Are you planning to sell your holiday rental in Barcelona? The market has changed drastically in the past 5 years, so you might be wondering how you should be setting the price for your property. How much is your touristic apartment worth?
How much should I sell my holiday rental in Barcelona for?
Apartments in Barcelona with a touristic license are different than the rest of the real estate markets.
Here are the reasons that make Barcelona’s real estate market different:
- If you have a license, it means that you are legally authorized to rent your apartment for stays shorter than 32 days. Without it, it would be illegal to dedicate your apartment to touristic stays, it is therefore mandatory to show your licence number in your online listings. It creates trust with the future guests and allows the region to keep an eye on any illegal use of properties for short stays.
- As the City Hall keeps the number of licensed apartments under 9600, it boosts the revenue generated by each apartment, as the competition is not growing anymore, while the demand from tourists is growing.
- With good management performance, it is possible to outperform the competition and have one of the best performing apartment in the city. This guarantees a great return on investment when you own the apartment, but it is also a powerful selling point if you wish to sell the property.
We can suggest a very simple equation to find out the price of a touristic apartment:
- Size of the apartment * average price per square meter in the neighbourhood + Premium (the price of license) = Total price (incl. profit)
To determine the base price, we can recommend using this chart:
To find out more about the information in this chart, click here.
Using the average price per square meter in Barcelona for the last year. And multiply it by the size of the apartment. This will give a rough estimate of the price of the apartment if it didn’t have a licence.
It is then necessary to add the ‘premium’, or simply said, the price that will differentiate your apartment than a similar one without a licence.
The accepted saying is that an apartment with a licence will cost €100,000 more than the same apartment without one. At Stay U-nique we would be a little bit more conservative by saying that price tag of the premium ranges between 60k-120k depending on different criteria.
There are a lot of factors which affect the price of the touristic licence for an apartment, the main ones being:
The size of the apartment is one of the major factors that affect the price of the licence. Generally speaking, the bigger the apartment, the more expensive the licence is. The premium for a 1 bedroom could be around €60-80,000 and go up to €120,000 for a four-bedroom apartment or more.
This factor defines the quality of the apartment. If the apartment is equipped with all updated technology then it deserves to have a high premium price.
Almost all of downtown Barcelona is touristic, but apartments in premium locations like Passeig de Gracia, or apartments with a view on the Sagrada Familia will justify a higher price.
In the end, all of those factors have to be taken into account to determine a fair premium price for your apartment. Every detail that gives your apartment a competitive advantage over other touristic apartments will make the price of your apartment increase.
The list mentioned here is by no mean comprehensive. Its purpose is to help you find the right price when you are trying to sell your property.
Of course, another very important factor to monitor is the offer of properties similar to yours. Finding several similar apartments will give you a good indication of what prices to set. On the opposite side, finding nothing comparable in your zone is probably a sign that you have a property that is being sought after. In this case, you can be optimistic when setting the price of your apartment.