How to sell my flat in Barcelona
If you have googled "Selling my flat of Barcelona" and you have come across this post is that there is still something that works well in this world.
If you are thinking of "selling my flat in Barcelona" in the current situation affected by the pandemic caused by COVID-19, you should know that having the right price expectation is the first step to get your flat sold at market price and in a reasonable time.
And as your time and attention are finite and precious, I begin with a summary: Selling your Barcelona flat requires you to consider the following:
- Barcelona was the first city to emerge from the 2008 real estate crisis and has been the first to enter the 2019 adjustment cycle, so watch out for the price!
- Foreign demand is not there and is not expected any time soon (watch out for the price!).
- Supply will grow and demand will shrink, so (sorry) watch the price.
In short: We have been better, but we are going to be much, much worse, so if you want to sell your flat in Barcelona, be realistic and don't get carried away by false expectations of prices that are not going to be met.
Residential real estate is in an adjustment phase
The first thing you need to know if you are thinking of "selling my flat in Barcelona" is where the city is in the real estate cycle. The answer in the case of Barcelona is that we have been experiencing a slight decline in prices for 18 months, which already started in Ciutat Vella in October 2017, that is, three years ago.
Furthermore, it is clear that, from March 2020, we must incorporate the impact of the pandemic on the real estate sector which, in the case of Barcelona, will mean accumulated price drops of between 5% and 8% for the whole year according to the report. Impact of the pandemic on the real estate sector prepared by Funcas in Cuadernos de Información Económica 278.
In practical terms this means that over the next 3-4 years (the adjustment cycle can last a total of 5-7 years) your flat will be worth less tomorrow than it is today, or in sales terms: Every day that your flat spends on the market at an excessive price, you move further and further away from its likely sale.
Having the right price expectation is the first step in getting your flat sold at market price and in a reasonable timeframe.
The purchase of flats by foreigners has fallen drastically
The political uncertainty in Catalonia, the Las Ramblas attack in July 2017, the riots in October 2017 and the housing policies of the Barcelona City Council and the Generalitat have repeatedly and constantly discouraged foreign demand. Even so, Barcelona as a city and the price of its flats compared to other European cities were sufficient arguments to sustain a certain level of demand which, since March and for the moment, has almost disappeared.
Thus, if you own a flat for sale in Barcelona in the districts with the most potential foreign buyers - Ciutat vella, Eixample, Gràcia, Poblenou - don't put too much hope in them in the short and medium term, they are not there.
The impact of the pandemic on the real estate sector brings us closer to an oversupply scenario
I think you don't need to be very clever to understand that in the coming months there will be people who will need to sell their flat to have liquidity and that for the same reason, the "poverty effect" linked to unemployment due to company closures, there will also be fewer people who will be in a position to buy a flat.
While it is true that in this scenario of falling prices due to oversupply effects, investors appear to "lift" demand, it is prudent to think that the net effect of all these dynamics will result in a point of equilibrium between supply and demand at a lower price than we see today.
This means that if you're thinking of selling your flat in Barcelona, you'd better take action soon - ideally now - to sell it. so that you don't have to add the negative seasonality effect of the first quarter of the year, which is traditionally the quarter in which the least sales occur.
Bonus track: choosing the wrong real estate agency is becoming increasingly expensive.
In the last 30 days I have personally received in our office three sellers of flats who, having signed arras and needing to sell their current flat to buy the one they have committed to, find that their flat is not sold (and they already suspect that it will not be sold) at the price their agency told them. Not even close.
It is time for you and other flat sellers to realise how vulnerable you are to a self-serving and irresponsible message about the price of your flat in the current economic downturn. That is why it is very important that you search, compare and choose well the real estate agency you are going to work with.otherwise they will tell you what you want to hear, you will sign a 6 month exclusive at 5 or 6% and when the offers arrive (if they do), they will be 15, 20 or 25% below the price they recommended... and they will justify themselves like their colleague Rodrigo Rato (because there are crooks in all sectors): "That's the market, my friend.
CONCLUSION
The conclusion if you are selling your flat in Barcelona is "watch out for the price": watch out for the price because we are in a phase of adjustment (price falls); watch out for the price because there are no foreign buyers to "save your ass"; watch out for the price because tomorrow you will have more competitors (more supply) and more impoverished buyers (less demand); and last but not least, watch out for the price... that some agencies give you, who do not mind that you sell too late and well below price in exchange for taking a badly earned commission. If you want a free valuation of your property, without obligation, reasoned and without generating false expectations, ask for a free valuation. here.
