Eixample District, Barcelona, Spain

Strategy: Core Plus, Short-Term Rental

Leveraging Spain's economic allure and Barcelona's global appeal, this distinguished property in Eixample represents an unparalleled short-term rental investment opportunity. Tailored for a discerning clientele seeking temporary residence amidst Barcelona's architectural splendor and Mediterranean lifestyle, this offering combines the historical charm and modern sophistication essential for high-yield short-term rentals. With a strategic focus on short-term tenancies, from one month to under a year, this property is perfectly positioned to cater to tourists, business travelers, and international students, capitalizing on Barcelona's status as a top tourist destination and a hub of cultural and economic activity. This investment not only promises substantial returns but also a stake in one of Europe's most vibrant real estate markets.

Investment Highlights

  • EU Economic Hub

  • Top Tourist Destination (#1 in 2023)

  • High Safety Standards

  • Mediterranean Climate

  • Rich Architectural Heritage

  • Modernist District Charm

  • Core Plus Investment

  • Touristic License

Offering Snapshot

  • Land Area

    4100 SF

  • Total Square Footage

    16,877.80 SF

  • Rentable Area

    15,145 SF

  • Total Units

    • 21 Touristic
    • 02 Retail

  • Units area

    • T: 500 to 2,000 SF
    • C: 236 and 1,711 SF

  • Asking price

    $11’020,000.0

  • LTV

    60%

  • Year Built

    2003

  • Zoning

    Touristic (T)
    Commercial (C)

  • Cap Rate

    6.96%

  • Returns, IRR

    11.17%

  • Gross Rental Income

    $ 725,800.0

Location Highlights

  • #1

    Best place to Move by Forbes

  • A

    Country Risk

  • 3.36%

    10Y Interest rate

  • 8%

    Spanish GDP driven by tourism

  • Lowest EU Cost of Living Index

  • €229 Billion

    Catalonia GDP

  • 26%

    % of Barcelona Population born abroad

  • ~15,000

    Barcelona New International Students YoY

  • 44%

    Lower Cost of living than NY

“Eixample is a prime spot for short-term rentals, attracting visitors with its architectural charm and central Barcelona location”

  • Discount Rate

    9.2%

  • Vacancy Rate

    A conservative 35%

  • Exit Strategy

    10 Year

  • IRR

    CoC Return 5.7%

The analysis incorporates average market rental and expense growth rates, providing a balanced view of potential income and outgoings. Despite a prudent vacancy rate of 35%, the investment yields an attractive CoC return of 5.0%. This yield improves to 8.14% in the sixth year, reflecting the efficient use of borrowed funds under the current interest rate conditions.

This thoughtful and conservative financial modeling demonstrates the property's potential for generating significant returns, even when facing less favorable market conditions. Including current interest rates and cautious vacancy rates further emphasizes the investment's robustness, making it an enticing prospect for investors looking to tap into the dynamic Barcelona real estate market.

For interested investors seeking a deeper understanding of this opportunity, further information will be provided during subsequent discussions. This will include a comprehensive market analysis, detailed risk mitigation strategies, and an in-depth review of the financials.

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