#bcnrentals

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Latest Cost of Living Figures Barcelona

 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

Cost of Living Figures Numbeo December 2016

Basic utilities (electricity, heating, garbage collection, water etc) for a 85m² apartment €123.41

Internet 10mbps €35.68

Rent per month for a 1 room apartment in the city center €737.84

Rent per month for a 1 bedroom apartment out of the city center €561.41

Rent per month for a 3 bedroom apartment in the city center €1,261.81

Rent per month for a 3 bedroom apartment out of the city center €885, 21

According to these figures rent takes up 28.4% of the average expenses per month.

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Rental Home Tax in Barcelona

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.

With this new change tourists will in effect be paying the same daily tourist rental tax in a rental home as if they were staying in a five star hotel. With these new laws the Catalan government stands to profit an additional €180 million a year. The new law to raise tourist rental tax is still going through the government bureaucratic channels and if approved will be implemented in April 2017 just in time for summers tourist high season.

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Barcelona Holiday Rentals

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.

At the moment there are 9,606 short term rental licensed properties in Barcelona and there is a moratorium on the issue of new licenses. However by examining online short term rental websites studies show that there are almost 16,000 rentals on offer in Barcelona.  With 9,606 licenses and 16,000 short term rentals on offer simple math shows that approximately 40% are illegal rentals.

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Barcelona Rental Issues

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.

Working with relevant authorities City Hall wants to regulate the maximum amount of rent landlords can ask in certain areas of the city. The intention is to make rental prices within the range of all sectors of the society. At present those in the low-income bracket are struggling to pay their rents, even in the cheapest areas of the city. An average of 25% of low-income tenants’ salary goes on rent. Although this may be manageable it could easily get out of hand if rents continue to rise unmonitored by the municipality’s new plan.

The areas with the biggest problem of rising rents are those where tourists like to stay. Landlords prefer to rent out to tourists (legally or illegally) as tourists tend to pay more and so a shortage is created in the rental market for residents. With a higher demand than supply in rental homes for permanent Barcelona residents the owners feel free to raise their rents. The municipality sees a connection between tourist short term rentals and the issuing rents in the city for permanent residents. To further solve the rental problem the municipal government has put a moratorium of issuing any new tourist rental licenses. Only those properties which already have a tourist rental license may legally rent out their property for short lengths of time.

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Are you coming to Barcelona for summer?

A Summer Home in Barcelona

Summer is just around the corner; the high tourist season in Barcelona and those lucky enough to have a property in Barcelona with a rental license will be able to rent out their properties to visiting tourists. There are many laws about who can rent their property, who they can rent it to, how long they can rent for and for how long. If you have a Barcelona property it is important to learn about the rules and regulations related to rentals. You can consult with a real estate agent like Coldwell Banker to find out about your rights and about how to find tenants. If you have a second home in Barcelona you will be lucky enough to spend the summer in your own Barcelona home. And if you don’t have a Barcelona home to come to then maybe you should think about buying one! With your own Barcelona home you will be able to spend time in the beautiful Mediterranean city in the summer and rent it out the rest of the year. Another point to remember is that buying a Barcelona home (with a value of 500,000€ or more) will get you a Golden Visa – residency in Europe and freedom to travel unlimited visa-free in Europe.

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Helpful Tips to Renting 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.

Negotiate a Low Deposit – There is a legal minimum deposit of one month for unfurnished apartments in Barcelona and two months if they are furnished. Some landlords may try to include in the contract a clause whereby you have to give a 2-6 month rent as deposit. If you haven’t paid your deposit within 6 weeks of occupation the landlord can evict you.

Get on the Same Page as your Landlord – Make sure that it is clear to both parties what obligations the tenant and landlord have. Who will be responsible for maintenance in the apartment? What constitutes “normal wear and tear”? And have the inventory of items in the apartment and their condition in writing – signed by both parties.

Lawyer Up – Get a lawyer to look over your rental contract especially if you don’t speak Spanish.

Energy Certificates – Your landlord is obliged to have an Energy Certificate. There are also a lot of illegal rentals in Barcelona so if you don’t want to be kicked out half way through your rental period make sure that your landlord is licensed to rent out his property.

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Reyes Magos BCN Rentals

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.

Just as the Gospel of Matthew tells of the three wise men making their way from the east to Bethlehem to give gifts to the new born baby Jesus so the three kings arrive in Barcelona and hand out gifts to the local children. The Three Kings arrive by boat at Port Vell at about 5pm and the parade begins along a 5km route until it reaches the Montjuic Magic Fountain at about 9:30pm where there is a firework display and more celebrations. The parade floats and costumes figures parade through the streets accompanies by music as the characters throw candy to the onlookers. The traditional Roscon de Reyes is a round cream-filled cake topped with candied fruit. Hidden inside the deserts are dry fava beans and a small figure of a king. Whoever gets the cake with the king figure is king for the day and whoever is unlucky enough to get the cake with the beans has to pay for the dessert!

This is an excellent opportunity for homeowners and landlords to provide short term rentals to visiting foreigners. Visitors will be clamoring for an apartment in Barcelona for January so that they can experience this special festival. If you are a Barcelona home owner or someone looking to rent property in Barcelona contact Coldwell Banker real estate agency for the best service and properties in the city.

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Property News

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.

November Average House Prices

The average Spanish house prices rose by 1.9% in November as compared to November 2014.

Spain’s Construction Industry is Recovering

Thanks to the renewed interest in real estate investments in Spain there has been resurgence in the construction industry. Building activity has increased across the country contributing to the balance between supply and demand slowly reaching a stable state. Proof of this improvement can be seen in the increased amount of building permits issued in the second half of 2015.

Rentals, Illegal Tourist Rentals and Affordable Housing

Rental apartments leased to tourists are driving the rents of local residents higher as landlords compare the profit they can make by renting long term or short term. Locals are finding it difficult to keep up with the ever rising rents. The Platform for People Affected by Mortgages (PAH) is campaigning to keep rents affordable for locals. The movement began in Barcelona (the present major or Barcelona, Ada Colau was one of PAH’s founders) but has now gone national. The organization works towards preventing house repossession. The Barcelona mayor is also pushing towards municipal policy which will provide a safety net for homeowners about to lose their houses. One of her proposed moves is to block rental websites from advertizing unlicensed, illegally rented short term apartments. This would be done by requiring each advertisement to display proof that they are registered with the municipality and paying tax on the extra income.