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Tranio Announces Second Development Project in Barcelona

We are pleased to announce our company’s participation in the construction of an apartment building on Carrer de Numancia, LesvCorts, one of Barcelona's central districts. We are investing in the project with one of our clients and a local developer.

The project, partly financed by a Spanish bank, comprises the construction of a 22-apartment residential building, 25 parking spaces and a street retail facility with a total area of 2,100 m².

"Barcelona is a promising market, and this is the second development project for us here. Tranio assisted in identifying the land plot for development, structured relations between the developer and investor, and is now coordinating the project. We will conduct apartment sales via our online platform ", Tranio's managing partner George Kachmazov said.

Barcelona is a promising market for value-added projects for a number of reasons:

  1. Low mortgage rates since 2014: Spanish banks provide non-residents with up to 60% LTV loans at 2.5% per annum on average, whilst for residents the conditions are even more attractive: they can take out a loan with up to 80% LTV at as little as 1.5% per annum.
  2. Price growth potential: Property prices in Barcelona fell by 37% between Q1 / 2007 (€ 4,732 per m²) and Q3 / 2013 (€ 2,957 per m²). Prices have been growing dramatically since early 2016. In Q1 / 2017, the prices per square metre in Barcelona were 11% lower in comparison with peak values. At the same time, international investor demands are constantly growing.
  3. Three major property buyers' motives - a seaside summer home, rental income and a "golden visa" when purchasing a property of at least € 500,000 - coincide in Barcelona.
  4. Growing demand: the limited new-build supply in Barcelona guarantees high liquidity, a solid pace of sales and yield growth potential for investors. The city's growth is limited by the sea in the south, by mountains in the north and by densely built municipalities in the east and west, which hampers the construction of new districts and makes its centre even more popular with buyers.
  5. Tourism development: According to European Cities Marketing, the capital of Catalonia is among the 10 most visited cities in Europe. About 8-9 million foreign tourists spend at least one night in Barcelona annually, a figure that continues to grow each year.
  6. Local population prosperity growth: Barcelona's population has been gradually recovering after a decrease in 2014. Private consumption has been growing since 2013. It amounted to € 22.88 billion by 2015, an increase of 5.4%. the unemployment rate is shrinking after reaching a peak of 23.7% in 2013; in 2016 it dropped to 14.4%.

Developments elsewhere

Our company has already started work on several value-added projects in Barcelona, Bavaria, Athens, Vienna and Miami. Investors with budgets starting from € 500,000 can participate in multiple developments by purchasing shares in current projects with an investment term of 18 months and a yield of 10% per annum.

Future plans of the company also include the launch of a collective investment fund in Germany by the end of 2017. Clients with budgets starting from € 30,000 will be able to make a joint investment in value-added projects with Tranio, earning yields of 12% per annum after tax and expenses.

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    Tranio’s managers offer advice on buying real estate overseas
    Anna Boyarchukova
    Anna Boyarchukova
    Head of Residential Department
    +44 17 4822 0039
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