a legal claim (it is recommended to keep all costs that this delay has caused to the buyer, to attach them with the claim).

Buying a property off plans has not been recommended for a couple of years now. During the housing bubble, if the developer was a good professional, the buyer got his home in a timely fashion and at the agreed price. But in many cases, complications arise and the buyer can lose the house and the amounts paid in advance. There are buyers who find themselves in this situation because at the time they agreed to sell this way. In my next post I will explain the process to be followed in our country when problems with the purchase of a property arise.

2) FRACTIONAL PROPERTY: Shopping around the world

1 September, 2011 1 Comment

That is, to buy only part of the property, which is different than timeshare or right of use.

Fractional ownership allows the buyer to purchase only a portion, instead of owning the total property. This method was originally used in the purchase of yachts and planes, but for the last two decades has been applied also in the American real estate market, and also in areas of Europe that tend to have a year round occupancy, i.e. Golf Resorts Algarve (Portugal).

Buying a share of the property, usually between 1 / 4 (to use 13 weeks per year) and 1 / 12 (one month of use), carries a small down payment, which instead of buying an entire property, allows you to buy small fractions of different properties in different locations. Another advantage would be to buy a portion of a much larger house for the price a little one.

Keep in mind that if you buy a quarter of the property, the cost will be slightly more than one fourth of the property’s market price. This increase is to bear with administration costs, which involve the management of the estate by a company that will have the property always ready whenever there is a change in use (repair, maintenance, cleaning, gardening, etc) . These are monthly expenses, and therefore we must take into consideration this additional cost when choosing this type of purchase..

The idea of fractional property shall not be confused with the figure of timeshare property that was very popular in the 80′s. The differences are:

1. Buying a fractional property is similar to buying an entire property, the owner’s name appears in the documents that guarantee the ownership of a part of that property. It is called ” common tenancy” with other owners. The owner may sell, rent or take a mortgage on that part of the property during the time he has allotted for its use. On the other hand, timeshare property only sells time of use (right of use), instead of selling a property title. The value of this “time” will usually depreciate over time. Instead, fractional ownership on a property, if the market improves, will be appreciated as any other owned real estate.
2. With timeshare, if the managing company is dissolved, the person who bought a right of use, may be at risk. This does not happen in the purchase of a fractional property because shared ownership is independent of the management company.
3. In many type of timeshare, the time is bought in hotel rooms or apartments which may vary each time, because investors are only owners of the time. In fractional ownership, you get part of that home, it will not change.

To sell fractional ownership: If there is no special provision in the contract, the property can be sold at any time and recover the portion of the initial investment (or more if the property has appreciated over time), but usually there is some sort of extra charge. Depending on the terms of the contract, some companies may offer to repurchase the fraction, and others act as brokers and charge a fee in order to sell it privately.

Some fraction contracts are signed for a certain period of time, and after this period all the owners may sell the property, to be divided equally among all of them. It is also possible to start another period with the same conditions, or if a co-owner wants to buy the entire property, he will have preference over any external investor.

Sometimes doubts arise about the purchase of a property…  Why should I buy it if I will not get the most out of it? Here are the advantages of fractional purchase:

* Instead of assuming the total costs of owning a home, divide the cost of furnishing, maintenance, insurance, repairs, security, tax, among all co-owners ..
* The company that manages the property will take care of the maintenance problems, if any, that entails having a second residence ….. when you arrive everything is in perfect conditions ….. when you leave you don’t have to worry either, because the house will be in perfect condition.
* You do not need a large amount of capital invested in it, and you can allocate the rest in other investments.
* An empty house always carries a higher risk, but in this case will be inhabited most of the time
* Owners of second residences, often use as much of the 4-12 weeks per year. Fractional ownership makes the purchase price match with the use that is given to a holiday home.

(II) HOMES in China

27 August, 2011 No Comments

This post is based on the conclusions of a Spanish entrepreneur who moved with his family to China, and he did his own market research to find a home there.

In China, homes are concessions of 70 years (apparently, they are considering to extend the concession to 90 years). If an investor purchases a brand new home, the concession is for the whole period.

In regards to the Real Estate second hand market;

* If the home is bought in the second hand market, the new owner should subtract the years that the home was previously inhabited to the total period of the concession.
* An interesting fact is that there is small market for rehabilitation of buildings or homes. Chinese are not used to perform regular maintenance to a home (ie; to give maintenance to the building’s garage or facades, or to paint the stairs and the house itself). This leads to visible impairments in a short period of time and therefore the buyer chooses to buy a new apartment or house. (This might be a possible gap in the market that should be carefully studied and be a great business opportunity).
* It could be inferred that second-hand homes in China are not as attractive as new homes. The vast majority tend to search for first hand properties due to the large existing supply across the country. We are talking about an immense market of new homes. However, in the country’s main cities, especially in the city centre (first ring) where the housing market has settled, supply of homes in the second hand market does exist.

The loans offered for the purchase of a home, can amount to 50% of the total investment. NO matter if home prices are fixed, one should always negotiate with the seller, in addition to a 2% discount for early payment. The realtor’s commission is paid by both parties.

Since China is a developing country of considerable size, large cities such as Beijing or Shanghai are not the only ones experiencing this kind of growth, existing cities in the suburbs referred to as “third” or “fourth ring” also follow this trend. These peripheral areas are usually well connected with either high speed trains or a growing subway network.

High speed train networks communicate in a quickly manner people’s homes with the city centers and workplaces. As well as the subway, which makes up the price a house along a station and with good communication (as would happen here).

There are ghost towns, mostly bought by investors who want to own. Taking into account that his mentality is geared toward work all day, have few expenses, and thus, saving. This allowed them to pay a flat to a son (usually one child per family), although now  it is changing, as children salaries are older than the parents’.

In order to appreciate the different areas, despite the large price increase that homes have suffered throughout the country, we see that:

The Hainan Province is a high class residential area with tax advantages. There are promotions of modern design, with resorts and golf courses. It is a very nice, and quite wet area due to its proximity to the sea, located in the south of the country. It is best to buy high apartments and away from the sea to avoid deterioration. The capital, Haikou, and the area of Sanya are also quite expensive. Sanya is a tourist town with an artificial island connected by a bridge. The group of MAD Architects has designed PHOENIX 2, a luxury destination that will be completed by 2014. Since Northern China is very cold, this area is considered a good summer place to spend under the sun. Its target customers are Russian and Northern Chinese. The price of housing in the area is rising at a fast pace, reaching five times its annual price.

Other parts of China are more affordable. Areas that can be a good place to reside are: Guangzhou (near Hong Kong), and Guiling, a beautiful city that will be connected to Shanghai by a high speed train (340km / h), that is still under construction. The price of the area will rise considerably. As of 2010, the highest price to pay would be around 2,000 € / m2, but one can also find housing for 200 € / m2 outside the cities.

Beijing, the capital, has a very extreme weather, such that good conditions only last two months because August can reach up to 40º C. It’s a dense city in terms of people and with high pollution levels. It would be interesting to buy a house in the capital for investment purposes.

(I) HOMES in China

25 August, 2011 No Comments

The Chinese market is a market in which companies from all over the world will settle sooner or later, there will be a predictable increase in investment in homes and offices from foreigners. The average national wage is quite low to be able to rent an apartment or office space, which is why it is not a common alternative among Chinese people. When comparing both options, purchasing a space seems to be cheaper in the long run.

Here are some interesting legal/administrative details for foreign investors looking to buy a property in Beijing (published on the web spanish.china.org.cn). I am not positive; but I suppose that the conditions of foreign real estate investment in Beijing should be similar to the ones in the rest of the country.

Nowadays, it takes a series of permits and requirements that make this transaction a bit more complicated:

1. If you want to purchase a home in Beijing, you would need to request a certificate to the B. Municipal Public Security Bureau of Beijing, and it is mandatory that you have been working or studying in China for at least a year.
2. Foreign companies or organizations that have branches or agencies in Beijing, must certify in a written manner that the homes bought are used only for their own use, and prove their legal status.
3. In the event that the purpose of the purchase of dwellings is to rent, sale, or for commercial use, investors must submit a certificate showing the operations to be performed, and a certificate proving that the company is legally established in the country.
4. Foreign embassies in China, representatives of international organizations, and individuals who possess a “diplomatic status” must present a document from the Ministry of Foreign Affairs in order to buy a home.
5. In other words, what Chinese want is people who buy a home to live there, not for other purposes. They must buy the asset under their name (which, in theory, would exclude the possibility of purchasing it as a foreign corporation).

Real estate market in china

In conclusion, foreigners may only own a house in the capital, Beijing (China), as a dwelling, without the right sell or rent it. The new regulation that limits the real estate investment requires foreign buyers to show that they have been living in the capital for over a year as a student or for work reasons.

To buy a property for investment or business purposes, an investor must first establish a company and obtain approval from the authorities. The Investment in the sector, the constant increase in house prices and its consequences will be discussed in the next post.

BARCELONETA; a great Real Estate Investment!

18 August, 2011 No Comments

La Barceloneta is one of the four districts that make up the old quarter of Barcelona. Originally, about 150 years ago, fishermen that worked outside the harbor built their houses in this area. The buildings, which at that time were occupied by low to middle class people, clearly demonstrate this fact as they are built in a very simplistic way. Although they cannot be compared with flats and apartments in “l’ Eixample”, with their ornament and uniqueness, buildings in la Barceloneta are generally well built.

At the time these homes were built, builders focused more on maximizing the size of the apartment rather than on its comfort, that is why people say they are noisy, dark and they lack of privacy.

But today, this neighborhood is located in a very attractive area; near the beach and the old downtown, the Born, and with parks and sport facilities nearby.

BARCELONETA has had a remarkable turnaround, because until a few years ago it was an affordable place to live, but during the early 2000’s la Barceloneta experienced price hikes of up to 23%.

One of the reasons was the massive rebuild of homes the area suffered. We are talking about homes of an average of 35 to 50 square meters that have a clear target: young people, mainly foreign (UK and EU), and national.

A potential customer is a person who wants to be by the sea (without the barrier that represents having to take “the Ronda Litoral” to go to the beach), downtown, well connected and with under a cosmopolitan style (W Hotel Barcelona, ​​designed by Ricardo Bofill, Port Olimpic, etc.)..

This stretch is also reaching out to other nearby districts of Barceloneta, such as the Gothic Quarter or El Raval.

If we glance at the relationship price/m² for the year 2005/2006 in Barcelona, ​​we conclude that Pedralbes was the most expensive area, but La Barceloneta, in relative terms, was and is quite expensive, yet accessible to many buyers due to its small sized apartments where very few have a building lift, and usually need to be remodeled. We shall not forget that the smaller an appartment is, the higher the price/m².

The current home owners in this area are usually a mix of old people who have lived their entire life, and national or international investors who have rebuilt the apartments to rent them on a daily, weekly or monthly basis. It’s a business that has been working pretty well during the last few years due to the rotation of tourists visiting Barcelona and who like to be in this area.

La Barceloneta will remain attractive to buyers and investors in the near future, as its urban development is on track to become one of the trendiest districts of BARCELONA