December 2016 Residential Market Report. Barcelona and its Metropolitan Area

Transcription

1 December 2016 Residential Market Report Barcelona and its Metropolitan Area

2 Introduction and Methodology 1 Contents Geographic Distribution 2 Conclusions of the Study 3 Forecasts Central Barcelona 5 Barcelona and its Metropolitan Area 6 2

3 Introduction and Methodology

4 Intro This report analyses the open-market new-build residential market in Barcelona and the main towns in its Metropolitan Area. The fieldwork undertaken for this report was carried out over the months of October and November 2016 and was finalised on 1 December The aim of this study is to analyse the housing market for new-build open-market apartments located in the city of Barcelona and the towns in its surrounding Metropolitan Area, as detailed in the following section. The report has been carried out based on 151 open-market apartment developments, of which at the closing date of our fieldwork (1 December 2016) 89 were being marketed, 57 had been sold, whilst the construction and marketing for 5 had been put on hold. Data was collected after carrying out extensive research on the different districts of Barcelona and 10 of the main towns in the Metropolitan Area. The system adopted in order to obtain data was carried out by comparing residential sales prices. Adopting this method, means that whilst every care has been taken to provide accurate data, Aguirre Newman does not accept any responsibility for the information provided on the surveyed developments. 4

5 Geographic Distribution

6 2. Geographic Distribution In the study of Central Barcelona, the various districts that make up the city of Barcelona are not generally treated just as one area, but rather various areas defined by their level of exclusivity. Hence the areas of Barcelona that are located in the prime area are the most exclusive, whilst those that form part of the 'A-3' area are the least exclusive. The division of areas and the housing developments within them has been based on Aguirre Newman s knowledge of the Barcelona residential market; also taken into consideration are the specific location, building specifications and the surrounding area. ZONA DISTRITO PERÍMETRO Sarriá - Sant Gervasi Pza. Francesc Macia Av. Diagonal Av. De Sarriá Pº Manuel Girona Bosch I Gimpera Cardenal Vives i Tutó Fontcoberta Carrer dels Vergós Pza. de Oriente Vía Augusta Calvet Travessera de Gracia Vía Augusta Av. Diagonal Pza. Francesc Macia. Ronda del General Mitre Vía Augusta Ronda de Dalt (Ambos lados) Av. República Argentina Ronda del General Mitre. PRIME Les Corts Les Corts Av. Diagonal Av. De Sarriá Travessera de Les Corts Gran Vía de Carles III Av. Diagonal D esplugues Eduardo Toldrá Ardemans Cº de Finistrelles Nogueres Avellaners Ametllers Font del Lloc Mare de Deu de Lordá Montevideo Av. España Bosch i Gimpera Mulhacén Pº de Manuel Girona Av. Sarriá. A - 1 A - 2 A - 3 L Eixample Sarriá - Sant Gervasi Les Corts L Eixample Ciutat Vella Ciutat Vella Les Corts L Eixample Gracia Sant Martí Les Corts Sants Montjuic Ciutat Vella Sant Martí Sant Andreu Nou Barris Horta Guinardó Pº de Gracia entre Gran Vía de Les Corts Catalanes y Av. Diagonal Travessera de Gracia Vía Augusta Av. Del Príncipe de Asturias Ronda del General Mitre Vía Augusta Clavet Travessera de Gracia. Travessera de Les Corts Gran Vía de Carles III Av. Madrid Av. Joseph Tarradellas Travessera de Les Corts. Pza. Francesc Macia C/ Comte d Urgell C/ Córcega C/ Muntaner C/ Valencia C/ Balmes Gran Vía de Les Corts Catalanes C/ Girona C/ Córcega Av. Diagonal Pza. Francesc Macia. Frente Marítimo del Pº de Colom y del Pº de Joan de Borbo Comte de Barcelona Barrio Gótico Gran Vía de Carles III Av. Madrid Ctra. Collblau Travessera de Les Corts Gran Vía de Les Corts. Pza. Francesc Macia Av. Joseph Tarradellas - Pza. Paisos Catalans C/ Tarragona Pza. España Gran Vía de Les Corts Catalanes Pza. Universitat C/ Pelai C/ Fontanella Ronda Sant Pere C/ Ribes C/ Marina Av. Diagonal C/ Girona Gran Vía de Les Corts Catalanes C/ Balmes C/ Valencia C/ Muntaner C/ Córcega C/ Comte d Urgell Pza. Francesc Macia Distrito Entero Pza. dels Voluntaris C/ La Marina Av. D Icaria C/ Taulat Diagonal Mar Ronda Litoral Pza. dels Voluntaris Resto del Distrito Distrito Entero El Raval, Ribera y La Barceloneta Distrito Entero salvo Frente Marítimo definido en A2 Distrito Entero Distrito Entero Distrito Entero 6

7 2. Geographic Distribution Below we detail the towns in the Metropolitan Area of Central Barcelona that are studied in this report. L Hospitalet de Llobregat Esplugues de Llobregat El Prat de Llobregat Santa Coloma de Gramanet Cornellà de Llobregat Badalona Sant Boi de Llobregat Cerdanyola del Vallès Viladecans Sant Cugat del Vallès These towns in the Metropolitan Area of the city were selected based on their proximity to Central Barcelona, real estate activity and the existing population as at the drafting of this report. In the study of both the different districts of Central Barcelona and the towns of the Metropolitan Area, any information relating to the surface area of properties, constructed sqm (sqm) relates to: (sqm) constructed area, excluding the proportional share of common areas. In developments which include a parking space and/or storage area in the final property price, we have deducted the corresponding amount from the apartment s retail price (the sales value of these elements if known, or an average for the area the properties are located in if not) to ensure that the pricing of apartments is uniform. Wehave not studied single-family homes in Barcelona, or in its Metropolitan Areas, as the lack of comparables and their diversity, could significantly distort the results. 7

8 2. Geographic Distribution As previously indicated, in order to ensure that the results of this report are as close to reality as possible, we have divided up the Central Barcelona market, as detailed in the lefthand map. In the Metropolitan Area, each area is studied individually, without further division. The towns analysed are shown in the right-hand map. Zoning map of the Central Barcelona residential market Location of the towns analysed in the Metropolitan Area L Hospitalet de Llobregat 6. Badalona 2. Esplugues de Llobregat 7. Sant Boi de Llobregat 3. El Prat de Llobregat 8. Cerdanyola del Vallès 4. Santa Coloma de Gramanet 9. Viladecans 5. Cornellà de Llobregat 10. Sant Cugat del Vallès 8

9 Conclusions of the Study

10 3. Conclusions of the Study After completing this market study, we can conclude that activity in the residential market (new-build and open market) of Barcelona and its Metropolitan Areas has maintained the same pace set in , defined by a slight increase in sales prices per sqm, an upswing in residential demand and developer activity, which despite trending upwards, is still not producing enough to satisfy current demand. Against this backdrop, average sales marketing periods stand at less than 24 months, and as a result, all units of most new residential projects have already been sold when their construction is completed. Finally, this year s study indicates that negotiating margins have narrowed significantly, after it bieng very much a buyer-ed market during credit crunch. The graphs below provide basic information on the residential market in Central Barcelona and the towns in its Metropolitan Areas that have been analysed. We will examine the data provided throughout this report and comment on specific characteristics and circumstances that we believe to be of most interest. DISTRITO Of Inicial Stock en unidades % Stock /Of Inicial Precio /m² Plazo Comercialización (meses) CIUTAT VELLA ,3% ,8 GRACIA ,3% ,1 HORTA GUINARDÓ ,6% ,7 L EIXAMPLE ,9% ,2 LES CORTS ,7% ,2 SANT ANDREU ,6% ,1 SANT MARTÍ ,4% ,6 SANTS-MONTJUÏC ,6% ,5 SARRIA-SANT GERVASI ,5% ,2 TOTAL ,6% ,6 MUNICIPIO Of Inicial Stock en unidades % Stock /Of Inicial Precio /m² Plazo Comercialización (meses) BADALONA ,5% ,2 CERDANYOLA DEL VALLÈS ,0% ,0 CORNELLA DE LLOBREGAT ,6% ,6 ESPLUGUES DE LLOBREGAT n.d n.d n.d n.d n.d L' HOSPITALET DE LLOBREGAT ,7% ,8 SANT CUGAT DEL VALLES ,8% ,9 SANT BOI DE LLOBREGAT ,3% ,5 SANTA COLOMA DE GRAMENET ,1% ,8 VILADECANS ,4% ,2 TOTAL ,9% ,0 10

11 Conclusions of the Study After completing our research fieldwork, activity in the Central Barcelona residential market over the period studied can be summarised with the following key points. The average price of an open-market home for sale in Central Barcelona has registered another increase over the last 12 months, of approximately 2%. An average apartment in Central Barcelona comprises 101 sqm, has an average price of 4,280 per sqm and an average final price of 432,972. In order to purchase an apartment, and considering a mortgage with an interest rate of 2.5%, the average buyer must pay a deposit of 86,594 and then make monthly mortgage payments of 1,554 for 25 years or 1,369 for 30 years. Sales marketing periods in Central Barcelona have remained stable, and have continued to fall in the towns analysed in its Metropolitan Areas. The average sales marketing period of a development in Central Barcelona (with an average of 27 apartments) is 22.6 months, compared to 22.1 months in New-build home sales fell during the first half of 2016, compared with the same period in This drop is not due to waning demand, but rather a lack of available new-build open-market supply. During the first half of 2016, 551 new-build homes were sold compared to 645 in Increasing development activity in Catalonia as a whole, particularly in the province of Barcelona, demonstrated by the rise in the number of new-build construction permits issued, which rose 7.4% in H compared to H A total of 27 new-build developments have come onto the market in Barcelona in recent months. The highest priced developments on the market were 8,500 to 10,000 per sqm in La Bonanova neighbourhood, within the Sarria-Sant Gervasí district, and 6,500 to 7,500 per sqm in l Eixample district NEW-BUILD AND EXISTING HOUSING SALES. CENTRAL BARCELONA (H ) APARTMENT STARTS IN CENTRAL BARCELONA Vivienda libre nueva Vivienda segunda mano Source: Spanish Development Ministry Source: Idescat 11

12 Conclusions of the Study The following conclusions refer to the 11 towns forming the Metropolitan Area of Barcelona which this report focuses on. One of the most important points to note is the extraordinary sales rates registered in the developments located in the main towns of the Metropolitan Area. Sales rates in the towns analysed have continued to decline, with an average of 13 months required to sell all the units in a development. This is causing an increasing number of new developments to come onto the market in towns in the Metropolitan Areas. In the Metropolitan Area, the average price per sqm for high rise apartments has grown by 1.1% to 2,409 per sqm, still a far cry from 2009 s peak of 3,687 per sqm. The average home area stands at 105 sqm, and the average home price is in the region of 254,013. A total of 21 developments have come onto the market in the Metropolitan Area of Barcelona. Over 50% of these developments are shared between Sant Cugat del Vallés, Badalona and Cornellá de Lobregat. New-build home sales in the towns analysed in the Metropolitan Area of Barcelona during H increased by 8.5% y-o-y. A total of 328 new-build homes were sold in H in the areas studied, versus 300 in H As with Central Barcelona, the reduced activity levels seen in the new-build market compared to the existing housing market, is down to the lack of new-build supply on the market. Existing home sales climbed 9.5% in H compared to H NEW-BUILD AND EXISTING HOUSING SALES BARCELONA METROPOLITAN AREA (H ) Vivienda libre nueva Vivienda segunda mano APARTMENT STARTS IN THE PROVINCE OF BARCELONA Source: Spanish Development Ministry Source: Idescat 12

13 Forecasts

14 4. Forecasts Below are forecasts for the Barcelona residential market and the main towns in its Metropolitan Area for the upcoming year. Generally speaking, over the next year, the trend started in 2015 will continue in terms of increasing price, sales performance, and new supply coming onto the market. In our view, sales marketing periods have reached a more than reasonable rate, and no further improvements are expected. Over the next 12 months, we expect average prices to increase by around 5% y-o-y, especially in the very best areas of Central Barcelona, listed as Prime and A1 in this report. This increase is due to higher levels of demand and the continued decline of available supply in these areas. In the remaining areas, where available supply is also decreasing, prices will be shaped by sales rates and the levels of existing supply. Increase in the sales volume of new-build open-market homes. The improved economic climate will continue to strengthen two key drivers of residential demand, job creation planned over the next two years, and an increase in household disposable income. This, along with favourable financing terms and conditions, will continue to bolster demand for homes. However, we must highlight that the key issue regarding job creation as far as the residential market (home purchases) is concerned is that the number of permanent contracts increase, as the number of temporary jobs created is virtually irrelevant for this sector. Sales rates for new projects will remain very positive, staying at levels reached during Sales marketing periods for new projects continue to shorten, with all units being sold whilst the development is still under construction or within a few months of its completion. The main driver of these high sales marketing rates is the fact that the new projects are being developed in areas where there is effective demand, accessible prices and a moderate supply. Construction activity will continue to grow at a steady pace thanks to solid demand and the low level of available stock in certain markets. The lion s share of new projects in the city centre continue to be full-scale refurbishments of buildings, in view of the lack of available land. International investment funds that traditionally invested in other types of real estate asset classes, will remain interested in acquiring plots of land to develop residential properties. Given their lack of expertise in the Spanish residential market, they usually join forces with local experts (mainly developers without sufficient financial backing). Many economic groups, particularly young people that are at the age of leaving home, are finding it particularly difficult to purchase properties, so they have had to turn to the rental market as a result. Nevertheless, interest in renting continues to be low compared to neighbouring countries and is more a consequence of the difficulty of acquiring a home than of a belief in the virtues of renting. 14

15 Central Barcelona

16 5. Central Barcelona Analysis of initial housing supply (Initial housing supply (or housing supply) refers to the total number of homes (apartments), whether already sold or not, forming part of the development projects being marketed in the area under analysis.) The following table details the initial housing supply in each of the four areas studied, in the Central Barcelona market (see point 2. Methodology and Geographic Distribution), as well as its comparison with total supply since ZONA PRIME A A A TOTAL Distribution of the initial housing supply by zones A3 32,5% PRIME 9,4% The initial housing supply fell by 14.1% due to the completion of sales of a significant amount of projects over the past 12 months. Some of those projects had been on the market for years, with remainder of the available homes being sold in the last few months. A1 15,5% Furthermore, the new schemes that have come onto the market in the last 12 months have been largely small developments that have not significantly impacted the amount of new build supply. As the graph to the left indicates, and as is usually the case, the A-2 and A-3 are the areas where the majority of the initial supply is found, accounting for 75.1% of the total. This is due to the greater development potential gained by having more available land. A2 42,6% 16

17 5. Central Barcelona Analysis of property sizes and average prices of properties on the market All of the figures indicated below refer to existing supply for sale when the field research for this report was completed (1 December 2016). Therefore, they do not refer to the price that properties could have been sold at over 2016, but rather the price of the properties on the market at the date of our fieldwork. ZONA Sup y Precios PRIME A1 A2 A3 MEDIA Var Sup media (m²) ,7% Precio medio (euro/m²) ,2% Precio medio vivienda ,6% Sup media (m²) ,3% Precio medio (euro/m²) ,6% Precio medio vivienda ,2% Sup media (m²) ,4% Precio medio (euro/m²) ,7% Precio medio vivienda ,7% Sup media (m²) ,7% Precio medio (euro/m²) ,9% Precio medio vivienda ,8% Sup media (m²) ,1% Precio medio (euro/m²) ,0% Precio medio vivienda ,2% Over the past 12 months the price per sqm of housing for sale in Barcelona has continued to increase (2%) going from 4,194 per sqm in 2015 to 4,280 per sqm in the period analysed. The average price per sqm of apartments in the most exclusive area of the city, the prime area, increased by 5.2% during the past year, reaching 7,946 per sqm. The average price per sqm has increased in all areas except in the A2, where it fell by 0.7%. However, the price in this area has remained above the levels registered in

18 5. Central Barcelona Analysis of property sizes and average prices of properties on the market DISTRITO Sup y Precios Var Sup media (m²) ,4% CIUTAT VELLA Precio medio (euro/m²) ,3% Precio medio vivienda ,0% Sup media (m²) ,5% GRACIA Precio medio (euro/m²) ,4% Precio medio vivienda ,6% Sup media (m²) ,5% HORTA GUINARDÓ Precio medio (euro/m²) ,7% Precio medio vivienda ,1% Sup media (m²) ,1% L EIXAMPLE Precio medio (euro/m²) ,1% Precio medio vivienda ,2% Sup media (m²) ,8% LES CORTS Precio medio (euro/m²) ,5% Precio medio vivienda ,9% Sup media (m²) n.d ,2% NOU BARRIS Precio medio (euro/m²) n.d ,8% Precio medio vivienda n.d ,3% Sup media (m²) ,7% SANT ANDREU Precio medio (euro/m²) ,4% Precio medio vivienda ,0% Sup media (m²) ,0% SANT MARTÍ Precio medio (euro/m²) ,0% Precio medio vivienda ,3% Sup media (m²) ,7% SANTS-MONTJUÏC Precio medio (euro/m²) ,1% Precio medio vivienda ,0% Sup media (m²) ,6% SARRIA-SANT GERVASI Precio medio (euro/m²) ,8% Precio medio vivienda ,7% Sup media (m²) ,1% MEDIA Precio medio (euro/m²) ,0% Precio medio vivienda ,2% Once again, Sarriá-Sant Gervasí is the district to register the highest prices, 5,871 per sqm, despite an y-o-y decline of 18.8%. This drop is due to the fact that 65% of available housing supply on the market belongs to two projects where the prices are below the district average. The remainder of developments in the district have an average price of 7,672 per sqm. The Ciutat Vella district comes in second, with an average unit price of 5,458 per sqm, up 3.3% y-o-y. Nou Barris is the district with the most affordable average price, standing at 2,817 per sqm in

19 5. Central Barcelona Parking spaces and storage units The following two graphs detail the average prices of both parking spaces and storage units by area and their comparison with the figures for 2014, 2015 and Average Parking Space Price ( ) Average Storage Space Price ( ) Parking and storage unit sales prices have remained stable in all of the areas analysed. Prices for parking spaces range between 50,000 per parking space in the most exclusive areas of Barcelona to 21,333 per parking space in less prime areas. Prices for storage units remain between 8,500 per unit in more expensive areas to 4,889 per unit in the most affordable areas. 19

20 5. Central Barcelona Analysis of marketing of existing supply Stock of homes refers to the total number of homes (apartments) available for purchase, i.e. not sold off-plan or sold. DISTRITO Stock en unidades % Stock Of Inicial % Of Inicial % Stock /Of Inicial CIUTAT VELLA 31 9,1% 70 4,7% 44,3% GRACIA 22 6,5% 56 3,7% 39,3% HORTA GUINARDÓ 30 8,8% 122 8,1% 24,6% L EIXAMPLE 48 14,1% ,3% 20,9% LES CORTS 15 4,4% 140 9,3% 10,7% SANT ANDREU 10 2,9% 64 4,3% 15,6% SANT MARTÍ 40 11,8% ,5% 12,4% SANTS-MONTJUÏC 95 27,9% ,8% 35,6% SARRIA-SANT GERVASI 38 11,2% 149 9,9% 25,5% TOTAL ,0% ,0% 22,6% Initial housing supply stands at 1,504 homes of which a total of 340 homes (22.6%) are available for purchase. The districts of Sants Montjuïc and L Eixample feature the highest housing supply, with 95 and 48 homes respectively, owing to the fact that these are the two districts to have the most new projects on the market. The districts of Sants Montjuïc and Ciutat Vella have the highest percentages of available stock, compared to initial housing supply. Finally, we would highlight that Sant Andreu and Les Corts are the districts with the lowest housing supply on the market, with 10 and 15 available homes respectively at the time of carrying out this study. 20

21 5. Central Barcelona Sales rate and average sales period for developments The sales period refers to the time required to market an entire medium-sized housing development at existing sales rates (number of homes sold since the beginning of the construction of the development, up until the date this report was completed). Sales rate refers to the percentage of a housing development that is sold each month. The following graph was obtained by analysing the sales rates in Barcelona in 2016 and the same figure in previous years from During the period analysed, sales marketing rates have held firm owing to the fact that the projects which are currently coming onto the market do so with very high pre-sales, are located in areas where demand is evident, and are being sold at market prices. Sales Periods DISTRITO % Vendido/mes Plazo Comercialización CIUTAT VELLA 2,9% 2,3% 1,9% 1,5% 0,9% 3,6% 2,5% 34,6 43,5 52,2 66,4 108,8 28,1 39,8 GRACIA 1,6% 1,1% 1,4% 1,0% 1,4% 1,1% 5,2% 61,9 91,7 73,8 95,3 71,9 90,6 19,1 HORTA GUINARDÓ 1,2% 1,2% 1,3% 2,3% 1,0% 3,2% 5,3% 83,9 85,3 74,6 43,3 102,5 30,9 18,7 L EIXAMPLE 1,8% 1,5% 1,3% 1,6% 83,4% 11,4% 3,1% 55,2 65,9 78,9 63,9 1,2 8,8 32,2 LES CORTS 1,8% 1,9% 1,9% 1,9% 2,1% 1,8% 3,7% 57,1 52,6 52,6 52,6 47,9 55,5 27,2 NOU BARRIS 1,5% 1,8% 1,5% 1,2% n.d. n.d. 9,5% 65,4 55,1 66,1 82,3 n.d. n.d. 10,6 SANT ANDREU 1,8% 1,5% 1,5% 1,5% 2,4% 10,6% 3,4% 54,7 68,3 64,8 64,6 42,4 9,4 29,1 SANT MARTÍ 1,7% 1,4% 1,4% 3,9% 2,6% 2,9% 5,4% 58,4 72,6 71,8 25,8 38,5 34,6 18,6 SANTS-MONTJUÏC 1,6% 1,3% 1,0% 1,0% 0,7% 2,9% 3,9% 62,3 78,2 100,8 102,8 143,8 35,1 25,5 SARRIA-SANT GERVASI 1,2% 1,0% 0,8% 1,1% 2,1% 1,9% 3,5% 82,6 96,2 120,8 87,2 48,1 52,2 28,2 Total 1,8% 1,5% 1,3% 1,5% 1,7% 4,5% 4,4% 55,8 66,7 74,4 66,7 58,8 22,1 22,6 21

22 5. Central Barcelona Financing of property purchases Taking into consideration average prices and average home sizes in each district, along with a mortgage with a 2.5% interest rate and amortisation terms of both 25 and 30 years, a simple calculation has been made in order to draw up the following table, in which we show estimates of the amount that a buyer would have to commit, in order to purchase an open market new-build home. We would also point out that we have not taken into consideration either VAT or purchase costs to be paid by the buyer when compiling these figures. The following tables detail the monthly cost both for a term of 25 years and 30 years in order to purchase an average apartment in Central Barcelona. Data is provided both by zones, as well as by districts. DISTRICT Average area (sqm built) Average apartment price Entrance Mortgage Monthly Monthly cuota (25 cuota (30 years) years) CIUTAT VELLA , , ,250 1,885 1,660 GRACIA , , ,073 1,920 1,691 HORTA GUINARDÓ ,980 62, ,184 1, L EIXAMPLE ,073 96, ,059 1,723 1,517 LES CORTS , , ,765 1,825 1,607 NOU BARRIS ,236 46, , SANT ANDREU ,567 62, ,054 1, SNT MARTÍ ,675 69, ,540 1,241 1,093 SANTS-MONTJUÏC ,647 66, ,717 1,201 1,058 SARRIA-SANT GERVASI , , ,995 2,624 2,311 TOTAL ,972 86, ,377 1,554 1,369 AREA Average area (sqm built) Average apartment price Entrance Mortgage Monthly Monthly cuota (25 cuota (30 years) years) PRIME 164 1,303, ,617 1,042,468 4,677 4,119 A , , ,494 1,972 1,737 A ,196 85, ,757 1, A ,523 64, ,219 1,154 1,016 TOTAL ,972 86, ,377 1,554 1,369 The increase in prices has meant that the monthly mortgage payment for an average sized property in the city of Barcelona currently stands at 1,554 for a 25 year mortgage term or 1,369 for a 30 year mortgage term. 22

23 Barcelona Metropolitan Area

24 6. Barcelona Metropolitan Area Analysis of initial housing supply (Initial housing supply (or housing supply) refers to the total number of homes, whether already sold or not, forming part of those development projects being marketed in the subject area.) The following table details the initial housing supply in each of the towns detailed in the study, as well as the change since MUNICIPIO BADALONA CERDANYOLA DEL VALLÈS CORNELLA DE LLOBREGAT ESPLUGUES DE LLOBREGAT L' HOSPITALET DE LLOBREGAT SANT CUGAT DEL VALLES SANT BOI DE LLOBREGAT SANTA COLOMA DE GRAMENET VILADECANS TOTAL Percentage distribution of the initial housing supply by Towns 17% 11% 3% 6% BADALONA CERDANYOLA DEL VALLÈS 31% CORNELLA DE LLOBREGAT L' HOSPITALET DE LLOBREGAT SANT CUGAT DEL VALLES 1% SANT BOI DE LLOBREGAT During 2016, initial supply in Barcelona's Metropolitan Area has fallen sharply (41.3%) compared to This marked decrease is due to the completion of sales of two developments over the past 12 months, which between them amounted to a combined initial supply of almost 900 homes. The new projects that have now come on to the market also comprise fewer homes than in During 2016, the towns with the highest initial supply are Baldona, L'Hospitalet de Llobregat and Sant Cugat del Vallés. Supply in these three areas amounts to 66% of the total initial supply figure. 12% SANTA COLOMA DE GRAMENET 19% 0% VILADECANS 24

25 6. Barcelona and its Metropolitan Area Analysis of property sizes and average prices of properties on the market All of the figures indicated below refer to existing supply for sale when the field research for this report was completed (1 December 2016). Therefore, they do not refer to the price that homes could have been sold for over the past 12 months, but rather the price that properties on the market had at that date. MUNICIPIO Sup y Precios Var BADALONA CERDANYOLA DEL VALLÈS CORNELLA DE LLOBREGAT EL PRAT DE LLOBREGAT ESPLUGUES DE LLOBREGAT L' HOSPITALET DE LLOBREGAT SANT CUGAT DEL VALLES SANT BOI DE LLOBREGAT SANTA COLOMA DE GRAMENET VILADECANS MEDIA Sup media (m²) ,6% Precio medio (euro/m²) ,4% Precio medio vivienda ,9% Sup media (m²) n.d ,5% Precio medio (euro/m²) n.d ,6% Precio medio vivienda n.d ,7% Sup media (m²) ,0% Precio medio (euro/m²) ,2% Precio medio vivienda ,4% Sup media (m²) n.d n.d n.d n.d n.d Precio medio (euro/m²) n.d n.d n.d n.d n.d Precio medio vivienda n.d n.d n.d n.d n.d Sup media (m²) n.d n.d Precio medio (euro/m²) n.d n.d Precio medio vivienda n.d n.d Sup media (m²) ,5% Precio medio (euro/m²) ,3% Precio medio vivienda ,7% Sup media (m²) ,7% Precio medio (euro/m²) ,1% Precio medio vivienda ,8% Sup media (m²) ,4% Precio medio (euro/m²) ,1% Precio medio vivienda ,7% Sup media (m²) ,2% Precio medio (euro/m²) ,6% Precio medio vivienda ,2% Sup media (m²) ,8% Precio medio (euro/m²) ,8% Precio medio vivienda ,8% Sup media (m²) ,6% Precio medio (euro/m²) ,1% Precio medio vivienda ,8% 25

26 BADALONA CERDANYOLA DEL VALLÈS CORNELLA DE LLOBREGAT EL PRAT DE LLOBREGAT ESPLUGUES DE LLOBREGAT L' HOSPITALET DE LLOBREGAT SANT CUGAT DEL VALLES SANT BOI DE LLOBREGAT BADALONA CERDANYOLA DEL VALLÈS CORNELLA DE LLOBREGAT EL PRAT DE LLOBREGAT ESPLUGUES DE LLOBREGAT Barcelona Metropolitan Area Parking spaces and storage units The following two graphs detail the average prices of both parking spaces and storage units by towns and their comparison with the figures for 2014 and Parking space and storage room prices have not varied a great deal compared to last year. The towns with the highest parking space prices again this year are Badalona and L Hospitalet de Llobregat, with an average price of more than 20,000 per space, whilst Sant Boi de Llobregat is the town with the lowest average price at 14,000 per space. Storage room prices have increased slightly, standing at around 3,600-6,200/storage room. 26

27 6. Barcelona Metropolitan Area Analysis of sale of existing supply Housing stock refers to the total number of homes (apartments) available for sale, i.e. not sold off-plan or sold. TOWN Stock in units % Stock Initial Supply % Initial Supply % Stock / Initial Supply BADALONA % % 29.5% CERDANYOLA DEL VALLÈS % % 100.0% CORNELLA DE LLOBREGAT % % 6.6% L' HOSPITALET DE LLOBREGAT % % 24.7% SANT CUGAT DEL VALLES % % 28.8% SANT BOI DE LLOBREGAT % % 40.3% SANTA COLOMA DE GRAMENET % % 77.1% VILADECANS % % 28.4% TOTAL % 1, % 28.9% Initial housing supply stands at 1,596 homes of which a total of 461 homes (28.9%) are available for purchase. The towns with the lowest levels of stock are Cornellá de Llobregat and Cerdanyola del Vallès. The highest levels of stock in Barcelona's Metropolitan Area are in the towns of Badalona, Sant Cugat del Vallés and L Hospitalet de Llobregat. The town of Cerdanyola del Vallès has the highest percentage of available stock compared to initial housing supply, given that there is only one development under construction, meaning there are very few comparables in the market. 27

28 6. Barcelona Metropolitan Area Sales rate and average sales period for developments The sales period refers to the time needed to market an entire medium-sized housing development at existing sales rates (number of homes sold since the beginning of the construction of the development, up until the date this report was completed). Sales rate refers to the percentage of a housing development that is sold each month. The following graph was obtained by analysing the sales rates in the towns in Barcelona's Metropolitan Area in September 2016 and the same figure in previous years from One can see that sales periods have continued to decrease compared to previous years. 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 64,7 50,6 77,8 4,2% 43,3 23,9 2,3% 2,0% 1,5% 1,3% % Vendido/mes Plazo Comercialización 7,7% ,0 10 MUNICIPIO % Vendido/mes Plazo Comercialización BADALONA 1,2% 3,0% 1,3% 3,1% 4,9% 3,1% 83,33 32,84 78,00 31,90 20,30 32,2 CERDANYOLA DEL VALLÈS 1,5% 1,5% 0,6% n.d. 0,9% 3,6% 66,67 66,88 162,60 n.d. 107,89 28,0 CORNELLA DE LLOBREGAT 2,0% 1,6% 1,2% 1,7% 1,4% 10,4% 50,00 63,49 81,00 57,60 71,91 9,6 EL PRAT DE LLOBREGAT 1,3% 1,1% n.d. 13,9% n.d. n.d. 76,92 92,64 n.d. n.d. n.d n.d ESPLUGUES DE LLOBREGAT 1,8% 1,4% 1,4% 1,1% 3,1% n.d. 55,56 70,59 72,20 91,80 31,86 n.d L' HOSPITALET DE LLOBREGAT 1,4% 3,0% 1,5% 2,1% 4,2% 10,2% 71,43 33,74 68,40 47,90 24,07 9,8 SANT CUGAT DEL VALLES 1,5% 1,3% 1,3% 2,0% 14,9% 14,6% 66,67 75,08 79,20 50,30 6,69 6,9 SANT BOI DE LLOBREGAT 2,1% 1,6% 1,5% 2,3% 4,3% 7,4% 47,62 61,03 66,80 43,50 23,20 13,5 SANTA COLOMA DE GRAMENET 1,6% 1,4% 1,2% 1,0% 0,9% 1,1% 62,50 71,62 83,50 98,50 111,04 89,8 VILADECANS 1,5% 1,2% 0,9% 1,7% 1,4% 3,8% 66,67 80,21 106,50 59,90 72,18 26,2 TOTAL 1,5% 2,0% 1,3% 2,3% 4,2% 7,7% 64,70 50,62 77,80 43,30 23,89 13,0 28

29 6. Barcelona Metropolitan Area Financing of property purchases Taking into consideration average prices and average home sizes in each town, along with a mortgage with a 2.5% interest rate and amortisation terms of both 25 and 30 years, a simple calculation has been made in order to draw up the following table, in which we show estimates of the amount that a buyer would have to commit, in each town in Barcelona, in order to purchase an open market new-build home. We would also point out that we have not taken in to account VAT or purchase costs to be paid by the buyer when compiling these figures. MUNICIPIO Sup. media (m²c) Precio medio vivienda Entrada Hipoteca Cuota mensual (25 años) Cuota mensual (30 años) BADALONA CERDANYOLA DEL VALLÈS CORNELLA DE LLOBREGAT L' HOSPITALET DE LLOBREGAT SANT CUGAT DEL VALLES SANT BOI DE LLOBREGAT SANTA COLOMA DE GRAMENET VILADECANS TOTAL The increase in prices per sqm means that the monthly mortgage payment for an average-sized property in Barcelona's Metropolitan Area currently stands at 964 for a 25- year term. The monthly mortgage payment for an average sized property on a 30-year term currently stands at

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